New Risk Management Tool Tracks Terrorist Risk

April 10, 2002 (PLANSPONSOR.com) - Institutional investors will soon be able to tap into a new investment screener - one that highlights firms with ties to terrorist-sponsoring countries or weapons of mass destruction.

Offered by the Investor Responsibility Research Center (IRRC) and the Conflict Securities Advisory Group, the Global Security Risk Monitor is designed to provide a profile of companies whose operations in countries designated by the US government as state-sponsors of terrorism and in possession of weapons of mass destruction pose potential material risks to investors.

The risks posed by these investments may be reputational or financial, according to the firm.  The product will initially identify about 300 stocks, according to a press release.  The product will be officially unveiled later today.

The Global Security Risk Monitor provides:

  • Company Profiles
  • Security Overviews on North Korea, Libya, Sudan, Iran, Iraq and Syria
  • Overview of Proliferation of Weapons of Mass Destruction and Ballistic Missile Delivery Systems
  • Sectoral Security Analyses
  • List of companies involved in each of the six countries designated by country
  • List by company of the countries in which they operate 

The Investor Responsibility Research Center provides independent research on corporate governance and proxy voting issues, while Conflict Securities Advisory Group researches global security-related risk factors in the US and overseas markets. Both firms are based in Washington.

MORE about the product at http://www.irrc.org/products/Global_Risk.html

A sample report is at http://www.irrc.org/products/RptSample.pdf

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