Brexit and US President Donald Trump’s protectionist trade stance have pushed political risk back into the top 10 concerns for companies worldwide, according to Aon’s Global Risk Management Survey.

Political risk ranks ninth in the biennial survey, conducted in the fourth quarter of last year, moving up six places from 2015.

Political upheavals witnessed last year, such as the UK’s vote to leave the European Union and Mr Trump’s unlikely victory over Hillary Clinton, illustrate a growing anti-globalisation trend in the developed world.

Upcoming elections in France, Germany and Italy could bring further disruption.

“Interestingly, developed nations, which were traditionally associated with political stability, are becoming new sources of volatility and uncertainty that worry businesses, especially those in the emerging markets,” Aon says.

“Globalisation is no doubt a contributing factor.

“It has driven greater connectivity, enabling people, goods and services to move freely, improving
the quality of life, especially for people in the developing world.

“However, globalisation has also triggered a backlash from those who have been left behind, prompting populist leaders in the West to pull back and protect what they believe is in their national interest.”

Damage to reputation/brand is the No.1 risk, followed by economic slowdown/slow recovery; rising competition; regulatory/legislative changes; and cyber crime/hacking/viruses/malicious codes.

The online survey drew responses from 843 risk decision-makers across 33 industries worldwide, including about 6% from the Asia-Pacific region.