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Daniel M. Radulovic Proposition Manager for the Zurich Risk Room Zurich Insurance Group, Zurich, Switzerland

Global risk mapping

The Zurich Risk Room Approach

The Zurich Risk Room Methodology

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Zurich’s proprietary country risk assessment tool

Combines vast amounts of data

Monthly data, primarily from public sources, for over 150 countries, covering 80+ individual risks, across 6 broad categories:

− Business − Economic − Geopolitical − Environmental − Social − Technology

With a risk correlation matrix

Used to illustrate the complex interconnectivity between different types of risks and model forward looking scenarios

Provides an intuitive visualization of the complex risk modeling data

Holistic country risk mapping requires a tailored approach: A study of 3 Eastern European countries: Albania, Czech Republic, and Hungary

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Example #1: Country Credit Worthiness

• Typical measure, used by many corporations as a proxy for overall country risk

• Primary focus:

• Countries’ ability/ willingness to repay sovereign debt

• Downside:

• Limited in scope

• Could overlook important risk exposures relevant to particular industries or individual businesses

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Holistic country risk mapping requires a tailored approach: A study of 3 Eastern European countries: Albania, Czech Republic, and Hungary

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Example #2: Focus on Food and Beverage industry

• Included additional risks such as:

• Exposure to rising food prices, Exposure to rising oil prices, Burden of government regulation, Paying taxes, Employing workers, etc.

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Holistic country risk mapping requires a tailored approach: A study of 3 Eastern European countries: Albania, Czech Republic, and Hungary

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Example #3: Focus on Manufacturing Industry 1

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A simplified, demo version of the full app

Contains 5 predefined scenarios on:

− Macroeconomic Imbalances

− Political Volatility

− Nat. Cat. and Disaster Management

− Supply Chain Disruption

− Demographic Shifts/Longevity Risk

Provides the ability to model changes in individual risks to see how they impact other interconnected risks

Available free of charge to the general public

To learn more, download the free Zurich Risk Room

mobile apps: