Managing Export Risks

High Risk Zones

What locations are currently deemed to be high-risk? Justin Bowden, CEO of Beltin Group, the solutions provider, lists the following:

EXTREME RISK TO COMPANY, PEOPLE AND ASSETS:

Somalia

* Generalised lawlessness and insecurity continues outside the breakaway Somaliland region.

BUSINESS SEVERLY DISRUPTED AND CRITICAL RISK TO STAFF:

Afghanistan

* Continuing insurgency, including frequent attacks on civilians, as well as coalition and government targets.

Iraq

* Sectarian and ethnic conflicts.

* Insurgency against government and US-led forces.

* Persistent attacks against foreign operations and personnel, including abductions.

SECURITY SITUATION OR COUNTRY INSTABILITY REPRESENTS A RISK TO STAFF, THEIR FAMILIES AND PHYSICAL ASSETS:

Burundi

* Obstacles to the peace process remain, and further delays and suspensions of peace negotiations are likely.

*Fighting and armed banditry continues in parts of the country.

Chad

*Reduced but ongoing risk of a rebels’ offensive launch against the capital Ndjamena.

*Constant instability in the eastern part of the country.

Côte D’Ivoire (Ivory Coast)

*Slow implementation of the Ouagadougou peace agreement.

*Continuing insecurity in the west of the country.

*Although the disarmament of pro-government militias has started, rebels and militias still have a military capability.

*Underlying risk of a coup.

East Timor

*Continuing risk of politically motivated violence.

*Difficulties with safe and ordered evacuation from East Timor, as a result of geography and limited communications.

Haiti

*The security situation in the capital Port-au-Prince remains fragile; violent crime and kidnappings continue.

*The UN and police remain stretched, struggling with gangs and common criminals.

Liberia

*Major security risks remain in most of the country, especially outside the capital Monrovia.

Pakistan

*Anti-western terrorism.

*Unresolved dispute with India over Kashmir.

*Political opposition is generating anti-President Pervez Musharraf attitude.

*Sectarian violence.

Palestinian territories

*Continuing risk of violence between Palestinian factions.

*Israeli military operations against Palestinian militants in the Gaza Strip.

Saudi Arabia

*The terrorist threat will remain for the foreseeable future and further attacks against Western interests. Large-scale attacks, small-scale targeted shootings and abductions, are likely.

Yemen

*Continuing extremist activity.

*Ongoing fear about terrorist attacks against foreign interests.

*Sectarian insurgency in remote parts of the country.

Zimbabwe

*Fragile situation in the country’s major cities, with continuing shortages of fuel and food.

*Potential for internal political breakdown and worsening economic conditions. 

Country Risk 2008

To ensure your business isn’t in the wrong place at the wrong time consult Coface’s Handbook of Country Risk 2008, or read up on the Export Finance and Insurance Corporation’s Country Risk Assessments page.

For more information, visit www.coface.com and www.efic.gov.au