The continuous nature of risk in emerging markets

Global businesses need to adopt formal structures to assess the ongoing risks posed by political instability and unrest in emerging markets if they are to protect their growing investment in these areas, according to Alisdair Ross , senior analyst at the Economist Intelligence Unit. The EIU conducted a survey of 177 executives around the world about their attitudes to operating risk management in the context of emerging market investments. The survey and the subsequent report (an edited extract of which appears here) were sponsored by the London market insurance group, Ace Global Markets and by IBM and KPMG.

Although emerging markets look a considerably less risky bet today than five or 10 years ago, it would be foolhardy to believe that the days of volatility have ended for good. Emerging market risk has not gone away. Indeed, because of the growing interdependence of the emerging and industrialised economies, managing it has become more critical than ever.