Understanding potential travel risk is an essential part of travel planning, both from a traveller and travel buyer perspective. Risk management specialist Drum Cussac has now identified every risk alert sent in the first six months of this year to update its security intelligence platform to identify key global risk and security trends.
In this latest update to its RiskMonitor Trends, Drum Cussac highlights how the success of any organisation depends on how well it overcomes the risks in its path. But, with the world becoming an increasingly complex place to navigate, businesses are potentially putting people, operations, financials and even long-term reputation at risk if they don’t fully understand the landscape in which they operate.
It says the RiskMonitor gives “an up-to-date picture of the world” so companies “can proactively mitigate the risks” they face. “Through a combination of real-time risk alerts, in-depth post-event analysis and ongoing, long-term country risk ratings, RiskMonitor is able to give you the global insights you need to ensure employee safety and maintain operational continuity,” it explains.
The report clearly illustrates that on a global scale, security has become a more significant risk management concern as the first half of this year has progressed (rising above 50% of risks). Similarly, political risks are on the increase, albeit it remains a much smaller proportion. Environmental and Infrastructural risks have declined in terms of share across the period month after month.
CHART – The month by month category breakdown of risk alerts from Drum Cussac highlights a rise in security riskSource: 2019 Drum Cussac RiskMonitor Trends (Q1-Q2)
The latest RiskMonitor says the global security and political environment in 2019 has so far been dominated by “deteriorating relations between the US and Iran, which has increased stakes in the Middle East; deteriorating relations and a trade war between the US and China which threatens global economic growth; and the prospect of deteriorating relations between the US and North Korea threatening the Korean Peninsula”.
But that is not all, elsewhere, governments “were forced from office by protest movements in the Americas and Africa, struggled to respond to activist groups in Europe, and threatened existential escalation to quell movements in Asia,” it adds. Then, of course, you also have the matter of the delayed United Kingdom withdrawal from the European Union.
The Risk Monitor provides details on risk threats and levels per continent, with notable amendments including improving situations in El Salvador, Lebanon and Nicaragua, but a increasing risk in Venezuela.
Travel risk management can be a challenge for any business, especially those with global operations and interests,” explains Tom Roberts, head of intelligence and analysis services at Drum Cussac. “Risk can never be eliminated 100%, which means understanding the threats to your organisation is the best way of taking the appropriate measures to mitigate and minimise them.