Corina Muller Monaghan is vice president, Aon Crisis Management, U.S. Political Risk Practice. Institutional Investing in Infrastructure senior editor Drew Campbell spoke recently with Muller Monaghan about the risks infrastructure investors experience in global markets.

What are the risks an infrastructure investor should be aware of today?

The theme of the past several years has been that the global economic recession is having an impact on sovereign risk, whether it is risk of non-payment, or the risk of expropriation of assets, or the risk of cancellation of a concession agreement, or currency inconvertibility, or political violence, including war and security. Those political risks have deteriorated as the economy has worsened — they go hand in hand.

What could happen to investors in a country where the sovereign situation deteriorates?

A lot can happen. Recently, for example, a client of ours was forced to lock down their project