Resilience, Not Reaction: A CFO’s Role in Navigating Political Risk

Most CFOs are wired to think ahead. They model financial futures, assess threats to capital, and build strategies to preserve enterprise value. But there’s one area that’s often underestimated—the financial impact of political violence and terrorism.

As geopolitical risks become more volatile, the role of the CFO must evolve beyond spreadsheets and solvency. In emerging markets especially, resilience isn’t optional—it’s a strategy.

Terrorism and political violence insurance isn’t just another line item in a risk register. It’s a financial safeguard against destabilizing events that can shutter operations, damage assets, and erode market confidence.

Here’s how CFOs can lead on this front—with clarity, credibility, and foresight.

1. Start with Business Impact, Not Policy Wording

Forget the exclusions and jargon. Start with what matters:

“If your head office or key facility is damaged during a riot or politically motivated attack, how quickly can you recover? And how much will it cost to get back on your feet?”

Political violence coverage is about business continuity, not just insurance. It protects cash flow, preserves investor confidence, and avoids the scramble for emergency liquidity in the wake of unrest.

2. Paint a Realistic Scenario

CFOs are risk-calculators. Give them something tangible to assess:

“Let’s say your logistics hub in Nairobi is damaged during civil protests. Your property policy excludes political violence. Now you’re facing millions in uninsured losses, months of downtime, and reputational damage.”

It’s not about fear—it’s about being prepared for credible, real-world risks.

3. Speak the Language of Financial Exposure

CFOs think in terms of exposure, recovery, and reputational impact—not policy jargon.

So reframe the conversation from premium cost to financial consequence:

“What would it cost us to rebuild, restart, and recover if political unrest shut down our operations tomorrow?”

• Civil unrest can cause weeks of downtime, supply chain disruptions, and physical damage.

• Recovery is rarely quick—or cheap.

• If uninsured, the financial hit can be severe enough to affect liquidity, investor confidence, and even creditworthiness.

This isn’t about fear—it’s about understanding the potential financial shock before it hits the balance sheet.

4. Clarify What the Coverage Actually Does

Keep the explanation focused:

“This policy protects us financially if our assets or operations are disrupted due to politically motivated events—like terrorism, riots, sabotage, rebellion, or a coup.”

In many markets, these aren’t edge cases—they’re active threats.

5. Embed It in Your Resilience Framework

Political violence coverage isn’t about paranoia. It’s about risk-informed leadership.

• Investors expect companies to assess and mitigate geopolitical risk.

• Customers expect uninterrupted operations.

• Boards expect CFOs to anticipate black swan events before they happen.

Positioning this coverage as part of a resilience strategy aligns insurance with long-term value creation.

6. A 30-Second Pitch Every CFO Should Know

“This policy ensures that if our operations are disrupted by political unrest—an increasingly common reality in our regions—we have the financial protection to bounce back quickly and maintain business continuity.”

Final Thoughts

The role of the CFO is expanding. Today, it includes steering the company through uncertainty and instability with clarity and control.

Terrorism and political violence insurance is a powerful tool to do just that.It’s not just a policy. It’s a strategic hedge against forces beyond your control.

Don’t wait to react. Build resilience now.