2009-09-10

By Editor, CIR

Environmental and health risks should be at the forefront of the agenda for businesses and policy makers in Asia, according to Zurich. Their Asia Risk Monitor, which analyses the risks facing public and private sector organisations in the region, identifies resource scarcity and climate changes as key risks, while noting that each sub-region and each country face different problems in this area. In addition, health risks are a significant determinant of overall risk levels for a large number of Asian countries, with infectious diseases and pandemic risks being key factors.

The Asia Risk Monitor also finds that economic risks are inversely linked to the level of economic development. In parts of Asia the private sector in particular needs to be mindful of gaps in corporate governance, risks related to the lack of the rule of law and incomplete institutions governing goods and capital markets.

Commenting on the report, Geoff Riddell, chairman of Global Corporate and CEO of Asia-Pacific and Middle East at Zurich, said: "Individual Asian countries' risk profiles are as diverse as their economies, and may not have as much common cause as simple geography implies. However, the financial crisis of 2008 has made everyone acutely aware of how interconnected global risks can proliferate quickly."

"Understanding and tackling the risks related to the environment and health is not something an individual business, industry or country can do on their own, and Asian countries should look for natural coalition partners within and outside the region and for effective public-private partnerships in order to combat shared risks," concluded Mr Riddell.

The Asian Risk Monitor, written by Zurich's chief economist Daniel Hofmann, uses the firm's proprietary quantitative analytical framework of the Global Risk Assessment Module, which allows for the analysis of more than 60 specific risks and their implications for 158 countries, with an emphasis on global corporations.

The report can be downloaded from www.zurich.com/insight

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