Aon Corporation launched a Political Risk Exposure Profile (PREP) service that provides customized financial analysis of political threats to a company’s global operations.
According to John Minor, senior vice president of Aon Trade Credit, the company’s survey of the Fortune 1000 revealed that most companies lack a satisfactory means of assessing and evaluating exposure to political risks. The new service was created with the intention of providing risk managers and chief executives better tools to manage those risks.
According to Minor, Aon’s political risk assessment service is based on a proprietary software database. It combines client data on worldwide business activities with country risk information and data on the financial costs of political risk. The system produces in-depth financial reports on the client’s political risk exposures, taking into account both country- and firm-specific factors to help clients manage these risks effectively.
Sam Wilkin, country risk advisor, stated that the new service translates the complexities of international political risk into the financial language of business, adding that political risks can impact firms in many ways and that the system takes all of these types of exposures into account.
According to Wilkin, to the company’s knowledge, the new service is the first of its kind — the only political risk analysis tool to produce results that are customized to the client’s specific exposures, global in scope and expressed using financial measures.
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