Terrorist attacks surge worldwide in 2016

Terrorist attacks increased 14 percent worldwide in 2016, and are affecting an ever-wider set of businesses in more countries with more diversified tactics and intent to kill, broker Aon said in its 2017 Risk Maps for Political Risk, Terrorism and Political Violence.

The number of terrorist attacks worldwide grew to 4,151 in 2016 from 3,633 in the previous year.

The increase was particularly strong in Western countries, which saw a 174 percent increase in terrorist attacks in 2016 to 96 attacks. In 2016, the United States sustained the highest number of terrorist incidents in a decade, although, according to the report, the threat is likely to remain moderate in 2017. The share of Western countries, however, remains low compared to the total, accounting for less than three percent of terrorist violence globally.

Oil and gas companies were the target of 41 percent of terrorist attacks on commercial interests in 2016 and the trend has continued in 2017.

Nigeria and Colombia topped the list of countries affected by terrorism targeting the energy sector, with attacks by militants in the Niger Delta during the first half of 2016 causing Nigerian oil production to fall by 36 percent.

The Middle East and North Africa has the most dense concentration of high to severe risk countries in the world, with heightened political risk and elevated levels of political violence (for example, in Iraq, Syria, Yemen and Libya) spilling over to neighbours and undermining trade and tourism.

Impacts of terrorist attacks range from loss of life to business interruption and disruption in the supply chain. Other violent risks are also evolving at the geopolitical level, leading to increased defence spending, more authoritarian forms of government and a weakening consensus between states.

"The shifting dynamics around terrorism and political violence, reflected in the global events seen in 2016, are presenting an increasing challenge for companies,” said Scott Bolton, director, crisis management, Aon Risk Solutions. “Those with both domestic and international footprints have the potential to experience events that could impact their people, operations and assets. If we can understand what might reasonably impact an organisation and its people, then we are better able to apply 'best fit', consistent approaches to manage risk."

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