for political and security risk firms that sell their services or analysis to client companies (e.g. 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 Not many bankers want to grapple with that shift because it is inconvenient and depressing.. American Express. Holistic-risk evaluators have the most highly developed geopolitical risk management operations. Business strategy and operational efficiency require constant evaluation in a complex and often volatile environment. 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. But so do some pharmaceutical, technology, and packaged goods companies. We provide customized information services, including strategic&competitive intelligence, market research, risk management and industrial analysis. Sign in with your username. Key features of our political risk service include: Political risk analysis and assessments. Political Risk Consultancy We are specialists in providing economic and political risk consultancy. The ability to proactively navigate turbulence can mean the difference between prospering through a crisis or falling victim. If there is unrest onshore it could spill out into territorial waters, as was seen with Somalian . In such sessions, the high-level stakeholders can discuss the companys potential exposures and review ongoing mitigation efforts. While no one can predict the future . As the former Intel CEO Andy Grove famously put it, Only the paranoid survive. Nowhere is the fallout from current geopolitical tensions more apparent than the unfolding competition between China and the United States. "autoplay":true, Learn More link icon. 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. Ian Bremmer is the president and founder of Eurasia Group, the leading global political risk research and consulting firm started in 1998. 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. 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. 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. 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. Any investment in taxable fixed-income securities is subject to certain risks, including credit risk, interest-rate risk, foreign risk, and currency risk. International Business, March 30, 2021 Expropriation 1. With over 40 years of experience in business intelligence and investigations, a global team of regional experts and an unmatched network of in-country sources, Kroll is uniquely qualified to support geopolitical risk assessments in any number of business scenarios. Part of managing geopolitical risk is considering the ramifications of a companys core narrative. Violence and Civil Unrest Considered among the world's foremost experts in their respective subject areas, our analysts provide tailored support to the world's top investors, executives . A lot of American banks have operated under the assumption that more or less everything in the world is stable, said Heather Heldman, managing partner and principal at Luminae Group, a Washington, D.C.-based geopolitical risk consulting firm. Nonetheless, the results highlighted the need for banks to embed political analysis into risk-based decision-making. @ Thomson Reuters, Sales 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. In extreme cases, a disruptive event can jeopardize an entire business. 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. As a result, they fail to examine the broader strategic landscape, full range of risk scenarios and consequences, or key decision points. Geopolitics is "the study of the effects of Earth's geography (human and physical) on politics and international relations.". 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.. 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 11 Jan 2023 CEO agenda Six ways asset managers can prepare for an uncertain future 2 Feb 2023 Wealth and asset management We offer a unique combination of advanced analytical methods and an innate understanding of intelligence gathering other security sources don't possess. Others may opt to identify as global entities because of the access it accords them to pursue business opportunities in emerging markets. You may share a link to this page on any of the sites listed below. Sydney Olympic Park NSW 2127 Creating risk management strategies through deep industry expertise, advanced analytics, and specialist global knowledge to help you optimize your business. With Thomson Reuters Regulatory Intelligence, you can find and get clarity on regulatory developments. 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. "Heightened political risk globally raises the threshold for unrest, with implications for shipping, such as the ability to secure crews and access ports safely. 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. Financial risks have probably never been more acute. 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. In a global business environment characterized both by hypercompetition and intensifying geopolitical headwinds, it is no longer enough for companies with global footprints to only react defensively. It is the first step in your regulatory compliance program because it allows you to track, flag and share regulations. Geopolitics, corporate governance and ESG. Krolls assessment analyzed the safety of the clients employees, evaluated local infrastructure and provided regional political and economic outlooks. Citigroup, which had been trying to sell its Russian retail operations when the war started, said its potential losses could come to as much as $3 billion, and put aside $1 billion in loan-loss reserves. We evaluated their organizations approaches along three dimensions: the strategic role of geopolitical risk management within the company, the ways in which different parts of the organization are leveraged, and the use of risk management processes and tools. Such a compact should make crystal clear what an organizations priorities are in the high-risk market, the criteria to be used to assess and manage risks, and how to deploy the criteria in a way that lines up with goals for operations and performance. legal content, expertise, and technology, Find essential resources 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. 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. A sports industry client was exploring hosting a large televised event in a Middle Eastern city. 4. "autoplaySpeed":8000 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. 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. Experienced in political affairs, non-profits, articles and blogs, with demonstrated skills in research and analysis on politics, policy, and history. The Position . Eurasia Group analysts leverage deep country and thematic expertise with quantitative methodologies to forecast fast-moving risks and opportunities. Designed for pro-active corporate security teams with granular forecasts and location specific risk analysis for 211 geographies. Instead, it alleviated the concerns by moving aggressively to open more data centers in customers home countrieswith no negative effect. Our . 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. With tectonic shifts in geopolitics rumbling from Chinas reemergence on the global stage, a climate crisis, and the Fourth Industrial Revolution, companies must be on guard. 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. SVA ( www.stevevickersassociates.com) is a specialist international risk mitigation, corporate intelligence and risk consulting company. Companies are walking a geopolitical tightrope. 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. Atlas Risk Group is a geopolitical risk analysis, consulting, and advisory services firm founded by Omer Aziz and Shane Sencal-Tremblay. 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. Managing geopolitical risk. Theyre the equity investors that reap rich returns by snapping up stakes in undervaluedbut soundassets in the challenging emerging markets that others shun. Our privacy policy describes how your data will be processed. 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. 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. Political risk advisory Our ability to combine leading political expertise with timely and actionable insight for clients is at the core of our value. Systemic-risk managers adopt a primarily defensive position, focusing on protecting their businesses from the downsides of change. Andrew S. Grove, Only the Paranoid Survive: How to Exploit the Crisis Points That Challenge Every Company, New York, NY: Currency, 1996. Geopolitical events, generally speaking, occur at the intersection of geographical factors (natural resource access, proximity to countries in turmoil, etc. 5. The company could have focused mainly on trying to prove that there was no reason for concern. Such a test would include a time frame for execution and possible technical options. FS firms face a "trilemma" of rising inflation, energy insecurity and disrupted supply chains, as well as longer-term geopolitical change and megatrends. Our intelligence analysts are building on 20 years experience in understanding political risks faced by our clients in insurance and financial services. 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.. Geopolitical Brunswick Geopolitical brings together individuals with enormous experience and insight, and offers business leaders strategic advice at the highest level on a wide range of global issues and challenges. According to the World Economic Forum in its 2023 Global . 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. World Path Consulting San Francisco, CA Quick Apply Remote. 4 Integrated solutions - consulting, risk management and broking - to help organizations prevent and protect against interlinked geopolitical risks. Managing volatility requires an understanding of the impact on business, customers and environment. 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. The decoupling of the US-Chinese tech sector is already disrupting bilateral flows of technology, talent, and investment. Marcin Grajewski, The EU strategic autonomy debate: What think tanks are thinking, European Parliament Think Tank, March 30, 2021, europarl.europa.eu. New market entry 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. Cyber risks are believed to have the deepest impact on supply chains rated by 34% as a high impact and 54% as medium. 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. oil companies, airlines, tech firms ,etc.). Some may, for commercial and strategic reasons, choose to strengthen ties to the countries where the companies are based. The role is responsible for ensuring that the People Safety & Security (PS&S) team are supported by leading Nokia's Crisis Management system in response to physical risks that impact Nokia operations. Our geopolitical risk intelligence solutions provide end-to-end coverage of political, violent, sovereign, banking and investment risk worldwide. Successful geopolitical risk managers tend to hire a cadre of personnel with experience in doing business in the market and dealing with local agencies. While there is no universal formula for success, building robust geopolitical risk management organizations and processes is key to begin navigating an uncertain world. Most of the companies we assessed do not use rigorous quantitative methods to analyze geopolitical risks. 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. The Volatility and Risk Institute has embarked on a study of geopolitical risk and its relation to financial risks. All rights reserved. Citi. 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. Our policy and political risk consulting team helps business leaders to anticipate, analyze and navigate the challenges arising from political developments. The two countries account for 76 of the worlds 100 most valuable companies. Read all our latest insights from Control Risks analysts and consultants on the challenges our clients are facing. 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. Any discussion of such potentially existential issues must start at the top. Political risk monitoring. They then proactively address the emerging threat to gain competitive advantage. 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. A large organization is likely to have stakeholders with differing cultural reference points and opinions on issues such as human rights and privacy. The organization saw a troubling trend in a number of key markets that could potentially threaten its growing cloud-storage business: mounting anxiety on the part of policymakers and customers, who were worried that local governments could access confidential data kept on servers in certain countries. No matter their starting point, BCG can help. Global geopolitical risk and economic uncertainty have increased dramatically over the past decade, according to leading indices. 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. 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. Please feel free contact with us if you have any further questions or concerns, Level 1, 102 Bennelong Parkway, 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. Understand counterparty risk with forward-looking analysis of reputational, legal and political risks associated with new or existing partners, Risk Quantification Partner & Director, Global Trade & Investment, Managing Director & Senior Partner; Global Leader, Energy Practice. Years experience in understanding political risks faced by our clients in insurance and financial services into risk-based.! As was seen with Somalian technical options ; competitive intelligence, market research, management... Already disrupting bilateral flows of technology, talent, and packaged goods companies building on 20 experience! 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