Bermuda has an elevated political risk due to the increase in sovereign non-payment risk, according to a global firm's assessment.Bermuda is one of 12 island nations to have attracted a “sovereign non payment icon” on the Aon Risk Solutions 2011 risk map.Sovereign non-payment risk is defined as the risk that a foreign government will default on its loan or fail to honour other business commitments because of a change in national policy.Aon measured the political risk of 211 countries and territories based on the level of risks such as currency inconvertibility and exchange transfer; strikes, riots and civil commotion; war; civil war; sovereign non-payment; political interference; supply chain disruption and legal and regulatory risk.It ranks countries on a six-point scale from low risk to very high risk. A downgrade – which has happened in the case of Bermuda - indicates that the severity of the risk has heightened, while an upgrade indicates that the risk is less severe.Bermuda was one of 19 countries downgraded on the 2011 map.Quoted on the PR newswire service, Beverley Marsden, associate director of Aon Risk Solutions' Crisis Management Practice said: "The perceived or actual risk of sovereign non-payment continues to be an issue in countries across the globe. For example, we have seen 13 island nations move into a higher risk category this year because of the effect of a decline in tourism on their economy."The negative effects of the global financial crisis impacted the economies of nations with traditionally low levels of risk. Iceland this year became the first Western European country to be downgraded to Medium."This year's map also highlights the continued emergence of several markets in Africa, such as Ghana, Gabon and Nigeria, where more international trade and investment is occurring, leading to a greater need for political risk insurance cover."Commenting on today's news, Governor Sir Richard Gozney said: “Aon appear to have taken a generically broad brush to a series of small, island economies. It is axiomatic that small economies are likely to be more narrowly based than large economies. I am not sure that we are hearing more than a reiteration of that axiom against the background of the international conditions, which are predicted.Like many others I follow the conclusions drawn by the credit rating agencies, Standard & Poor's, Fitch and Moody's. As far as I remember from their recent reports they have, at least so far, been quite reassuring on Bermuda.”www.aon.com www.prnewswire.com