The speed at which political instability spreads is now inextricably linked to social media, as disaffected populations globally increasingly turn to this powerful outlet to drive political demonstrations.
This, according to the latest Marsh Risk Management Research briefing, Social Media Heightens Political Risks in Emerging Markets, means that the 'rear view mirror' approach to risk management, which is frequently used by multinationals to forecast risk by examining past events, is no longer sufficient when operating in at-risk countries.
Evan Freely, Global Credit and Political Risk Practice Leader for Marsh, commented: “Social media can exacerbate political risk by accelerating the formation of political protests, and enabling civil unrest to more easily and quickly transition from a single-country phenomenon to a regional event. Conversely, authoritarian governments may use social media to deflect popular discontent away from political leadership and toward foreign entities.
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