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Terrorism and political activism bring new risks for businesses in Europe

Terrorism brings Europe face to face with an increasingly
complex security environment, according to new research
from Aon, the leading global professional services firm pro-
viding a broad range of risk, retirement and health solutions.

Aon’s 2019 Risk Maps, developed in partnership with Contin-
uum Economics and The Risk Advisory Group, examine po-
litical risk, terrorism and political violence around the world.
This year the picture is complicated further by a resurgence
of populist politics, which has encouraged potentially divisive
policy shifts and may, in some cases, fuel extreme ideologies,
while challenging Europe’s rule-based order.

These issues are creating new risks for business, from the
security of their employees and property in the face of in-
creasing terrorism risk, to impacts on their supply chains and
investments as a result of populist government policies. There
is a range of risk management solutions that organizations
can use to respond to these challenging conditions in coun- numbers - but it is apparent that far-right terrorism and ac-
tries with which Turkey has trade and investment relations, tivism is on the rise throughout Europe.
as well.
• 16 percent of terrorist attacks in 2018 targeted or directly
Ferhan Özay, co-CEO of Aon Turkey, commented on the re- impacted business.
search in terms of risk management for businesses, and said:
“Terrorism threat and related impacts are normally covered Populism:
by insurance policies; however, businesses can expand the • Populism is no longer a fringe issue in Europe. 11 countries
coverage of their policies if they wish to insure more complex in Europe now have populist parties in government, while
problems such as exclusion from an area as part of a securi- populist parties hold on average 22 percent of vote share
ty operation, region’s loss of attraction following a terrorist across 33 European countries.
attack, or impacts of violent events arising from reasons to
be unveiled. • Where populist policies to lead to greater barriers to trade,
this has increased the prospect of politically-motivated moves
Physical damage is essential for insurance; but employees to frustrate established contracts, while forcing firms to con-
may quit and run away from a factory located in a war-zone sider their international supply chains as tariffs and trade
despite the lack of physical damage, and they may never come barriers rise.
back. Even this risk which can be called ‘Mandatory Aban-
donment’ can be included in the policy coverage.” • Anti-immigrant sentiment is one of the central tenets of
many populist movements. This is likely to fuel further far-
Key findings of the report include: right terrorism and social tension.
Terrorism:
• Terrorists are increasingly targeting public spaces and con- • Risks are also apparent for European firms operating
centrations of people, exposing firms to potentially signifi- globally, with regions such as sub-Saharan Africa and Lat-
cant exposures. in America particularly exposed to government interventions
• Germany experienced a spike in far-right attacks and plots that can impact firms’ ability to investment and trade inter-
- with 23 incidents between 2016-2018, doubling previous nationally.
Rabia Kübra Kanun / kubrac@bestyayincilik.com