The role of political risk insurance when investing
Useful Links
Information
Over the past 30 years, the context of political risk has evolved rapidly, presenting industries and investors with new challenges. As geopolitical environments around the world gradually become more complex, so does trading because of the growing political risks. Investors and banks now view political risk assessments and political risk insurance (PRI) as a requisite when a company invests in a country, to ensure there is sufficient coverage in the case of any events that impact the company’s operations. PRI also provides enterprise with the required support to rebuild and continue operating after an event.
“Looking back at recent events in South Africa, it is even more prevalent to have such cover in place to safeguard business operations and avoid downtime,” states Cresco Director Rob Futter. “An in-depth political risk assessment is an extremely important step for any company to take before making a substantial investment on a particular project,” Futter adds.