A backdrop of conflicts, continued resource nationalism, as well as significant and sudden policy changes in countries previously considered safe and stable, means businesses face an array of risks when conducting business across borders, from expropriation of assets to trade disruption and war. In this briefing we look at how companies can protect themselves when they invest overseas.

Key takeaways

• Whether a company is relying on national laws, direct agreements or investment treaties for protection, enforceable dispute resolution mechanisms are key, with recourse to international arbitration preferred.
• Political risk insurance (PRI) can guard against an array of real and present risks, but insureds should review their insurance programmes holistically and may also need to look to other forms of insurance for certain risks.
• PRI and other forms of protection can work hand-in-hand, but it’s important that all obligations are understood at the structuring stage rather than when it comes to making a claim.