Extreme weather disruption, the U.S.-Canada trade rift and American political gridlock are among the top risks international businesses could face this year, according to a new report by Aon.
Aon predicts floods, droughts and forest fires are expected to continue this year with the costs of interrupted production, distribution, sales and travel set to skyrocket. Aon believes last year’s record for weather-related insurance claims will likely be surpassed. This extreme weather has never been more significant as a business risk, it says.
Politics will cause disruptions around the world
On the political front, Aon says the confrontation on trade between the United States and China will become the defining geopolitical dynamic of 2019. While business in the two countries will be complicated, their rift will complicate life for companies around the world. The report forecasts that this year, what started as a trade war, will ultimately harden into a more permanent stance.
It also suggests the legislative gridlock will close on policy making in Washington and toss the U.S. into “a period of pitched political uncertainty.” The ongoing battle between Democrats and Republicans will erase any hopes of consistency for businesses with trade policy left unchanged and the pace of deregulation slowing.