Going Global: Risk Mitigation Strategies to Keep Employees Safe

New technology and higher demand for goods create opportunities for companies to expand operations — and their people — into countries around the world.

We live in a global economy, with every part of the world dependent upon another region for at least 25% of its most valued resources.¹ The global economy has also resulted in more workforce diversity and mobility as companies source talent from other regions or relocate employees to foreign locations.

An estimated 9 million Americans live abroad as of 2023, twice the number than in 1999.² The evolution of remote work has made it even easier for people to work without the restriction of where they live, giving companies the opportunity to expand abroad with lower startup costs.

But the opportunities of globalization come with serious geopolitical risks, including political instability, climate change and violence – politically motivated or otherwise.

Geopolitical conflicts that disrupt supply chains and global trade patterns could cost the worldwide economy as much as $14.5 trillion over a five-year period.³ However, there's an even more critical aspect to consider: employee safety and wellbeing.

This is particularly important as geopolitical risks are growing due to several factors:

• The impact of labor costs and work strikes on supply chain resilience.

• A shortage in resources caused by natural catastrophes and other weather events, social and geopolitical challenges, and unmet goals related to energy transitions.

• Worldwide geopolitical reordering, which refers to how objectives and national interests change depending on global election outcomes.⁴

The HUB EDGE

Taking an organization global can jeopardize workforce safety and operational continuity. Companies that expand abroad need a comprehensive risk management plan to protect employees.

Here are key steps to keep your employees out of harm’s way:

• Assess the risk. Companies need to know the risk profile of the country in which they’re expanding. Expansion entails analyzing employee safety, as well as what medical resources are available in the event of a crisis. In addition to helping conduct a thorough risk assessment, a global insurance broker with an extensive overseas network can provide organizations with up-to-date information and local working knowledge of a location’s potential exposures.

• Train employees how to respond in dangerous situations. Employees living abroad should be educated about the area’s potential risks and how to avoid them. They should also receive crisis response training and have an emergency contact list readily available. An effective insurance broker can provide the necessary training and resources to empower employees to respond in emergency situations.

• Protect employees at company properties and at home. In addition to adequate security in all work environments, organizations should also make sure employees who have moved to a foreign country have access to safe and secure housing — and can leave their homes without risk.

• Know where your employees are. When employees live and work in a region with security concerns, an organization’s responsibility for their safety goes beyond the workplace. Organizations need to know where their employees are at all times, which includes their personal time when traveling or socializing with people outside of the company. Employers must be able to account for the whereabouts of their employees and assist them if needed.

• Understand the nuances of doing business in war zones. Most insurance policies contain war exclusion clauses, which exclude coverage for acts of war, including terrorism. Damages or losses caused by war-related events may not be covered by standard insurance policies, making it essential that organizations review policies with their broker and determine if additional coverage is needed.

• Don’t forget about mental health. Working abroad in the best of circumstances can still bring mental health challenges, but employees located in conflict areas are more likely to feel additional stress and anxiety. Encourage employees to seek support by offering resources and ensuring they are easy to access.

• Have safety protocols and an evacuation plan if needed. Organizations should work with their insurance broker to formulate an evacuation plan for a worst-case scenario, such as a political collapse, terrorism or war. An insurance advisor can also help organizations understand what emergency benefits are available under their business travel accident insurance policy, including medical and transport coverage. Companies should maintain close contact with their security and medical evacuation vendor for the most up-to-date information, as well as monitor the evacuation plans of international governments for their citizens.

As business opportunities arise around the globe, is your organization prepared to accept the challenge? Be proactive and put your plan into place now so you're ready for tomorrow.

¹ McKinsey.com, “How our interconnected world is changing,” February 9, 2023.
² Society for Human Resource Management, “Employers' Guide to Supporting U.S. Workers Overseas,” September 29, 2023.
³ Lloyd’s of London, “Lloyd’s geopolitical conflict scenario sees global economy exposed to $14.5tn loss,” October 9, 2024.
⁴ S&P Global, “Top Geopolitical Risks of 2024,” December 5, 2023