Investors and businesses must make sure they are aware of the political and economic risks associated with emerging markets, urged Aon as it published its 2004 Political and Economic Risk map.
Looking at Latin America, Aon said Brazil had become more politically stable following the election of Lula da Silva in 2002.
But it said many Middle Eastern states had seen their political stability downgraded due to the continued instability and uncertainty over the situation in Iraq.
The possibility of further coalition activity elsewhere in the region and the risk of terrorism or kidnap in the region had also contributed to the heightened sense of risk, said the broker.
It said risk perceptions in Africa continue to stabilise due to the developed world's need to increase oil and gas sources outside the Middle East, with exploration and prospecting in the Gulf of Guinea being a particular area of focus.
Aon Counter Terrorism and Political Risk team director Martin Stone, said: “Investors must make sure that they have the best intelligence available before making decisions, and undertake thorough assessment of the risks associated with their investments.
“While the attractions of investing in these highly profitable markets are clear, mistakes can be costly. Investors should be properly equipped with the right information, appropriate insurance cover and an ongoing risk management strategy.
Justin Priestley, Aon Counter-Terrorism director added: “With terrorist organisations demonstrating global reach, it is vital for companies to be aware of the threats their property and employees face.
“Companies must act, both to protect their assets against threat, and to prepare for the impact of political uncertainty or terrorist attack.
