NEW YORK (March 26, 2024) — Whether or not political risk insurance is purchased, an organization should function as though it is uninsured and adopt thoughtful risk management tactics, according to RIMS new Executive Report titled, “Leveraging Insurance & Risk Management to Address Political Risk.”
The RIMS report defines political risk while outlining key considerations risk professionals should explore to effectively and proactively address political volatility. The report reviews political risk insurance, featuring a glossary of key political risk insurance coverages and definitions. The report also identifies other political risk management strategies including contractual risk transfers, safety and security measures, balance sheet protections, and the advantages of adopting a “bottom-up” risk management approach to combat political uncertainty.
“Changes in a country’s political structure or policies can lead to increased probability of loss,” the report notes. “Organizations that put robust risk management plans in place can benefit from lower political risk premium rates, because they have demonstrated to the underwriter that they understand their own risks and have taken an active role in reducing losses.”
The “Leveraging Insurance & Risk Management to Address Political Risk” executive report is authored by Tina Cameron, ARM, ARM-E, RF, senior manager of global insurance for World Vision International. The report also acknowledges Gayle Jacobs, senior vice president, political risk and structured credit at Marsh Specialty, for her expert contributions.
The “Leveraging Insurance & Risk Management to Address Political Risk” executive report is exclusively available to RIMS members only for the next 60 days. To download the report, visit RIMS Risk Knowledge library at www.RIMS.org/RiskKnowledge. For information about RIMS wide selection of risk management publications, learning experiences and events, visit www.RIMS.org.
About RIMS
RIMS, the risk management society®️, empowers risk professionals to make the world safer, more secure, and more sustainable. Through networking, professional development, certification, advocacy, and research, RIMS and its 80 chapters serves more than 200,000 risk practitioners and business leaders from over 75 countries. Founded in 1950, the Society publishes the award-winning Risk Management Magazine and produces RISKWORLD®️, the largest annual gathering of global risk professionals. RIMS embraces diversity, equity and inclusion and welcomes all risk professionals to connect and learn, explore the online Risk Knowledge library, tune into the RIMScast podcast series, and engage with the RIMS Community on the Society’s social media channels. To learn more, visit https://www.RIMS.org.
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