Brexit. The U.S. Election. Italy's Referendum. Politics shook up markets and the world in 2016. However one expert suggests how the political risk factor could escalate even further in 2017.
"I think that this year is probably the biggest year for political risk since the end of the World War II," Brian Klaas, fellow in Comparative Politics at London School of Economics, told CNBC Wednesday.
"I think because there are so many moving parts at once, that it's going to be very difficult to control them."
Even though they happened in 2016, events like Brexit and the U.S. Election could trigger more questions and uncertainties for the world going in to 2017.
Not only are leaders and investors waiting to see what kind of "Brexit" the U.K. will get in its negotiations with the rest of the European Union and the outcome of several key elections in 2017; but the world is in limbo over what will happen when Donald Trump takes to the White House.
"You're going to have probably unrest in the U.S. – people are not just going to roll over and accept some of the changes that are occurring. You're having a president who is extremely willing and I would say reckless at poking a sleeping dragon in China, on the global stage," said Klaas.
Expanding upon the U.S.' relations with other countries, Klaas went on to add that a global re-balancing of power that involves Russia and the U.S. becoming a lot friendlier, could create "so much volatility and change in the rest of the world, that it would actually potentially become extremely disruptive and create risks elsewhere that were not anticipated."