Gallagher has highlighted 10 conditions signalling heightened political risks for businesses, underscoring the challenges Australian companies face in navigating a complex global landscape.
These conditions range from trade tensions and regional instability to cyber threats and geopolitical unrest, all of which have direct implications for Australian enterprises, especially those engaged in international trade or operations.
In its blog, Gallagher said key concerns include the impact of trade disputes between major economies like the US and China – which can disrupt exports and imports – and Australia's proximity to areas of territorial conflict, such as the South China Sea.
Additionally, changes in foreign trade policies, cyber espionage, and geopolitical tensions, including resource nationalism, pose significant risks to businesses involved in energy, critical minerals, and carbon-intensive industries.
The global brokerage also pointed to the potential disruptions caused by global health crises, such as the COVID-19 pandemic, which have shown to significantly affect business operations, travel, and consumer behaviour.
Moreover, businesses relying on patented technology or unique intellectual property rights may face challenges in protecting their assets in certain regions.
Gallagher suggests a proactive approach to risk management to sustain operations and growth in uncertain times.
Last month, Gallagher offered its insights on concerns surrounding psychological health conditions – the fastest-growing cause of illness in the country.
