It seems as though every year is more turbulent than the last interms of political risks and tensions.

According to Marsh's recently updated political risk map, 2018 appears to beno different.

The map, based on BMI Research findings, highlights changes during thepast 12 months, and looks ahead to continuing risks and newconcerns. The map notes increasing tensions stemming from NorthKorea's ongoing missile tests — despite what the world witnessed inSouth Korea during the 2018 Winter Olympics.

BMI Research also finds continuing risk of increased globaltrade protectionism, predicting that "trade giants" such as theU.S. will try to obtain further trade restrictions in 2018. Thiscomes after a brief decline in the implementation of traderestrictions in 2017.

Political succession also remains a major risk across the globe,especially in Africa, along with the threat of terrorism, as shownby incidents in Europe, Africa and Asia, for instance.

Related: Terrorism and political violence call for review ofinsurance strategy

The following is a look at key developments in each region thatare likely to impact political risks in 2018.

North America

According to the Marsh report: "Since President Trump'sinauguration in January 017, changes in U.S. policy have beensomewhat unpredictable." Marsh and BMI Research expect thesituation to continue into 2018, and they see trade with China as akey target.

Midterm elections in the U.S. could result in a shift of seatsfrom Republicans to Democrats, with the potential for morepolitical gridlock, not less.

The unstable relations between the U.S. and North Korea continuein 2018, resulting in a risk of a missile attack by NorthKorea that would lead to U.S. military action.

Latin America

There is a high risk of political instability in Latin Americaas Brazil, Colombia, Mexico, Paraguay and Venezuela planto hold presidential and legislative elections in 2018. BMIResearch noted that, throughout 2017, Venezuela experiencedcontinued unrest as a result of its economic crisis. Suriname alsofaces increased political turmoil from its own economic crisis andthe continuing murder trial of President Desi Bouterse.

Related: Protests, riots, and loss of businessincome

Europe

Brexit — the UK's planned withdrawal from the European Union —is the primary political risk for this region. Companies should beprepared for the possibility that the UK will leave the EU withoutan orderly transition period, leaving many questionsunanswered.

Spain continues to face a push for independence by Catalonia,but the government has refused to recognize the pro-independencemovement.

Terrorism continues to be a significant political risk andsecurity concern as a result of 2017′s attacks in Barcelona,London, Sweden and other parts of Europe.

Africa

BMI Research noted that succession risks in Africa, "reached adecisive peak in 2017." Zimbabwe's transition of power from RobertMugabe to Emmerson Mnangagwa appears to have been a smooth one sofar, reducing the political risk in that country. Angola alsoexperienced a smooth transition from longtime President JoseEduardo dos Santos to Joao Lourenco in September 2017.

In other countries, the picture is not so positive. The recentelections in Kenya and Gabon were contested, and Cote d'Ivoirefaces army mutinies as well as much political maneuvering to seewho will succeed the current president in 2020.

The Democratic Republic of the Congo retains its dubiousdistinction as one of the most unstable countries in the world, dueto uncertainty over when elections will be held, weakeningpresidential authority and increased violence by armed groups.

Related: 7 reasons to consider a stand-alone terrorismpolicy

The Middle East

The chance of violence in Syria, Iraq, Bahrain and Yemenpersists despite the subsided threat from the Islamic State.Tensions between Saudi Arabia and Iran remain high, along withongoing conflicts between Israel and Hezbollah in Lebanon andIsrael and Hamas in Gaza. In addition, Israel is facing the risk ofa new Palestinian uprising.

Asia/Pacific

In addition to the tensions between the U.S. and North Korea,disputes over the ownership of islands in the area continue betweenChina, South Korea, Japan and Vietnam. Another factor increasingrisk in the area is the slowdown in China's economy in 2017 afterseveral years of exponential growth.

Measuring and mitigating risk

Despite political instability and other global risks,multinational organizations can't stop doing business abroad. Sowhat should risk managers be doing to measure and mitigaterisk for their companies?

As this report points out, although it's not possible in mostcases to control political risks, businesses can obtain credit andpolitical risk insurance to limit their losses. Terrorism insurancemay be appropriate, but coverage on a claim may depend on the wayan incident is characterized by the government of the country inwhich the incident occurred.

Related: Is terrorism risk insurance coveragenecessary?

Risk managers should consult their agents or brokers as well asinternal stakeholders to ensure that they have the correct coveragefor the risks their business may encounter around the world.

You can see an interactive version of Marsh's Political Risk Map2018 on Marsh's website.

Related: Insurance implications of war, domestic terrorismand nuclear threats