(See Exhibit 1.) All rights reserved. your toughest business challenges, Government professionals This research seeks to understand the sources and consequences of geopolitical risks. The geopolitical landscape is shifting rapidly and creates multi-dimensional challenges for global organisations. Strategic and risk management decisions are developed to understand clearly your next geopolitical move to identify both hazards and prospects. Political risk analysis In an era of major geopolitical shifts, where liberal and democratic norms are constantly challenged, companies are increasingly required to factor political risks into their considerations. Companies with robust compliance programs should consider conducting geopolitical risk assessments as part of their regular due diligence workflows. The challenges that geopolitical risks create will get worse. The degree to which banks systematically analyze political risks varies across the industry. The role is responsible for ensuring that the People Safety & Security (PS&S) team are supported by leading Nokia's Crisis Management system in response to physical risks that impact Nokia operations. 3. iStrategic LLC is a Political Risk Analysis and Consulting firm specializing in the Middle East and North Africa region. They will be part of a dedicated team of analysts, who will provide tactical and strategic intelligence monitoring on . Something went wrong. The organization saw a troubling trend in a number of key markets that could potentially threaten its growing cloud-storage business: mounting anxiety on the part of policymakers and customers, who were worried that local governments could access confidential data kept on servers in certain countries. Citigroup, which had been trying to sell its Russian retail operations when the war started, said its potential losses could come to as much as $3 billion, and put aside $1 billion in loan-loss reserves. The Position . The bank also attributed $120 million of a $524 million trading loss during the first quarter to its role as one of the counterparties in a short trade by Chinese metals group Tsingshan that went south amid the market turmoil that followed the outbreak of war. Adaptive artificial intelligence combined with localised geopolitical risk expertise from Control Risks. Krolls assessment analyzed the safety of the clients employees, evaluated local infrastructure and provided regional political and economic outlooks. "Heightened political risk globally raises the threshold for unrest, with implications for shipping, such as the ability to secure crews and access ports safely. Companies with robust compliance programs should consider conducting geopolitical risk assessments as part of their regular due diligence workflows. Not many bankers want to grapple with that shift because it is inconvenient and depressing.. In . Understand counterparty risk with forward-looking analysis of reputational, legal and political risks associated with new or existing partners, Risk Quantification "speed": 600, We help companies anticipate and quantify critical external strategic business risks that might adversely impact their investments, personnel, interests, and assets anywhere in the world. Contact us confidentially if you would like to speak to one of Krolls experienced risk experts about your companys exposure to geopolitical volatility in emerging markets. Providing a regular forum for a board to examine pressure points and operating realities from multiple perspectives and air diverging views doesnt just improve decision making and establish an organizations appetite for riskit helps create consensus across leadership on the issues of the day. In such discussions, its of utmost importance to make sure that all affected geographic regions are represented. Sign in with your username. by By closely monitoring growing public support for greenhouse gas mitigation measures in many countries, for example, a leading oil-and-gas company was able to invest in renewable natural-gas technologies much earlier than its peers. Large US banks were not alone in underestimating the determination of Russian president Vladimir Putin to ignite the biggest European conflict since World War II. Economic uncertainty (32%) and inflation (26%) are among the leading factors underlying supply chain risks. We'll email you when new articles are published on this topic. We support each client's unique risk profile . Tailored, high-impact executive workshops, Speaking engagements and macro strategy conversations. In a world where nationalistic sentiments are on the rise, no country dominates, and regulations and standards are fragmenting, such situations are bound to accelerate. The threat to US dominance and the potential development of what some describe as a bipolar global order, pitting the West against China and Russia, is a risk worrying American policymakers as well. Consider the trade-offs of framing how the company talks about itself, if that narrative could create conflicts with stakeholders, and what the potential remedies could be. Unstable regimes or upcoming elections may also pose a risk as potential new governments may have unfavorable views towards certain foreign firms. Stratfor Worldview is the world's leading geopolitical intelligence platform. We hosted our 6th annual Top 10 Geopolitical Risks event today with KPMG global alliance partner, Eurasia Group, and we highlighted the relevance of the risks Most companies do not have a dedicated team of full-time employees devoted to geopolitical risk management. Geopolitical Risk and uncertainty are major challenges for business operations and frequently listed among the top three risks in major corporate C-suite surveys. Instead, it alleviated the concerns by moving aggressively to open more data centers in customers home countrieswith no negative effect. Major geopolitical events can often arise quickly and unpredictably. Companies should also be vigilant about risks presented by suppliers. ByClint Follette,Marc Gilbert,Ilshat Haris,Michael McAdoo, andPattabi Seshadri. | Learn more about Avery Benton's work experience, education, connections & more by visiting their . As geopolitical events can influence market conditions in industrialized countries just as much as they can impact developing countries, assessing and understanding them through the conduct of an effective geopolitical risk assessment will help mitigate risk exposure. Please try again later. Our methodology allows us to assess differences in operating models and the degree of process maturity relative to industry practices as well as to identify opportunities for improvement. We are constantly searching for overlooked assets where we can navigate the risk, while others are unwilling or unable to, an executive of a private-equity firm with a decades-long record of success in emerging markets told us. In the face of fragmentation and uncertainty, many business leaders are responding by intensifying their focus on resilience. Coco Feng, Chinese president Xi Jinping seeks to rally countrys scientists for unprecedented contest, South China Morning Post, May 29, 2021, scmp.com. The teams can use the relationships that they develop with officials to share the companys perspectives on key issues and gain insights about potential regulatory actions or sanctions that could affect it. One stream is to work for consultancies - i.e. Geopolitical Brunswick Geopolitical brings together individuals with enormous experience and insight, and offers business leaders strategic advice at the highest level on a wide range of global issues and challenges. We call these archetypes holistic-risk evaluators, risk entrepreneurs, systemic-risk managers, and nascent-risk managers. And a narrative that works in one place could inhibit market opportunities in another or create sensitivities among regions. Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. firms, Access global tax, legal, Our intelligence analysts are building on 20 years experience in understanding political risks faced by our clients in insurance and financial services. Leverage unparalleled One Western energy company, for instance, credited the skills and transparency of its government relations staff for being able to operate simultaneously in two Middle Eastern nations despite strong political tensions between the two governments. "dots": false, Human Rights Violations "autoplaySpeed":8000 Henry EnglerThomson Reuters Regulatory Intelligence, The war in Ukraine has shed an unflattering light on the ability of large US financial firms to manage geopolitical risk, a type of risk that relies more on qualitative and subjective analysis than models and spreadsheets. Subscribed to {PRACTICE_NAME} email alerts. SVA. Australia. As one of the country's top political consulting firms, Global Strategy Group has worked with many diverse and high-profile clients to serve a range of unique needs. Coco Feng, Chinese president Xi Jinping seeks to rally countrys scientists for unprecedented contest,. Geostrategic Business Group | EY - Global Close search Trending Why Chief Marketing Officers should be central to every transformation 31 Jan 2023 Consulting The CEO Imperative: How will CEOs respond to a new recession reality? We have developed an analytical tool for assessing an organizations geopolitical risk management practices and opportunity. Please try again later! Industries that are positively exposed to geopolitical risks suffer a decline in investment that is larger than the aggregate effect. Please feel free contact with us if you have any further questions or concerns, Level 1, 102 Bennelong Parkway, In the next two decades, competition for global influence is likely to reach its highest level since the Cold War. We have updated our Privacy Policy and Terms of Use for Eurasia Group and its affiliates to clarify the types of data we collect, how we collect it, how we use data and with whom we share data. Sign in to the product or service center of your choice. The negative effects of climate change and progressively severe and frequent extreme weather events are becoming harder to ignore. For the past three decades, going global meant unlocking specialization and . Full-Time. Country risk mapping. Independent data and analysis for opportunity sizing, local partner selection, government stakeholder assessment and risk assessment. 2 Holding regular briefing sessions with a companys board and senior leaders on relevant geopolitical risks is a key midterm action. According to the World Economic Forum in its 2023 Global . But the discussions often focus on a specific investment, project, or market entry or exit. Clients employees, evaluated local infrastructure and provided regional political and economic outlooks progressively severe frequent. An analytical tool for assessing an organizations geopolitical risk and uncertainty, business... Uncertainty are major challenges for global organisations economic outlooks contest, countrys for! 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