RiskMap 2016: Crisis Point?

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LONDON, Dec. 14, 2015/PRNewswire=KYODO JBN/ -

- The security and political risk outlook looks worse than at any point in the

past decade  

- Terrorism, Middle Eastern instability, cyber-risk, a Chinese economy in

transition and European financial and political uncertainties mean a

potentially more volatile world in 2016   

- But there are causes for optimism, including the possibility of further

successes of multilateral diplomacy following the landmark Iranian nuclear deal

and the restoration of US ties with Cuba  

- Stable growth in most western economies, the possibility of a gradual rise in

commodity prices as the decade continues, and indications by governments that

they are willing to cooperate on environmental issues, offer a range of

opportunities to well-prepared businesses in 2016 and beyond  

Control Risks, the global business risk consultancy, today publishes its annual

RiskMap report, an authoritative guide to political and business risk and a key

reference for policy makers and business leaders seeking to plot global trends

over the coming year. RiskMap highlights the most significant underlying trends

in global risk and security, and provides a detailed view from the markets that

will matter most in 2016.

Control Risks' report suggests 2016 will be a challenging year for businesses,

as they are forced to navigate escalating security and political risks.

The cyber threat will grow as more nation states engage in cyber operations and

criminal attacks on corporate networks become increasingly damaging.

Uncertainty over China's capacity to adapt to a new era of 6% growth has the

potential to send jitters through global markets.

Presidents Obama, Putin and Xi are locked into an impasse, each grappling with

his own domestic issues and nullifying the others' influence overseas.

Civil society activism is flourishing, threatening unwary business with serious

reputational damage.

Al Qaida regroups in the Yemen and elsewhere, while IS continues to entrench

its 'caliphate' in the Levant.

Europe is fractured, dealing with growing nationalism at home and failing to

provide co-ordinated responses to challenges such as terrorism, regional

security threats and migration.   

And perhaps the biggest potential disruption of all, another global financial

crisis, could be triggered by any combination of an end to cheap money, a

Eurozone crisis, or a Chinese hard landing.

But political and security concerns need not translate into a major business

downturn.  Control Risks expects that the relative political stability of

Western democracies will potentially give their economies a renewed competitive

advantage over developing economies (such as China and India), which are

confronting slowing growth and the prospect of political unrest.

Introducing RiskMap 2016, Richard Fenning, CEO, Control Risks, commented:

"We live in an age of surprises.

"We have seen very clearly how agile start-ups can subvert entire industries,

how firebrand celebrities can single-handedly alter a country's political

landscape, how corrupt governments can be jolted into reform by angry protests,

how terrorists can use social media and the internet to revolutionise their

operations, and how skilled cybercriminals can steal sensitive data from even

the most secure corporate databases.

"These risks - and many others - will continue to threaten unprepared

businesses. Whether it is the see-sawing balance of economic power between the

East and the West, uncertainty about the future of commodities prices, the

disconcerting metastasis of IS, the ramifications of China's adjustment to its

new economic reality, or an explosion in the frequency and severity of criminal

cyber-attacks, successful businesses will need to prepare themselves to face

tough challenges on a number of fronts.

"It would be easy to think the world has never been more unsettled, or

unpredictable, than now. But businesses and investors would do well to remember

that, despite the many risks and challenges that 2016 will present, the world

has always been a shifting and unpredictable place. That may be little comfort

if your boat is sinking off the Greek coast, if your company is left stranded

by an unforeseen technical innovation, or if you have just discovered a

16-year-old hacker at large in your network, but it is important to remember

that the world remains full of promise for the well-prepared investor. Risk is

a necessary precondition for opportunity, and 2016 will be no exception."

For the RiskMap 2016 report, please visit http://www.controlrisks.com

About Control Risks  

Control Risks is a global risk consultancy specialising in political, security

and integrity risk. The company enables its clients to understand and manage

the risks of operating in complex or hostile environments.  Through a unique

combination of services, wide geographical reach and by adopting a close

partnership approach with clients, Control Risks helps organisations

effectively solve their problems and realise new opportunities across the

world.  

http://www.controlrisks.com

SOURCE: Control Risks