This paper is the fourth blueprint in our series on managing environmental, social and governance (ESG) challenges in business transactions, focusing on the core functions of the insurance industry – risk transfer and investments. Environmental, socio-economic and geopolitical developments shaping country risk profiles have become a focal point for the insurance industry in the past few years. This is because they address one business-critical issue, namely the stability of countries.

ESG country risk management approaches have therefore been developed and are outlined in this new publication.

It is hoped that the ideas set out in this publication will prompt risk professionals to include ESG country risk management in their toolkits as a matter of course. Doing so, will help to create a proactive, pre-emptive risk management culture which enables disciplined risk-taking and will also assist in protecting the reputation of the companies undertaking it.

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