Political risk features among the top five risks on enterprise risk management registers for many global companies, but relatively few identify it as their most pressing concern. Of the political risks identified in a recent survey by Willis, financial setbacks stemming from US tariffs and the Russia-Ukraine war are the most concerning..

Political risk features among the top five risks on enterprise risk management registers for many global companies, but relatively few identify it as their most pressing concern. Highly exposed industries such as contracting, transport and mining are disproportionately affected, according to research by Willis.

The research was based on responses from just 66 companies, but still offers a degree of insight into the issues being faced by large, global businesses today.

Just over half of those surveyed anticipated a negative financial impact on their organisation due to the imposition of tariffs by the US. Around the same number reported financial setbacks stemming from the Russia-Ukraine war. A third cited negative effects from Western tensions with China and the Middle East conflict.

Willis said political risk concerns have broadened and intensified since the firm began its research in 2018.

“In the eight years since we began this research, companies’ political risk concerns have changed almost unrecognisably,” said Sam Wilkin, director of political risk analytics at Willis. “In 2018, political risk was mostly a worry for highly exposed sectors investing in risky countries like Venezuela. Today, political risk concerns apply across sectors, involve a much higher level of potential loss and are focused on United States policy.”


Other report findings (Source: 2025 Political Risk Survey, Willis):

• Political risk losses peaked in 2023, driven by expropriation, political violence and currency convertibility issues. Some respondents faced losses significant enough to require restating corporate earnings.

• Companies most frequently relied on direct negotiations with host governments and political risk insurance to manage prior losses. For 2025, the most common mitigation strategies cited were diversification and the three lines of defence risk governance model.

• Top political risk concerns for 2025 included US policy uncertainty (particularly around tariffs) and geopolitical tensions involving the US and its allies.

• Other emerging risks included restricted access to key markets and the increasing threat of state-backed cyber activity and disinformation campaigns.

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