ACE White Paper Examines the Evolving Risk Management Issues of Political Risk and Emerging Markets

Business Wire, April 7, 2008

Emerging Markets Offer the Promise of Strong Growth, but the Rapidly Evolving Political Risks Are Too Often Overlooked

PHILADELPHIA -- The ACE Group of Companies today announced the availability of an informational white paper focusing on various risk management issues relating to emerging markets. The paper is entitled, "Political Risk: Balancing the Risks and Rewards of Emerging Markets," by Fredrik Murer, Vice President and Manager, North America, for ACE Global Markets, and provides corporate risk managers with an informative overview of the need to be proactive in assessing the full spectrum of political risks in a given country. This white paper previously appeared in The John Liner Review, the quarterly review of advanced risk management strategies.

"In an increasingly commoditized world, emerging markets provide some of the most compelling opportunities for growth. Globalization, however, poses strong challenges to traditional corporate risk management strategies. When it comes to emerging-market operations, however, unknown local factors, such as political volatility and uncertainty, make it far more difficult to identify, quantify, and manage the risks of doing business," said Mr. Murer.

The white paper discusses the need for companies to consider analyzing political and operating risk as part of their due diligence before investing in or engaging in trade in an emerging economy and the need for continuous assessment of political risk. In addition, the paper identifies one of the most common pitfalls of doing business in emerging markets as the failure to reassess those exposures as they evolve along with economic, social, and political considerations. Companies operating in emerging markets have to be especially sensitive to the winds of change that can cause political storms in once-calm regions and countries.

Commenting on the need to proactively manage the full extent of emerging market risks, Mr. Murer said, "By actively monitoring and managing the exposures brought on by the ever-changing political climate and by taking advantage of the increasingly sophisticated risk transfer techniques, companies can help ensure that they profit from global markets rather than become victims of political trends."

To obtain a copy of the ACE Political Risk white paper featuring Mr. Murer's discussion of risk management issues associated with managing political risks and emerging markets, please visit www.ace-ina.com/articles.> The ACE Group of Companies is a global leader in insurance and reinsurance serving a diverse group of clients. Headed by ACE Limited (NYSE:ACE), a component of the Standard & Poor's 500 stock index, the ACE Group of Companies conducts its business on a worldwide basis with operating subsidiaries in more than 50 countries. In North America, ACE provides insurance products and services through ACE USA, a retail broker-distributed business, and ACE Westchester, a wholesale broker-distributed business. To learn more about ACE in North America, please visit: www.ace-ina.com. White papers are authored from time to time for educational purposes by ACE employees in their capacity as experienced industry professionals. They do not necessarily represent corporate opinions or positions of the ACE Group.