The 9/11 terrorist attacks. Dock strikes in California. SARS. Cote d'Ivoire's civil war. Violent protests in the Niger Delta. Each of these dire events highlights the cost of supply chain disruption. The impact of these occurrences -- and the ongoing threat of political, social and economic instability around the world -- is among the facts examined by Aon Trade Credit in its yearly evaluation of the world's political risk exposures.

(Logo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO )

On February 1 in New York, Aon's trade credit and political risk experts will make public their annual analysis of the world's trade credit and political risk hotspots as illustrated in the 2005 Political and Economic Risk Map. Aon unveils its Political and Economic Risk Map each year to rate the economic, currency and political risks of doing business in more than 200 territories worldwide. "If a country downgrades, there can be serious economic consequences," according to Aon Trade Credit U.S. Managing Director, Bryan Squibb. "Banks must deal with defaulting clients and a lack of hard currency. U.S. exporters into these regions must deal with Sarbanes-Oxley requirements. Buyers of imported goods must deal with the potentially grave risk to their assets."

This year Aon's Trade Credit experts have developed a new Supply Chain Risk Index measuring a company's vulnerability to key threats to their global supply chains. According to the new Index, of the more than half a trillion dollars worth of goods and services the U.S. imported from 50 countries in 2004, close to $312 billion is at risk because of political and economic instability. This estimate is likely to grow in 2005 as firms continue to integrate and consolidate their supply chains.

Dr. Michel Leonard, Aon Trade Credit's chief economist, says, "Even in a post-Sarbanes-Oxley world, risk managers and board members can underestimate the financial threat posed to a firm's balance sheet, assets, and revenues by supply chain disruption. For example, as South Korea accounts for nearly half of the world's production of computer chips, severe tensions on the Korean peninsula could throw the high-tech industry into turmoil with repercussions on trade throughout the region, including trade disruptions between the U.S. and China."

Aon's Index also ranks the top 50 countries at risk for supply chain disruptions. The list includes Nigeria (High), China (Medium High), India, (Medium), and South Korea (Medium). Some of the countries with lower risk include Mexico (Medium Low), Brazil (Medium Low), and Taiwan (Medium Low). While the U.S. received a "Low" risk ranking, the ongoing threat of terrorism and its potential impact on trade flows or a repeat of labor strikes at California's ports indicate ongoing concerns which should not be overlooked.

To further quantify a firm's vulnerability to supply chain disruptions, Aon Trade Credit's National Director of Political Risk, John Minor, says risk managers can take advantage of Aon's Supply Chain Vulnerability Audit. "The Audit," he says, "provides risk managers, CFOs, and board members a systematic and financial review of a firm's supply chain vulnerability, reflecting the ultimate impact of supply chain disruptions to a firm's bottom line."

Aon Corporation (NYSE: AOC) ( http://www.aon.com/ ) is a leading provider of risk management services, insurance and reinsurance brokerage, human capital and management consulting, and specialty insurance underwriting. The company employs approximately 51,000 professionals in its 600 offices in more than 120 countries. Backed by broad resources, industry knowledge and technical expertise, Aon professionals help a wide range of clients develop effective risk management and workforce productivity solutions.

NOTE TO EDITORS: Aon's Trade Credit and political risk specialists unveiled the 2005 political and economic risk map spotlighting risks and trends in the Middle East, Russia, China and elsewhere at an 11:30 a.m. EST press conference on Tuesday, February 1, 2005 at the New York Stock Exchange, 2 Broad St., Room 632.

   Contacts:
   Al Orendorff        Anne Kelly            Jennifer Schoenherr
   (312) 381-3153      (312) 381-2670        (312) 755-3537
   http://www.aon.com/newsroom

This press release contains certain statements relating to future results, which are forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from either historical or anticipated results, depending on a variety of factors. Potential factors that could impact results include the general economic conditions in different countries around the world, fluctuations in global equity and fixed income markets, exchange rates, rating agency actions, resolution of pending regulatory investigations and related issues, including those related to compensation arrangements with underwriters, pension funding, ultimate paid claims may be different from actuarial estimates and actuarial estimates may change over time, changes in commercial property and casualty markets and commercial premium rates, the competitive environment, the actual costs of resolution of contingent liabilities and other loss contingencies, and the heightened level of potential errors and omissions liability arising from placements of complex policies and sophisticated reinsurance arrangements in an insurance market in which insurer reserves are under pressure. Further information, concerning the Company and its business, including factors that potentially could materially affect the Company's financial results, is contained in the Company's filings with the Securities and Exchange Commission.

Photo: http://www.newscom.com/cgi-bin/prnh/20041215/CGW049LOGO
AP Archive: http://photoarchive.ap.org/
PRN Photo Desk, photodesk@prnewswire.com

SOURCE: Aon

CONTACT: Al Orendorff, +1-312-381-3153, Anne Kelly, +1-312-381-2670, or
Jennifer Schoenherr, +1-312-755-3537, all of Aon,
http://www.aon.com/newsroom

Web site: http://www.aon.com/