Political Risks, War, Terrorism and Confiscation
These risks can be understood and managed with reasoned foresight and investment.
Political risk analysis is rooted in the intersection between politics and business, and it deals with the probability that political decisions, events, or conditions will significantly affect the profitability of a business actor or the expected value of a given economic action. Political risk refers to the complications businesses and governments may face as a result of what are commonly referred to as political decisions—or “any political change that alters the expected outcome and value of a given economic action by changing the probability of achieving business objectives”. Political risk faced by firms can be defined as “the risk of a strategic, financial, or personnel loss for a firm because of such nonmarket factors as macroeconomic and social policies (fiscal, monetary, trade, investment, industrial, income, labour, and developmental), or events related to political instability (terrorism, riots, coups, civil war, and insurrection).”
MXB works with specialised intermediaries to provide protection tailored to client’s risks in their international trade and investments.
- Confiscation insurance
- Non-repossession insurance
- Sabotage, terrorism, war on land
- Contract Frustration insurance
- Lenders interest
- International trade credit insurance
- Delay or cancellation of contracts (force majeure events)