Riots in Egypt a stark reminder for companies operating in emerging markets: Marsh

Political unrest in Cairo and other cities across Egypt highlights the complex risks companies investing, manufacturing and trading in emerging markets must be prepared to manage, Marsh said.
Companies with operations in countries affected by political unrest face losses from risks such as business interruption, theft of and damage to property, threats to contract for both purchase and supply, late payments – potentially impairing cash flow. They must also have plans in place to evacuate employees safely, a Marsh release says.
“We have already seen companies across a number of industries affected by the acts of political violence in Egypt, including those in the oil and gas, hospitality and real estate sectors, as well as professional services firms and financial institutions,” said Evan Freely, global head of Marsh’s political risk and trade credit practice.
“These incidents in Egypt should cause every company with operations in emerging markets to re-evaluate the adequacy of their risk management strategies,” said Freely. “Companies need to make sure that they have insurance coverage for a broad range of perils, reducing uncertainty that can be caused over the classification of an event.”
Some buyers of terrorism insurance, such as those operating in Thailand, for example, have found themselves without cover following civil disturbances due to disagreements about whether certain events were acts of terrorism or political violence.