Sometimes, the payoff is simply that the company can continue doing business as usual. 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. And differences can dissolve into disagreements about risk and Political risk management through context intelligence and strategic planning is at the heart of what we do. Geopolitical risk monitoring Read more Read less Comprehensive monitoring of physical security and regulatory challenges facing business operations in any country and globally. The benefits of using geopolitical intelligence services are numerous, but the most significant include staying ahead of the pack, improving business operations, and ensuring business continuity, and protecting staff while abroad. Read all our latest insights from Control Risks analysts and consultants on the challenges our clients are facing. Geopolitical forces at work in the economy. Minimize risk, optimize strategy, and seize opportunity with Luminae Group Subscribe to our mailing list to receive expert geopolitical intelligence, unparalleled insight, and an insider perspective on global affairs. 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. Companies may want to gather internal and external perspectives before deciding what to include in market compacts. In addition to their normal duties, country chairs are responsible for liaising with all external stakeholdersincluding national and local governments, community organizations, and other enterprises. 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. (See Exhibit 2.). Otherwise, internal fissures can build and burst in a way that damages culture, reputation, and performance. While there is no universal formula for success, building robust geopolitical risk management organizations and processes is key to begin navigating an uncertain world. Strategic and risk management decisions are developed to understand clearly your next geopolitical move to identify both hazards and prospects. Thank you! A major global technology company offers another good illustration. Australia. According to the World Economic Forum in its 2023 Global . Geopolitics is personal. All rights reserved. In extreme cases, a disruptive event can jeopardize an entire business. Start with the board Many company boards already deliberate geopolitical risks to one degree or another. 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. Geopolitical Risk and uncertainty are major challenges for business operations and frequently listed among the top three risks in major corporate C-suite surveys. CFOs' assessments of the economy in Q3. Please try again later! 1. The Geopolitical Analyst (remote) will work closely with our teams to support research and analytical duty upon clients' needs. We study the dynamic effect of industry- and firm-specific geopolitical risk on firm-level investment. Human Rights Violations Independent data and analysis for opportunity sizing, local partner selection, government stakeholder assessment and risk assessment. In volatile times such as these, a companys instinct is to focus on defenseto protect the business from harm. 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.. your toughest business challenges, Government professionals 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 "autoplaySpeed":8000 Those risks could include securing operations and people amid political instability, ensuring that they comply with evolving local regulations in one market, and staying abreast with human-rights considerations in another. As a result, they fail to examine the broader strategic landscape, full range of risk scenarios and consequences, or key decision points. Most companies do not have a dedicated team of full-time employees devoted to geopolitical risk management. Organizations can be prepared to respond to geopolitical risks across multiple time frames. It is by no means certain that they are ready for the next major crisis, experts say. Such a test would include a time frame for execution and possible technical options. Stay connected with us and get all latest updates. Marcin Grajewski, The EU strategic autonomy debate: What think tanks are thinking, European Parliament Think Tank, March 30, 2021, europarl.europa.eu. for broadcasters and publishers, Explore our tax and 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. When retaining consultants, always consider the necessary types of insurance to be required. 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 They then proactively address the emerging threat to gain competitive advantage. 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. 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. 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. But the discussions often focus on a specific investment, project, or market entry or exit. Geopolitical events, generally speaking, occur at the intersection of geographical factors (natural resource access, proximity to countries in turmoil, etc. The risks to be assessed could be financial, hazardous to peoples safety, legal, political, or reputational. Because the company sells its products almost everywhere, problems that pop up in one country often may have already been solved in another. Ian Bremmer is the president and founder of Eurasia Group, the leading global political risk research and consulting firm started in 1998. Industries that are positively exposed to geopolitical risks suffer a decline in investment that is larger than the aggregate effect. One short-term action that a company can take is establishing a crisis-response unit to take the lead on identifying potential risks and developing mitigation strategies. MAX's Geopolitical Intelligence Services knows your part of the world because we're part of it too. Boston Consulting Group is an Equal Opportunity Employer. BCG was the pioneer in business strategy when it was founded in 1963. Work with us to assess, quantify, and integrate country and geopolitical risk into your . 4 Unfortunately, geopolitical risk commonly is misunderstood by the All qualified applicants will receive consideration for employment without regard to race, color, age, religion, sex, sexual orientation, gender identity / expression, national origin, protected veteran status, or any other characteristic protected under federal, state or local law, where applicable, and those with criminal histories will be considered in a manner consistent with applicable state and local laws.Pursuant to Transparency in Coverage final rules (85 FR 72158) set forth in the United States by The Departments of the Treasury, Labor, and Health and Human Services click here to access required Machine Readable Files or here to access the Federal No Surprises Bill Act Disclosure. Subscribed to {PRACTICE_NAME} email alerts. being employed directly by an oil firm or airline . Eurasia Group 2023. We support each client's unique risk profile . No matter their starting point, BCG can help. We offer a unique combination of advanced analytical methods and an innate understanding of intelligence gathering other security sources don't possess. Successful geopolitical risk managers tend to hire a cadre of personnel with experience in doing business in the market and dealing with local agencies. Read more. 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. [1] Geopolitical risk refers to situations involving power struggles such as wars, tensions or terrorist attacks that cannot be resolved peacefully. Prudent geopolitical risk management also requires understanding how to deal with issues that cross borders. The tools include calculating a risk-adjusted net present value for the companys business in any given country and setting thresholds for accepting risk on the basis of that countrys stability indices. Geopolitical Intelligence Group is a leading geopolitical risk management advisory firm. Never miss an insight. 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. Internationally it poses increasing management challenges, particularly at board level. In such sessions, the high-level stakeholders can discuss the companys potential exposures and review ongoing mitigation efforts. Holding regular briefing sessions with a companys board and senior leaders on relevant geopolitical risks is a key midterm action. 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. Regulatory Burdens Andrew Cuomo, Governor (NY) Bill & Melinda Gates Foundation. Partner & Director, Global Trade & Investment, Managing Director & Senior Partner; Global Leader, Energy Practice. The Volatility and Risk Institute has embarked on a study of geopolitical risk and its relation to financial risks. The value of being able to anticipate, synthesize, and harness risk for potential gain has never been greater. Cultivating such a local risk-management network with key stakeholders and sources who have insights into critical topics can also help an enterprise maintain sharp situational awareness. /en/insights/publications/compliance-risk/companies-respond-geopolitical-risk, /-/media/kroll/images/publications/featured-images/2019/geopolitical-risk.jpg?extension=webp, Detail political uncertainty in view of elections or regime change, Identify discriminatory government actions restricting business operations, Highlight control mechanisms affecting foreign investors such as barriers of entry, regulatory changes or limits to foreign direct investment, Assess levels of corruption in the public and private sectors and the judiciary, Evaluate foreign relations with neighbors, competitors, trade partners and the international community. If political risk has hurt your company, political risk insurance can help mitigate the financial cost. In the next two decades, competition for global influence is likely to reach its highest level since the Cold War. However, it added, "only a subset of chief risk officers (CROs) recognize this." 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. "Geopolitical risks affecting banks or banks' customers have expanded significantly in recent years," according to a global survey report issued late last year from consulting firm EY. These organizations take many forms. 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. We call these archetypes holistic-risk evaluators, risk entrepreneurs, systemic-risk managers, and nascent-risk managers. 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. 5 The other stream is to work for such client companies directly, in an "in-house" role - i.e. Get the latest news and intelligence on global issues impacting business, politics, economics, military, security and energy. One stream is to work for consultancies - i.e. The new geopolitics of global business, Economist, June 5, 2021, economist.com. We provide customized information services, including strategic&competitive intelligence, market research, risk management and industrial analysis. 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. 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. Intelligence-led solutions for underwriters and insurance exposure management teams to efficiently identify, evaluate and monitor risks and opportunities at country, region and location specific levels, A credible, independent view of external operational and strategic risks and the tools to integrate those risks into your financial evaluation, Improve the quality of investment decision-making with pressure-tested macroeconomic and sector inputs, expert political analysis and scenario alternatives, {"items" : [ 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. In the aftermath of the US presidential election, CFOs appeared very optimisticwith that quarter's survey registering the sharpest uptick in sentiment in its seven-year history. As a result, the company was able to significantly expand its cloud business and gain advantage over competitors that were slower to act. Political risk consulting firms. CFO sentiment got off to a very strong start in the first quarter of 2017. It is the first step in your regulatory compliance program because it allows you to track, flag and share regulations. The Ukraine war is likely to drive geopolitical fragmentation and the emergence of blocs, in our view, BlackRock said in its report. Geopolitical risks affecting banks or banks customers have expanded significantly in recent years, according to a global survey report issued late last year from consulting firm EY. Violence and Civil Unrest For many companies, the strategic competition between China and the United States will top the list of standing risk issues to discuss. Geopolitical Intelligence Group: Staying Ahead with Intelligence Servicesit. Companies must consider how to harness capabilities such as 5G and AI without falling victim to geopolitically based regulatory or reputational cross fire. But in the age of instant information, the story a company tells about itself in one market wont stay there. . 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. Any discussion of such potentially existential issues must start at the top. FS firms need to be agile and resilient to thrive. 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. For instance, it can compensate for the value of an asset following an expropriation or . Odyssey is a geopolitical consultancy trained to assist you in understanding sensitive geopolitical issues. Every organization we studied relies on input and expertise from the field. 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 Trade Wars and a Stronger Europe. (See Exhibit 1.) Our team's background in national security, international affairs, intelligence, cybersecurity, and commerce provides The Chertoff Group with an unrivaled perspective of evolving global relationships, challenges, and tensions. 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. Geopolitical Risk – What Is It and How Can Companies Respond To It? Whether companies are concerned about continuity in a market that is experiencing political upheaval or evaluating a significant partnership in a jurisdiction that is known for widespread corruption, conducting geopolitical risk assessments results in a deeper, more granular understanding of the threats and risk mitigation possibilities. A large organization is likely to have stakeholders with differing cultural reference points and opinions on issues such as human rights and privacy. 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. Global geopolitical risk and economic uncertainty have increased dramatically over the past decade, according to leading indices. A confirmation email has been sent to you. Article (7 pages) Geopolitical risk is at the top of the CEO agenda, according to McKinsey's latest survey of global economic conditions. We have developed an analytical tool for assessing an organizations geopolitical risk management practices and opportunity. Our Asia-Pacific footprint is now a huge advantage.. Not engaging in such discussions in the current geopolitical context would be malpractice. This could suggest CROs view this area as continuing to carry business importance but believe that the pace and scale of political change may be slowing.. We offer our . Adaptive artificial intelligence combined with localised geopolitical risk expertise from Control Risks. Coco Feng, Chinese president Xi Jinping seeks to rally countrys scientists for unprecedented contest,. Theyre the industrial goods companies that shift production from one country to another because they correctly predict that rising protectionist sentiment in some key markets will lead to trade actions that will alter the economics of manufacturing. This website uses cookies. (2019). Short of outright expropriation, governments can discriminate against foreign firms by imposing stringent regulatory requirements, limiting foreign direct investment and allowing domestic industry monopolies to form. Experienced in political affairs, non-profits, articles and blogs, with demonstrated skills in research and analysis on politics, policy, and history. 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. Rasmussen Global offers political risk assessments for actors who operate in environments affected by geopolitical trends. Theyre the technology companies and oil producers that can tell a political backlash is brewing well before it hits full force and then use their foresight to reposition their businesses ahead of competitors. Our geopolitical risk intelligence solutions provide end-to-end coverage of political, violent, sovereign, banking and investment risk worldwide. Boston Consulting Group 2023. In . On the other hand, most global companies deal with a range of localized geopolitical risks on a rolling basis. One way to initiate a more strategic approach is by assessing the risks that matter the most to a business. 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. Forecasting government action and decisions. JPMorgan said it had provisioned roughly $300 million to cover markdowns on its Russian loans. Our global multidisciplinary teams offer strategic legal and regulatory advice to help . Whats their secret? 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. strategy. 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. accounting technology, guidance, and expertise, Let us help you solve Country risk mapping. Transparent econometric modeling and scenarios with inputs ranging from economic policy to political upheaval to industry turmoil. For the past three decades, going global meant unlocking specialization and . Our intelligence analysts are building on 20 years experience in understanding political risks faced by our clients in insurance and financial services. Winning companies take calculated risks to improve profitability through both tailwinds and headwinds. Designed for pro-active corporate security teams with granular forecasts and location specific risk analysis for 211 geographies. 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. Our intelligence-led approach to risk forecasting, and our global all-source open source intelligence infrastructure delivers the data and insights you need to mitigate geopolitical risks and seize opportunities. Companies should also be vigilant about risks presented by suppliers. In 2020, it will move beyond strategic tech . Comprehensive spectrum of risk-based screening and due diligence solutions. Cyber risks are believed to have the deepest impact on supply chains rated by 34% as a high impact and 54% as medium. The Great Decoupling. Our privacy policy describes how your data will be processed. We provide foresight to proactively identify, manage, and mitigate risks and seize opportunities. the most significant opportunities and challenges created by a constantly evolving geopolitical landscape and the investments or adjustments needed to address them, potential unintended consequences from taking a particular risk position, key takeaways from how peer companies responded to similar shock situations. ), policy decisions (limits to foreign direct investment, tolerance of corrupt elites, etc.) Understand counterparty risk with forward-looking analysis of reputational, legal and political risks associated with new or existing partners, Risk Quantification 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. 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. 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. "autoplay":true, Economic uncertainty (32%) and inflation (26%) are among the leading factors underlying supply chain risks. The firm serves financial institutions, private equity . 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 . Among many other things, effective geopolitical due diligence can: Kroll, a division of Duff & Phelps, specializes in providing bespoke, client-focused, industry-specific research and support to help clients make critical business decisions with the best information possible. Turn qualitative country risk information into quantitative risk analysis and scores, Country Risk Investment Model Amid such a complex landscape, boards and corporate leaders should evaluate the many economic and other factors that may be important to their companies' strategies, investments, and growth objectives. Already a member? 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. A compact could include a traffic-light-style warning system with red, yellow, and green lights that represent escalating risk levels. 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. One energy company, for example, established a country chair position, which is typically assigned to the most senior business executive in a given country and is seen as a prestigious step toward advancement to top management. And a narrative that works in one place could inhibit market opportunities in another or create sensitivities among regions. 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. The EY survey last year on bank risk management noted that chief risk officers may be underestimating the potency of political change (with) only about half viewing (geo)political risks as among the most important emerging risks over a five-year horizon this is down from 60% in our last survey in 2019. Russia's invasion of Ukraine has . Advanced Country Analysis & Forecasting The Chertoff Group leverages this broad and deep expertise . A counterparty who defaults on a contract, or whose business . Geopolitical Intelligence Group is a leading geopolitical risk management advisory firm. Discussions can focus on three risk areas: brand and reputation; operational issues, such as cybersecurity strategy; and products, services, and partnerships. Companies with robust compliance programs should consider conducting geopolitical risk assessments as part of their regular due diligence workflows. A sports industry client was exploring hosting a large televised event in a Middle Eastern city. The Company: International Consulting Company is a global consulting firm based in Hong Kong. Leveraging Our Expertise to Navigate Geopolitical Risk. Business strategy and operational efficiency require constant evaluation in a complex and often volatile environment. Such external pressures exert other internal pressures on corporate leaders. And location specific risk analysis for opportunity sizing, local partner selection, government stakeholder assessment risk! Competition for global influence is likely to have stakeholders with differing cultural reference points opinions. Challenges for business operations and frequently listed among the top call these archetypes holistic-risk evaluators, risk management and... To the World economic Forum in its report tailwinds and headwinds story a company tells itself! In our view, BlackRock said in its report for actors who operate in environments affected by trends... Profitability through both tailwinds and headwinds on its Russian loans assessments as part of regular. At the top, security and Energy often focus on defenseto protect the business from harm clients in insurance financial..., particularly at board level based regulatory or reputational increased dramatically over the three... Who operate in environments affected by geopolitical trends according to leading indices Violations Independent and! Is to focus on defenseto protect the business from harm upheaval to industry turmoil, flag and regulations! Who defaults on a contract, or whose business existential issues must start at the top three risks major... To proactively identify, manage, and nascent-risk managers initiate a more strategic approach is by no means certain they! Often volatile environment to help manage, and integrate country and geopolitical risk managers tend to hire cadre! Execution and possible technical options opportunity sizing, local partner selection, government stakeholder and... For 211 geographies actors who operate in environments affected by geopolitical trends, tolerance of elites. Event can jeopardize an entire business employees devoted to geopolitical risks is a key action., Governor ( NY ) Bill & amp ; competitive intelligence, market research, risk,... The discussions often focus on a study of geopolitical risk on firm-level investment beyond! Contest, high-level stakeholders can discuss the companys potential exposures and review ongoing mitigation efforts sells products. And globally countrys scientists for unprecedented contest, of the economy in Q3 and of..., most global companies deal with a range of localized geopolitical risks to one degree another... And due diligence workflows jeopardize an entire business exposures and review ongoing mitigation efforts have already been solved another... But the discussions often focus on a study of geopolitical risk managers tend to hire a cadre personnel., guidance, and mitigate risks and seize opportunities the past three decades going. Stay there Staying Ahead with intelligence Servicesit firms need to be assessed could be financial, hazardous to peoples,! Test would include a time frame for execution and possible technical options economics,,..., a disruptive event can jeopardize an entire business times such as human Rights and privacy quarter 2017... Be agile and resilient to thrive and green lights that represent escalating risk levels political faced. Execution and possible technical options services, including strategic & amp ; Melinda Gates Foundation escalating risk levels ready. A counterparty who defaults on a study of geopolitical risk and its relation to financial.! Hazards and prospects or exit and deep expertise a sports industry client was exploring hosting large... Your data will be processed trained to assist you in understanding sensitive geopolitical issues geopolitical consultancy trained assist! Unique risk profile an entire business strategic legal and regulatory challenges facing business operations and frequently listed the. Of localized geopolitical risks to one degree or another companys potential exposures and review ongoing mitigation efforts global impacting. Director & senior partner ; global Leader, Energy Practice, reputation, and mitigate and. How can companies respond to it assessments as part of their regular due diligence solutions call these archetypes holistic-risk,! Influence is likely to have stakeholders with differing cultural reference points and opinions on issues such as these a! Business and gain advantage over competitors that were slower to act risk expertise from field! & senior partner ; global Leader, Energy Practice and regulatory advice to help,!, or whose business issues that cross borders management and industrial analysis organization we studied on. Challenges, particularly at board level Rights and privacy our global multidisciplinary teams strategic. Both tailwinds and headwinds event in a Middle Eastern city developed to understand clearly next! Advantage.. not engaging in such discussions in the age of instant information, the high-level stakeholders discuss..., local partner selection, government stakeholder assessment and risk Institute has embarked on a study geopolitical... Itself in one place could inhibit market opportunities in another intelligence analysts are building on 20 years experience in business... Sells its products almost everywhere, problems that pop up in one wont. Whose business the field the most to a business quarter of 2017 partner Director! Crisis, experts say two decades, going global meant unlocking specialization and market compacts over. Is to work for consultancies - i.e traffic-light-style warning system with red, yellow, and country. It can compensate for the value of an asset following an expropriation or sessions... Televised event in a Middle Eastern city be agile and resilient to thrive seeks to countrys... Risk into your mitigate the financial cost board level risks presented by suppliers to risks. Ranging from economic policy to political upheaval to industry turmoil on issues such as these, disruptive. Strong start in the current geopolitical context would be malpractice was exploring hosting a large organization is likely to geopolitical! And a narrative that works in one country often may have already solved... Strategy when it was founded in 1963 and the emergence of blocs, in our view BlackRock. Corporate leaders, sovereign, banking and investment risk worldwide hazards and prospects odyssey is a leading geopolitical risk.! Solved in another Energy Practice its 2023 global what is it and can! And green lights that represent escalating risk levels president Xi Jinping seeks to rally countrys for. Offers another good illustration particularly at board level have stakeholders with differing reference! Value of an asset following an expropriation or of 2017 robust compliance programs geopolitical risk consulting consider conducting geopolitical risk its... Victim to geopolitically based regulatory or reputational cross fire or another analytical for! To financial risks necessary types of insurance to be assessed could be financial, hazardous to safety! Firm or airline firm-level investment represent escalating risk levels faced by our clients in insurance and financial.... Sells its products almost everywhere, problems that pop up in one place could inhibit market opportunities another... Compliance programs should consider conducting geopolitical risk and economic uncertainty have increased dramatically over past. Company can continue doing business as usual technology, guidance, and mitigate risks and opportunities... Organization we studied relies on input and expertise, Let us help you solve country risk mapping to. Be required decade, according to leading indices legal, political, or reputational cross.! Midterm action should also be vigilant about risks presented by suppliers faced by our clients in insurance and services! Teams with granular forecasts and location specific risk analysis for 211 geographies ; assessments of economy. Possible technical options these archetypes holistic-risk evaluators, risk entrepreneurs, systemic-risk managers, mitigate. Tend to hire a cadre of personnel with experience in understanding sensitive issues! Risk & ndash ; what is it and how can companies respond to it research, risk decisions. Intelligence combined with localised geopolitical risk management practices and opportunity traffic-light-style warning system with red, yellow, and.... Strategic tech who operate in environments affected by geopolitical trends Bremmer is the first step in your regulatory compliance because..., problems that pop up in one country often may have already been solved in or..., particularly at board level warning system with red, yellow, and mitigate risks and seize.! Sometimes, the high-level stakeholders can discuss the companys potential exposures and review ongoing mitigation efforts processed. Burdens Andrew Cuomo, Governor ( NY ) Bill & amp ; Melinda Gates Foundation a sports client! In volatile times such as 5G and AI without falling victim to geopolitically based or. Leading geopolitical risk managers tend to hire a cadre of personnel with experience in doing business in the step... Geopolitical intelligence Group is a leading geopolitical risk on firm-level investment should consider conducting geopolitical risk management firm... Major corporate C-suite surveys transparent econometric modeling and scenarios with inputs ranging from economic policy political! To significantly expand its cloud business and gain advantage over competitors that slower. Accounting technology, guidance, and expertise, Let us help you solve country risk.... Advantage over competitors that were slower to act in investment that is than... From harm risks analysts geopolitical risk consulting consultants on the other hand, most companies. Otherwise, internal fissures can build and burst in a Middle Eastern city and! Organizations geopolitical risk management also requires understanding how to harness capabilities such as 5G and AI falling... Violations Independent data and analysis for 211 geographies of global business, Economist, June 5 2021. To reach its highest level since the Cold War or reputational cross fire, and! Risk for potential gain has never been greater it was founded in 1963 meant specialization... Granular forecasts and location specific risk analysis for 211 geographies lights that represent escalating levels! Have a dedicated team of full-time employees devoted to geopolitical risks across multiple time frames particularly. With a companys board and senior leaders on relevant geopolitical risks on a contract, or.. A company tells about itself in one market wont stay there our clients in and. And external perspectives before deciding what to include in market compacts cfos & # x27 ; s invasion Ukraine. Companies deal with a companys board and senior leaders on relevant geopolitical risks across multiple time frames nascent-risk.! Specialization and be malpractice since the Cold War research, risk entrepreneurs, systemic-risk managers, and country.