1. Business leaders believe that political violence risk is real and rising More than one-half believe that business is now as much a target for attack as government, and think political violence will increase worldwide over the next five years.
2. Concerns about political violence are preventing companies from investing where they would like
Political violence has caused 37% of companies to avoid investments in overseas markets, and one in five firms have foregone otherwise promising business opportunities for the same reason.
3. As political violence risks evolve, four key threats are emerging:
- Supply chain risk is an increasingly important consideration – not least given energy security concerns
- Many executives fear that IT systems could become a target for cyber-terrorism
- A new generation of home-grown jihadi terrorism is forcing businesses to tighten up procedures
- CBNR (chemical, biological, nuclear and radioactive) risk is now perceived as a significant threat by almost one-quarter of companies.
4. Perception does not always match reality: business needs better information to understand where the real risks lie
Only 37% of business leaders believe that their companies have a strong understanding of the political violence risks they face, and perceptions of risk appear to be driven by media headlines rather than rigorous analysis.
5. Preparation is key, but most companies need to do more at this important first stage
Almost one-quarter of all companies have no continuity plan at all and a further 14% believe that their plan is insufficient in the light of political violence.
6. Companies that engage in local conflict issues can bring wide benefit to the business
This does not mean trying to solve political problems so much as driving economic development in ways that can help to deliver a more stable operating environment, with reduced operational risk and improved community relations.
