Indeed, in its most recent geopolitical risk dashboard, the BlackRock Investment Institute put a technological decoupling between China and the United States as the third highest risk, with a widening of the conflict in Ukraine between NATO and Russia and major cyber-attacks causing significant damage to infrastructure and financial markets seen as the top two risks. Some of these political consulting clients include: Airbnb. 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. Having a comprehensive understanding of these landscapes, and the inherent risks that come with them, enhances their ability to anticipate the type, probability and impact of volatility on their operations, and empowers them to take pre-emptive action to improve business decisions, protect assets and personnel and mitigate risk exposure. Many governments have introduced laws requiring companies to take actions to mitigate the risk of adverse human rights impacts. Sorry, something went wrong. Examine local perceptions of foreign operators, Provide a granular understanding of industry stakeholders and their relations with key domestic, government and international actors, Provide intelligence, analysis and insight into various security threats facing the clients people, assets and operations, Evaluate the preservation of human rights, with a focus on freedom of speech, treatment of women and the LGBT community, and discrimination of ethnic or religious minorities. {"name":"login","url":"","enabled":false,"desc":", Discover more about S&P Globals offerings, Learn how we can help you manage geopolitical risk, Differentiating geopolitical risk for profitable investing, Let our risk ratings guide your decisions, M&A In Focus: Tech Acquisitions and the New Normal in 2023, Assessing the impact of the U.S. Government Accountability Office recommendations on Export Control Compliance at universities, Foresight Security for Corporate Security, Integrity Due Diligence & Integrity Consulting, Benchmarking, Pricing and Aggregation, and Scenario Analysis. These organizations take many forms. Sign in to the product or service center of your choice. Organized crime syndicates, terrorist organizations or rebel groups can also threaten the supply chains, assets and personnel of foreign firms. New York NY 10055. The Company: International Consulting Company is a global consulting firm based in Hong Kong. Today, the company has offices in New York, Washington, and London, as well as a network of experts and resources around the world. Yet, companies find Geopolitical Risk difficult to fully understand and even more challenging to manage. Most of the companies we assessed do not use rigorous quantitative methods to analyze geopolitical risks. Reputational risk could be amplified if any or all of these risks are not mitigated properly. Learn More link icon.
Get the latest news and intelligence on global issues impacting business, politics, economics, military, security and energy. Kroll OnTrack Inc. or their affiliated businesses. In such discussions, its of utmost importance to make sure that all affected geographic regions are represented. Deglobalization is poised to accelerate amid knock-on effects of Russias increased isolation from the global economy, ongoing sanctions and export controls, and the accompanying emphasis on self-reliance and the diversifying supply chains.. Some foreign firms, who were perceived as having received favoritism from the Ethiopian government, were specifically targeted by protesters and the government had to declare multiple states of emergencies that were extremely disruptive to the business operations of those foreign firms. Prudent geopolitical risk management also requires understanding how to deal with issues that cross borders. Boston Consulting Group is an Equal Opportunity Employer. One test could explore the conditions in which the company may be compelled to ring-fence its IT infrastructure (to protect against cyberattacks or comply with regulatory requirements) or split off its business in a particular region. Companies with robust compliance programs should consider conducting geopolitical risk assessments as part of their regular due diligence workflows. Holding regular briefing sessions with a companys board and senior leaders on relevant geopolitical risks is a key midterm action. Note: Political risk consulting firms specializing in analyzing the business risk presented by the political environment in a region or country--including but not limited to regulatory risk in particular sectors, risks of appropriation or nationalization, and broader geopolitical risks. A large organization is likely to have stakeholders with differing cultural reference points and opinions on issues such as human rights and privacy. Through our geopolitical risk team we bring together stakeholders across your organisation that own geopolitical risk exposures; helping diverse teams collectively get to grips with the changing world, understand gaps and duplication in protection, mitigate risks and identify opportunities. Whats more, the COVID-19 pandemic has brought geopolitical risk factors into sharp relief. An escalation of geopolitical events can lead to outright wars . "autoplaySpeed":8000
Meanwhile continuing shortages of raw materials (39%), logistics and warehousing (35%) and components (33%) are all . Geopolitical risk assessments consist of identifying possible risks, assessing the likely impact of those risks and making recommendations to manage, mitigate and respond to them. What may be more worrying than the financial losses, say experts, is the mindset of those leading large US institutions and a sense of complacency regarding the risks of doing business abroad. People may worry that a company will hold itself to different standards in different regions. Risk Consulting. CFOs' assessments of the economy in Q3. Taking a bionic approach to digital transformation can lead to successful business outcomes. Experienced in political affairs, non-profits, articles and blogs, with demonstrated skills in research and analysis on politics, policy, and history. 5-minute read. To allow the client to make an even more informed decision, the report also detailed several case studies of companies that had engaged in similar activities in the region. 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. The report draws on the survey results from nearly 700 experts and decision-makers globally who were asked about their concerns . As a result, the company was able to significantly expand its cloud business and gain advantage over competitors that were slower to act. 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. CFO sentiment got off to a very strong start in the first quarter of 2017. Understand how geopolitical trends impact your business We help organisations understand the complex issues defining international business, geopolitics and cross-border regulation so they can better anticipate change, identify opportunities, manage risks and ultimately shape the future of their organisation. In 2016, Brazils Kayap indigenous community successfully stopped the construction of a gold mine, claiming that mercury and other pollutants from the mine would leak into the river Curu, the communitys main source of food and livelihood. Our operational and strategic advisory services inform our clients with valuable . Geopolitics, corporate governance and ESG. I would like to see us preserve the benefits of deep economic integration with China, not going to a bipolar world, but clearly thats a danger that we need to address.. The value of being able to anticipate, synthesize, and harness risk for potential gain has never been greater. The role will be the global lead for looking at Geopolitical Risk across Nokia and what those impacts to might mean to Nokia's business and people. trust us to help them make informed decisions, Professional services Not surprisingly, several oil and gas companieswhich often make large, long-term investments in high-risk countries amid frequently shifting environmental-protection policiesfall in this category. But the discussions often focus on a specific investment, project, or market entry or exit. From project or investment selection, through market entry and ongoing risk monitoring and management, we can support you with actionable intelligence, business relevant forecasts, and tailored solutions. Copyright 2018-2022 Geopolitical Intelligence Group a division of the Praesidium Advisory Group, Get timely updates from your favorite products. I really hope that we dont end up with a bipolar system, and I think we need to work very hard and to work with China to try to avert such an outcome, Yellen said, adding that China has greatly benefited in economic terms from being part of a global system, with the dollar as the dominant reserve currency and a rules-based multilateral system. Russia's invasion of Ukraine has .
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Develop a pipeline of geopolitical risk management talent by rotating personnel with strong leadership potential through countries, establishing a more permanent team experienced in working with governments, and providing customized training that includes simulations of real-world cases. Human Rights Violations
Key features of our political risk service include: Political risk analysis and assessments. Sign in with your username. Internationally it poses increasing management challenges, particularly at board level. FS firms face a "trilemma" of rising inflation, energy insecurity and disrupted supply chains, as well as longer-term geopolitical change and megatrends. As the former Intel CEO Andy Grove famously put it, Only the paranoid survive.
Operations in countries with poor human rights records can cause supply chain disruptions but can also lead to reputational damage and give rise to class action lawsuits, public boycotts or stockholder divestment campaigns. Geopolitical risk is the number one global corporate risk. Such a test would include a time frame for execution and possible technical options. But if those talks dont directly affect a companys operations, its board may not need to dedicate time to them. 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. 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. They view disruption strategically, as a source of opportunity; embed risk management practices across the organization; and use advanced geopolitical-risk-monitoring tools and processes. It is by no means certain that they are ready for the next major crisis, experts say. The negative effects of climate change and progressively severe and frequent extreme weather events are becoming harder to ignore. Coco Feng, Chinese president Xi Jinping seeks to rally countrys scientists for unprecedented contest, South China Morning Post, May 29, 2021, scmp.com. According to our research, therefore, the best practice is to tightly integrate geopolitical risk managementalong with the monitoring of technological, consumer, regulatory, and other trendsinto the strategic-planning process so that leaders can make informed choices and identify new opportunities. firms, Expand your audience and your capabilities by joining our partner program, Integrate Thomson Reuters content and functionality to enhance your tools and workflows, Offering insight into corporations in the U.S. and abroad, Insights on issues concerning environmental, social, and governance topics, A look into the inner workings of government and the courts, Legal coverage focusing on the business and practice of law, Featuring an expanded insight into the world of tax professionals, Technology and innovation resource center, Exploring how technology and innovation will influence the evolution of future services, About Thomson Instead, boards can dedicate regular standing time to analyzing how to respond to the geopolitical risks that their enterprises face as part of a broader board effort to build more resilient companies. Questions to ask about key business risks arising from geopolitical and related crises Strategic, operational, financial and compliance risks are common level-one risk categories that board members and management need to consider. "fade": true,
11 Jan 2023 CEO agenda Six ways asset managers can prepare for an uncertain future 2 Feb 2023 Wealth and asset management Companies are walking a geopolitical tightrope. Expropriation
Banks are used to quantifying risks that can be measured, with long, historical data series serving as inputs to create future scenarios. Ian Bremmer is the president and founder of Eurasia Group, the leading global political risk research and consulting firm started in 1998. strategy. With Thomson Reuters Regulatory Intelligence, you can find and get clarity on regulatory developments. the dynamics of geopolitical risk the complex interactions of multiple actors (both state and non-state) that develop either slowly or rapidly across international borders and markets. Stay connected with us and get all latest updates. Any copying or distribution of Eurasia Group materials is prohibited. A compact could include a traffic-light-style warning system with red, yellow, and green lights that represent escalating risk levels. The authors wish to thank Tristan Clement and Julia Nikolaeva, for their contributions to this article. Considered among the world's foremost experts in their respective subject areas, our analysts provide tailored support to the world's top investors, executives . Business strategy and operational efficiency require constant evaluation in a complex and often volatile environment. Political risk consulting firms. Marcin Grajewski, The EU strategic autonomy debate: What think tanks are thinking, European Parliament Think Tank, March 30, 2021, europarl.europa.eu. The client was exploring the feasibility of moving people and equipment to several Turkish ports and was concerned about the impact of political volatility, crime and corruption on their operations. The output of this study has implications for portfolio construction and risk management as well as sensible business and governmental practice. 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. Sydney Olympic Park NSW 2127
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