Crime and government effectiveness risks

Government effectiveness is a key national indicator used to understand and quantify the risk of doing business in a specific country. Many governments do not have an effective infrastructure to control crime, prosecute crime, or incarcerate criminals. As a result, these regions or countries face increased risks of corruption, non-compliance, and criminal activity.

From occupational and environmental health and safety perspectives, weak government infrastructures pose significant threats to employee safety at work. For example, BSI has discovered a correlation between an ineffective regulatory body and blocked emergency exits at factories. Another example is the illegal dumping of chemicals and lack of controls to monitor stream and lake pollution.

Outsourcing operations to unfamiliar regions and countries with weak government infrastructures hinders a company’s ability to evaluate the level of risks and incidents they could face. To mitigate such risks, companies need to carefully assess the key indicators of government effectiveness and develop an emergency preparedness plan.