Geopolitical Risks are Right in Your Backyard Geopolitical instability has the potential to be a major disruptor, yet survey respondents don’t appear to see the connection between it and the risks they are tracking closer to home. Only 21% of respondents The fact is what indicated geopolitical risks as likely to affect their company's profitability in 2025. happens “over there” has a lot to do with what happens here, namely increased costs from supply chain disruptions and cyberattacks that originate from overseas, as well as domestic legislative and regulatory changes in response to global threats. Clients should also consider having backup or contingency plans in place to help mitigate losses or disruptions due to supply chain issues. How Your Broker Can Help: Geopolitical Risk How Your Brokers Can Help: Geopolitical Risk • Political risk insurance (PRI) helps businesses manage risks arising from political violence, contract frustration, sovereign payment default or government actions, such as confiscation, expropriation or currency inconvertibility, as well as nonpayment by foreign governments on cross-border loans or contracts. • Trade credit insurance will help protect balance sheets. How Your Broker Can Help: International Expansion • Assist in conducting a risk analysis of the local infrastructure in a region before investing. • Consult with insurance partners in the region who have been carefully vetted for their expertise. • Clarify locally admitted, required and mandatory insurance policies needed. • Secure political risk insurance. HUB International 2025 North American Outlook Report | 12