“The top 10 risks to the world in 2016”

We find ourselves glued to the television to receive vital information on current events not only domestically but internationally. The international events are impacting our economy more and more each day. Take for example the destabilization in China and how that has driven insecurities throughout the stock market. The crisis in the middle east, North Korea moving forward with their hydrogen nuclear program, etc. The list goes on and on. Over the past year I provided a list of the top 10 risks to businesses. It often related to the United States exposures. With that said, as companies continue to conduct business abroad it is time to review risks globally and how those risks can affect your business.

The Telegraph, a list put on by the Eurasia Group outlines the political and geopolitical trends that could upset the apple cart between the United States and Europe. Below is their list of the top risks for global investors. Interesting perspective.

  1. The Hollow Alliance – “The trans-Atlantic partnership has been the world’s most important alliance for nearly 70 years, but it’s now weaker, and less relevant, than at any point in decades. It no longer plays a decisive role in addressing any of Europe’s top priorities. Russia’s intervention in Ukraine and the conflict in Syria will expose US-European divisions. As US and European paths diverge, there will be no more international fireman — and conflicts particularly in the Middle East will be left to rage.” (source: The Telegraph)
  2. Closed Europe – “In 2016, divisions in Europe will reach a critical point as a core conflict emerges between Open Europe and Closed Europe — and a combination of inequality, refugees, terrorism, and grassroots political pressures pose an unprecedented challenge to the principles on which the new Europe was founded.” (source: The Telegraph)
  3. China
  4. ISIS
  5. Saudi Arabia – “The Saudi Kingdom faces a growing risk of destabilizing discord within the royal family this year, and its increasingly isolated status will lead it to act more aggressively across the Middle East”
  6. Technologists
  7. Unpredictable leaders – Example: Vladimir Putin
  8. Brazil
  9. Not enough elections – “Emerging markets underwent a historic cycle of national elections in 2014-2015, but this year there are relatively few opportunities for EM voters to make themselves heard at the ballot box. As slower growth and stagnating living standards stoke popular discontent, governance and stability will suffer. Historically, markets have been less volatile in non-election years, but this time will be different. By raising popular expectations, the massive income growth that most EMs enjoyed over the past 10 years has created conditions for a rude awakening.”(source: The Telegraph)
  10. Turkey – “After a decisive victory for his AK party in late 2015, President Erdogan will now push to replace the country’s parliamentary system with a presidential one. He’s unlikely to reach his goal in 2016, but his aggressive electioneering will further damage an already battered Turkish business and investment climate.” (source: The Telegraph)

 

To read the full article visit: Top 10 Global Risks

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