Sizing up the risk from political violence

Businesses believe that the risk from political violence is growing, and that terrorism and conflict will become bigger problems than ordinary crime, according to a new report published by Lloyd's of London.

by Lloyd's of London
Last Updated: 23 Jul 2013

The report Under attack? Global business and the threat of political violence quizzed board-level executives from around the world. It revealed that companies believe that the world is becoming more dangerous, with three in five saying that the business risks associated with political violence will increase in the coming years.

The report highlights four key threats: supply chain disruption, including energy security concerns; IT systems being a target for cyber-terrorism; employee vetting as concerns grow over home-grown terrorism; and chemical, biological, nuclear and radioactive risks.

Despite the fears of business executives, few companies are engaging with specialists in security to understand where the real risks lie.

In his foreword to Under attack?, Lloyd's chairman Lord Levene writes: "More than one of the organisations interviewed for this study has seen colleagues killed in politically motivated attacks.

"As recent world events have shown, political violence is not restricted to known 'hot spots', and the importance of reflecting changing political violence risk in corporate risk management has never been greater."

A growing body of thought suggests that business can play a more active role to help deliver a more stable operating environment and reduced operational risk.

Businesses, therefore, need to look at how they interact with the communities in which they operate, and assess when it's best to make an effective, potentially profitable, contribution to stability.

Under attack? Global business and the threat of political violence
Author: Lloyd's of London, foreword by chairman Lord Levene
Reviewed by Jennifer Whitehead

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