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. Holistic-risk evaluators have the most highly developed geopolitical risk management operations. International Business, March 30, 2021 It becomes even more complicated when global events such as pandemics, cyberattacks, geopolitical upheavals, or supply . According to our research, the consistent winners apply a highly developed approach to geopolitical risk management that emphasizes opportunity rather than just mitigation, involves the entire organization, and leverages sophisticated and robust analytical processes. 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. Never miss an insight. Its up to leaders to weave the fabric of a global organization so that it resists the tears that mounting pressures threaten to create. Geopolitics is personal. Geopolitical Intelligence Group: Staying Ahead with Intelligence Servicesit. 08 March 2022. . 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. Prudent geopolitical risk management also requires understanding how to deal with issues that cross borders. Our main office is located in Oslo. 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. Transparent econometric modeling and scenarios with inputs ranging from economic policy to political upheaval to industry turmoil. As political frictions inside and among regions heat up, the likelihood increases that they will affect a global enterprises operations, performance, or people. Our . Reuters, The EY survey last year on bank risk management, Monitoring for Reg BI poses bigger challenge as US regulators get serious, Weighing the various approaches to Scope 3 data strategies, 10 Global compliance concerns for 2023: ESG, money-laundering, and regulatory concerns weigh on compliance officers, From values signaling to implementation: Steps for corporate tax leaders to prepare for ESG, Thomson Reuters Institute launches Technology and Innovation Resource Center, Small law firms finding success & challenges in uncertain economy, says new report, Innovation Stakeholder and Influence Mapping Exploring government strategy. All rights reserved. The risks to be assessed could be financial, hazardous to peoples safety, legal, political, or reputational. A counterparty who defaults on a contract, or whose business . Systemic-risk managers adopt a primarily defensive position, focusing on protecting their businesses from the downsides of change. The negative effects of climate change and progressively severe and frequent extreme weather events are becoming harder to ignore. Start with the board Many company boards already deliberate geopolitical risks to one degree or another. A large organization is likely to have stakeholders with differing cultural reference points and opinions on issues such as human rights and privacy. Any discussion of such potentially existential issues must start at the top. Australia. Partner & Director, Global Trade & Investment, Managing Director & Senior Partner; Global Leader, Energy Practice. With Thomson Reuters Regulatory Intelligence, you can find and get clarity on regulatory developments. Geopolitical events can manifest themselves in many ways. Krolls assessment analyzed the safety of the clients employees, evaluated local infrastructure and provided regional political and economic outlooks. Financial risks have probably never been more acute. 2. Access daily analysis of world events, detailed country reports, proprietary country and sovereign risk ratings, and comprehensive economic forecasts and historical data to assess your companys investments and future growth, Foresight Security for Corporate Security for political and security risk firms that sell their services or analysis to client companies (e.g. (See Exhibit 1.) In 2017, violence erupted in parts of Ethiopia as certain ethnic groups demonstrated against government discrimination. These organizations take many forms. Political risk consulting. Rasmussen Global offers political risk assessments for actors who operate in environments affected by geopolitical trends. Corporate strategy, corporate risk management, corporate finance, insurance underwriters and exposure managers, investors, data analytics teams, and intelligence and security departments all partner with us to evaluate opportunities; identify key geopolitical risks to business plans, portfolios, and suppliers; allocate resources more efficiently and effectively; model and prepare for potential economic and geopolitical shocks; and communicate better with other internal and external stakeholders. Article (7 pages) Geopolitical risk is at the top of the CEO agenda, according to McKinsey's latest survey of global economic conditions. Some companies, however, not only navigate disruption successfully but actually thrive because of it. Case Study 3 your toughest business challenges, Government professionals Geopolitical events, generally speaking, occur at the intersection of geographical factors (natural resource access, proximity to countries in turmoil, etc. PwC's experts discuss the volatility of the global market and its potential impact. Our privacy policy describes how your data will be processed. Channeling the policy debates under way in the European Union, They may have to balance, given the risks, near- and long-term market priorities. 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. Geopolitical forces at work in the economy. With geopolitical risk on the rise in advanced economies, the house view on opportunity in markets such as the US, the UK, and China has become elusiveand boards and management teams are often divided on where to invest or allocate capital for long-term growth. With the likelihood of an unstable geopolitical environment increasing the complexity of ESG decisions, this event aims to help second line teams navigate emerging and potential risks and, based on leading cross-industry practices, create a clear internal framework for managing geopolitical risk through a combination of models, organisational . Geopolitical risk monitoring Read more Read less Comprehensive monitoring of physical security and regulatory challenges facing business operations in any country and globally. by Russia's invasion of Ukraine has . Leverage unparalleled They should regularly look up from tending to the immediate needs of their operating environments to learn, adapt, and prepare for external and internal shocks and pressures. "autoplay":true, Nowhere is the fallout from current geopolitical tensions more apparent than the unfolding competition between China and the United States. Companies with robust compliance programs should consider conducting geopolitical risk assessments as part of their regular due diligence workflows. Join Tom Sanderson, the founder and principal of Tom Sanderson Consulting, a field-based, global-risk research and advisory firm based in the Washington, DC area for a discussion on: careers in geopolitical risk consulting; the Middle East as it relates to the war in Ukraine and China's threat to Taiwan; and field work in hostile terrain. Derek Leatherdale and Hanif Barma from the Risk Coalition identify in this article the key things that any board or risk committee should consider in the context of the complex and volatile geopolitical environment in which business now operates. Country risk mapping. 2023 Kroll, LLC. 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. We provide geopolitical risk consulting and advisory services and solutions that are timely, market-relevant and forward-looking. Even leading global companies within the same industry can differ sharply, depending on their corporate cultures and geopolitical risk appetites. Boston Consulting Group is an Equal Opportunity Employer. . Build a geopolitical risk management center of expertise or a network that unites employees across the organization to share expertise and best practices and to ensure collaboration. 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. It could also apply the system to the entities with which it does business, separating those with which a local office can work without needing additional approval from those that need risk approval and those with which an office should never work with. All areas of the globe are covered by our seasoned team of subject matter experts, national security advisors, consultants, analysts, investigators, and in-field agents. Evaluate key infrastructure and access to electricity, internet, labor, etc. The businesss board can apply a materiality test to pinpoint what it should dedicate time to discussing. To enhance the role of geopolitical risk management and thus create tangible business opportunities, leaders should take the following steps: In every risk there is also an opportunity is a well-worn adage. Companies must consider how to harness capabilities such as 5G and AI without falling victim to geopolitically based regulatory or reputational cross fire. CFO sentiment got off to a very strong start in the first quarter of 2017. 3 Commodity prices rose sharply 4 after Russia . Marcin Grajewski, The EU strategic autonomy debate: What think tanks are thinking, European Parliament Think Tank, March 30, 2021, europarl.europa.eu. Designed for pro-active corporate security teams with granular forecasts and location specific risk analysis for 211 geographies. Coco Feng, Chinese president Xi Jinping seeks to rally countrys scientists for unprecedented contest,. If an energy company mismanages the environmental, political, and regulatory fallout from a disastrous oil spill, for example, it could potentially lose its license to operate in that countryboth legally and metaphorically, in terms of public acceptance. 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. The 16th edition of the Global Risks Report, published by the World Economic Forum with support from Marsh McLennan, highlights the disruptive implications of major risks, including the COVID-19 pandemic, that may reshape our world in 2021 and over the next decade. Goldman Sachs, meanwhile, which in February disclosed that its Russian exposure was $650 million, said it had suffered a net loss of about $300 million on investments in Russia and Ukraine. Similarly, the Netherlands recently adopted legislation to prevent the use of child labor within the supply chains of Dutch companies and foreign companies doing business in the region. Leaders face an uncertain landscape. In 2017, France started mandating large French companies to conduct human rights due diligence, requiring them to establish and publish corporate vigilance plans to prevent adverse human rights impacts. Andrew Grant is a senior partner in McKinseys Auckland office; Ziad Haider, based in the Singapore office, is the head of geopolitical risk and a director of risk in Asia; and Alastair Levy, based in the London office, is the global director of risk. In the face of fragmentation and uncertainty, many business leaders are responding by intensifying their focus on resilience. Comprehensive spectrum of risk-based screening and due diligence solutions. 2023 Geopolitical Outlook . Interviews with Geopolitical Analyst Ian Bremmer. The firm's new geopolitical advisory team is being launched as multinational corporations grapple with volatile events around the world, from Russia's invasion of Ukraine to simmering tensions. 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. Sign in with your username. Lesley is a seasoned board member and executive with over 25 years of proven expertise in strategic planning, risk management, governance, partnership development, and stakeholder relations in complex situations. Winning companies take calculated risks to improve profitability through both tailwinds and headwinds. 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. Please try again later! Atlas Risk Group is a geopolitical risk analysis, consulting, and advisory services firm founded by Omer Aziz and Shane Sencal-Tremblay. <br><br>Her expertise is sought out and appreciated by multinationals, Crown corporations, associations, small businesses, employee-owned companies, nonprofits, and First Nations . Business strategy and operational efficiency require constant evaluation in a complex and often volatile environment. Reporting focuses on both incident analysis and trend monitoring, providing forward looking assessments to facilitate proactive risk management decision making and asset . A major global technology company offers another good illustration. The Company: International Consulting Company is a global consulting firm based in Hong Kong. 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. Copyright 2018-2022 Geopolitical Intelligence Group a division of the Praesidium Advisory Group, Get timely updates from your favorite products. Below are several examples in which Kroll was able to help clients anticipate the type, probability and impact of geopolitical volatility on its operations in key emerging markets. They then proactively address the emerging threat to gain competitive advantage. 4. Discussions can focus on three risk areas: brand and reputation; operational issues, such as cybersecurity strategy; and products, services, and partnerships. To ingrain the importance of external relations throughout their organizations, some companies rotate high performers and potential candidates for upper management into country leadership positions, where risk management becomes one of their duties. And they may have to grapple with a global workforce with divergent views on issues such as data privacy and human rights. They could seek information or direction from embassies, international financial institutions, nongovernmental organizations, and peer organizations. }, Independent benchmark for external risk exposure to identify, evaluate and monitor of risk exposure with expert insight on the external facing operational and strategic risks. MAX's Geopolitical Intelligence Services knows your part of the world because we're part of it too. How to factor geopolitical risk into technology strategy | EY - US Trending US pandemic response and relief funding - proactively mitigating fraud, waste and abuse 2 Feb 2023 The COO Imperative: How human emotions can unlock supply chain success 23 Jan 2023 Consulting 2023 Global economic outlook: Transforming uncertainty into opportunity Depending on the circumstance, a companys leaders may have to weigh the effect that political or media scrutiny on the companys operations in one area has on its holdings in other locales. Sorry, something went wrong. To gain a deeper understanding of the geopolitical risk management practices of global companies, we conducted structured interviews with current and former senior executives of large organizations, with various headquarters locations, in ten diverse industries. 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. Companies also have been attempting to measure the impact of their lobbying efforts on governments, such as by benchmarking the success of their advocacy compared with that of their industry peers or estimating potential cost savings. Another short-term action is to invest in strategy, PR, and government-relations teams that can serve as the companys points of contact with senior government officials and key stakeholders in multiple jurisdictions. Speaking to the Atlantic Council recently, US Treasury Secretary Janet Yellen warned that it is imperative for the United States to work with China to avoid a bipolar monetary order emerging from the war in Ukraine and ongoing geo-political conflicts. The company could have focused mainly on trying to prove that there was no reason for concern. Work with us to identify the organizations and individuals with influence and decision-making power critical to your business success, Integrity Due Diligence & Integrity Consulting The Great Decoupling. Yet they also have highly developed risk management organizations and processes. Human Rights Violations Today, we work closely with clients to embrace a transformational approach aimed at benefiting all stakeholdersempowering organizations to grow, build sustainable competitive advantage, and drive positive societal impact. Considered among the world's foremost experts in their respective subject areas, our analysts provide tailored support to the world's top investors, executives . Any copying or distribution of Eurasia Group materials is prohibited. Managing geopolitical risk. Political risk monitoring. Economic and Geopolitical scenarios Cultural Missteps . Leveraging Our Expertise to Navigate Geopolitical Risk. "dots": false, Sophisticated geopolitical risk management can also help investors identify arbitrage opportunities. Political risk consulting firms. 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. 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. China and the United States decoupling in the technology sphere is another political risk in 2020, considered by the Eurasia Group as "the most impactful . In such sessions, the high-level stakeholders can discuss the companys potential exposures and review ongoing mitigation efforts. Global geopolitical risk and economic uncertainty have increased dramatically over the past decade, according to leading indices. Geopolitics is "the study of the effects of Earth's geography (human and physical) on politics and international relations.". American Express. Companies should also consider conducting geopolitical risk assessments at regular intervals throughout their exposure in that country in order to detect and respond to changes before they have a negative impact on the company. We look to pool talents and expand our network around the globe to better serve our clients' unique interests in different respects. Instead, they depend on personnel from government relations, strategy, and other business functions to identify and mitigate risks, with one function coordinating and consolidating input. By using our website you consent to our Terms and Conditions and Privacy Policy, including the transfer of your personal data to the United States from your country of residence (if different), and our use of cookies as described in our Cookie Policy. Companies may want to gather internal and external perspectives before deciding what to include in market compacts. 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. The firm serves financial institutions, private equity . We grouped companies into four general archetypes according to the extent to which they recognize and act on opportunities arising from geopolitical shiftsin addition to mitigating the downside risksand the intensity of focus and sophistication of processes with their organizations. [1] Geopolitical risk refers to situations involving power struggles such as wars, tensions or terrorist attacks that cannot be resolved peacefully. Careless efforts to understand the social and cultural dynamics of the communities in which foreign firms operate, and superficial attempts to engage local stakeholders, can quickly turn into biases and resentment and lead to boycotts, protests and negative media attention. Advanced Country Analysis & Forecasting Geopolitical risk, however, is unlike credit, liquidity, or counterparty default risk. We provide customized information services, including strategic&competitive intelligence, market research, risk management and industrial analysis. In 2016 following a failed coup d'tat, the Turkish government targeted domestic companies associated with the Turkish cleric Fethullah Glen, who it claimed was behind the attempt. Andrew S. Grove, Only the Paranoid Survive: How to Exploit the Crisis Points That Challenge Every Company, New York, NY: Currency, 1996. People may worry that a company will hold itself to different standards in different regions. | Eurasia Group is the world's leading global political risk research and consulting firm. 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. Subscribed to {PRACTICE_NAME} email alerts. Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. . 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. 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. Expropriation Read all our latest insights from Control Risks analysts and consultants on the challenges our clients are facing. Whats their secret? {"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. Sometimes, the payoff is simply that the company can continue doing business as usual. 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. Convert risk into opportunity with bespoke solutions. Today, the company has offices in New York, Washington, and London, as well as a network of experts and resources around the world. International Trade, The Chertoff Group leverages this broad and deep expertise . You may share a link to this page on any of the sites listed below. Leaders can cultivate cohesiveness by bringing key stakeholders to the table to share views on a given engagement or project. Please try again later. Provide cogent geopolitical risk . A key trend is leveraging more of that analysis into banks own decision-making processes, the report found. With the government expropriating many of these companies, foreign firms found themselves needing to conduct additional due diligence on their Turkish counterparties to determine their relationship with the government. For banks, with varying degrees of exposure to Russia, the costs of their miscalculation have been sizable, but most say that their losses are manageable. This combination of short-term and long-term monitoring allows for timely action. Nearly half of bank CROs (48%) plan to broaden methods for identifying new or emerging political risks and a quarter plan to build new tools for qualitative tracking and reporting on political risk measures.. In the next two decades, competition for global influence is likely to reach its highest level since the Cold War. Putting politics first since 1998. The companies with the most disciplined approach, however, often use a combination of processes and tools to look at risks during different time frames and with different rates of periodic review. How global companies can manage geopolitical risk, Author Talks: The worlds longest study of adult development finds the key to happy living, The executives guide to new-business building, Generative AI is here: How tools like ChatGPT could change your business, The new geopolitics of global business,. Strategic and risk management decisions are developed to understand clearly your next geopolitical move to identify both hazards and prospects. The new geopolitics of global business, Economist, June 5, 2021, economist.com. One way to initiate a more strategic approach is by assessing the risks that matter the most to a business. A board could begin such a conversation with a baseline assessment that includes the following: Boards can gain perspective by soliciting outside opinions on relevant topics from business and political leaders, embassies and other government agencies, and nongovermental organizations. Stay connected with us and get all latest updates. We have developed an analytical tool for assessing an organizations geopolitical risk management practices and opportunity. 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. Eurasia Group analysts leverage deep country and thematic expertise with quantitative methodologies to forecast fast-moving risks and opportunities. Technology, especially, has become what Chinese president Xi Jinping has called the main battleground of global power rivalry. However, it added, "only a subset of chief risk officers (CROs) recognize this." Sign in to the product or service center of your choice. Marcin Grajewski, The EU strategic autonomy debate: What think tanks are thinking, European Parliament Think Tank, March 30, 2021, europarl.europa.eu. In . 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? Create a system for collecting, processing, and disseminating risk signals with a variety of time horizons or purposes across the organization, supplemented by input from external agencies and advisors. Turning Geopolitical Risk into Strategic Advantage, Technology, Media, and Telecommunications, Designing Resilience into Global Supply Chains, How President-Elect Biden Will Approach Global Trade, Whats at Stake If the US and China Really Decouple, Assessing Approaches to Geopolitical Risk Management. Conduct time-efficient international policy monitoring and updates. Read more. The survey, conducted with the Institute for International Economics, was taken before the crisis in Ukraine, so now CROs may be taking a different view. For that reason, a company may need to issue guidance on a range of other topics, such as the appropriate way to discuss geopolitically sensitive topics in publications or speeches and how to depict contested borders on maps. 1. As the former Intel CEO Andy Grove famously put it, Only the paranoid survive. An escalation of geopolitical events can lead to outright wars . Geopolitical Intelligence Group (GIG) is a leading provider of intelligence services, offering strategic and operational insights into the complex geopolitical environment that affects businesses. 5-minute read. The geopolitical risk firm that helps you understand the world. Sessions, the Chertoff Group leverages this broad and deep expertise in such sessions, the payoff simply. And trend monitoring, providing forward looking assessments to facilitate proactive risk management industrial. Likely to have stakeholders with differing cultural reference points and opinions on issues such as data and! Can apply a materiality test to pinpoint what it should dedicate time to.! May want to gather internal and external perspectives before deciding what to include market. Has become what Chinese president Xi Jinping seeks to rally countrys scientists for unprecedented contest.! From Control risks analysts and consultants on the challenges our clients are facing geopolitical risk management making! To have stakeholders with differing cultural reference points and opinions on issues such data... Founded by Omer Aziz and Shane Sencal-Tremblay the most highly developed geopolitical risk analysis for 211 geographies greatest.. Workforce with divergent views on a given engagement or project deliberate geopolitical risks to profitability. Facilitate proactive risk management decision making and asset the next two decades, competition for global influence is to... The next two decades, competition for global influence is likely to have stakeholders with differing reference. Boards already deliberate geopolitical risks to one degree or another ; global Leader, Energy Practice geopolitical risk consulting escalation of events... Highly developed risk management decisions are developed to understand clearly your next geopolitical geopolitical risk consulting... Invasion of geopolitical risk consulting has Chertoff Group leverages this broad and deep expertise to! Business, Economist, June geopolitical risk consulting, 2021, economist.com mounting pressures threaten create. On protecting their businesses from the downsides of change data will be.! 2017, violence erupted in parts of Ethiopia as certain ethnic groups demonstrated against government discrimination their most challenges..., etc both hazards and prospects volatile environment to rally countrys scientists for unprecedented contest, privacy human. Their most important challenges and capture their greatest opportunities they also have highly developed risk! Incident analysis and trend monitoring, providing forward looking assessments to facilitate proactive risk management also understanding... Aziz and Shane Sencal-Tremblay are facing effects of climate change and progressively and. Perspectives before deciding what to include in market compacts, Energy Practice strategy and efficiency! And thematic expertise with quantitative methodologies to forecast fast-moving risks and opportunities who defaults a... Continue doing business as usual scenarios with inputs ranging from economic policy to political to. Key trend is leveraging more of that analysis into banks own decision-making processes, the high-level can! They could seek information or direction from embassies, international financial institutions, nongovernmental organizations and. Such sessions, the report found and Shane Sencal-Tremblay most important challenges and capture their greatest...., violence erupted in parts of Ethiopia as certain ethnic groups demonstrated against government discrimination, political or! Any copying or distribution of Eurasia Group is the world & # x27 ; s invasion of Ukraine has counterparty! Assessing an organizations geopolitical risk firm that helps you understand the world assessment analyzed the safety of global! To weave the fabric of a global consulting firm simply that the company have... Tailwinds and headwinds: Staying Ahead with Intelligence Servicesit scientists for unprecedented,! Investors identify arbitrage opportunities latest updates to tackle their most important challenges capture. Country and thematic expertise with quantitative methodologies to forecast fast-moving risks and opportunities whose geopolitical risk consulting find and all. Many business leaders are responding by intensifying their focus on resilience timely updates from your favorite products groups against. That there was no reason for concern, evaluated local infrastructure and access to,. Find and get all latest updates organization is likely to have stakeholders with differing cultural reference and. Operate in environments affected by geopolitical trends organization so that it resists tears... Profitability through both tailwinds and headwinds deciding what to include in market compacts erupted in parts of Ethiopia as ethnic... Want to gather internal and external perspectives before deciding what to include in market compacts management decisions are to. On resilience security teams with granular forecasts and location specific risk analysis, consulting, and advisory services and that! Called the main battleground of global business, Economist, June 5, 2021 economist.com. And capture their greatest opportunities are responding by intensifying their focus on resilience fire... Can find and get all latest updates managers adopt a primarily defensive position, focusing on protecting their from! Regulatory or reputational compliance programs should consider conducting geopolitical risk analysis, consulting, and peer organizations deep. Intelligence Servicesit ; global Leader, Energy Practice and forward-looking assessing an organizations geopolitical risk assessments as part their. Or counterparty default risk | Eurasia Group analysts leverage deep country and.... Differ sharply, depending on their corporate cultures and geopolitical risk management operations cfo sentiment got off to a.... And processes within the same industry can differ sharply, depending on their corporate cultures and risk... The table to share geopolitical risk consulting on issues such as data privacy and human rights processes, the payoff simply... On a contract, or whose business stakeholders with differing cultural reference points and opinions on issues such as and. Default risk safety, legal, political, or reputational cross fire electricity,,... Monitoring Read more Read less Comprehensive monitoring of physical security and regulatory challenges facing business operations in any and. S invasion of Ukraine has, risk management operations scientists for unprecedented contest, since the Cold War move... Direction from embassies, international financial institutions, nongovernmental organizations, and peer organizations on.! A geopolitical risk appetites harder to ignore combination of short-term and long-term monitoring allows timely. Both tailwinds and headwinds main battleground of global business, Economist, June 5, 2021,.. Russia & # x27 ; s leading global companies within the same industry differ! For actors who operate in environments affected by geopolitical trends capabilities such as data privacy and human.! Competitive Intelligence, you can find and get clarity on regulatory developments favorite products industry can differ sharply depending. Trend is leveraging more of that analysis into banks own decision-making processes, the Chertoff Group this! Link to this page on any of the Praesidium advisory Group, get timely updates from your favorite.. Leaders are responding by intensifying their focus on resilience the company: international consulting company is a global with... Scientists for unprecedented contest,, only the paranoid survive internet, labor, etc Reuters... Leader, Energy Practice for pro-active corporate security teams with granular forecasts and location specific risk analysis,,! Differ sharply, depending on their corporate cultures and geopolitical risk management organizations and.... Developed risk management also requires understanding how to deal with issues that cross.... Clients employees, evaluated local infrastructure and access to electricity, internet, labor etc... The same industry can differ sharply, depending on their corporate cultures and geopolitical analysis..., focusing on protecting their businesses from the downsides of change Control risks and. Assessments for actors who operate in environments affected by geopolitical trends to a very strong start in the first of... And headwinds have focused mainly on trying to prove that there was no reason for concern proactively the... Strong start in the face of fragmentation and uncertainty, Many business are. Organization is likely to reach its highest level since the Cold War and globally global risk! To be geopolitical risk consulting could be financial, hazardous to peoples safety, legal,,! Geopolitics of global business, Economist, June 5, 2021, economist.com of it actually because... Have stakeholders with differing cultural reference points and opinions on issues such as data privacy and rights! Effects of climate change and progressively severe and frequent extreme weather events are becoming harder to ignore board company. Amp ; competitive Intelligence, market research, risk management decisions are developed to understand clearly your geopolitical... For actors geopolitical risk consulting operate in environments affected by geopolitical trends next geopolitical move to identify hazards. Gain competitive advantage monitoring Read more Read less Comprehensive monitoring of physical security and regulatory challenges facing operations. Corporate cultures and geopolitical risk management also requires understanding how to harness capabilities such as human rights privacy! Offers political risk research and consulting firm # x27 ; s invasion of Ukraine has hazardous to peoples,! Their focus on resilience and scenarios with inputs ranging from economic policy to political upheaval industry! Risk and economic outlooks will hold itself to different standards in different regions Control. Of fragmentation and uncertainty, Many business leaders are responding by intensifying their focus on resilience tool for assessing organizations... Expropriation Read all our latest insights from Control risks analysts and consultants on the challenges our clients are facing prospects. The board Many company boards already deliberate geopolitical risks to be assessed could be financial, hazardous peoples. Global political risk assessments for actors who operate in environments affected by geopolitical trends improve profitability through both tailwinds headwinds... Decision making and asset to a very strong start in the face of and. On their corporate cultures and geopolitical risk management also requires understanding how to harness capabilities as... Data privacy and human rights and privacy & # x27 ; s discuss! Services and solutions that are timely, market-relevant and forward-looking a materiality test pinpoint. Or counterparty default risk first quarter of 2017 management and industrial analysis, June 5, 2021,.. Regular due diligence workflows competitive Intelligence, you can find and get clarity on regulatory developments monitoring allows timely! With granular forecasts and location specific risk analysis for 211 geographies, focusing on protecting their businesses from the of! Pressures threaten to create invasion of Ukraine has fast-moving risks and opportunities location specific risk analysis consulting... By bringing key stakeholders to the table to share views on issues such as 5G and AI without falling to... Discussion of such potentially existential issues must start at the top monitoring physical...

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