In the next two decades, competition for global influence is likely to reach its highest level since the Cold War. But if those talks dont directly affect a companys operations, its board may not need to dedicate time to them. Our operational and strategic advisory services inform our clients with valuable . Sign up to receive periodic news, reports, and invitations from Kroll. A confirmation email has been sent to you. International Business, March 30, 2021 }, 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. A counterparty who defaults on a contract, or whose business . Start with the board Many company boards already deliberate geopolitical risks to one degree or another. No matter their starting point, BCG can help. Identifying and implementing responses to legislation and government action. It is the first step in your regulatory compliance program because it allows you to track, flag and share regulations. Nowhere is the fallout from current geopolitical tensions more apparent than the unfolding competition between China and the United States.
for political and security risk firms that sell their services or analysis to client companies (e.g. Capital reserves, credit portfolios, investment policies and capital and debt profiles all demand constant scrutiny to adequately manage and mitigate risk. The Geopolitical Analyst (remote) will work closely with our teams to support research and analytical duty upon clients' needs. Every organization we studied relies on input and expertise from the field. 3 Commodity prices rose sharply 4 after Russia . Technology, especially, has become what Chinese president Xi Jinping has called the main battleground of global power rivalry.
New York NY 10055. American Express. As the former Intel CEO Andy Grove famously put it, Only the paranoid survive.
being employed directly by an oil firm or airline . Comprehensive spectrum of risk-based screening and due diligence solutions. Designed for pro-active corporate security teams with granular forecasts and location specific risk analysis for 211 geographies. 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. JPMorgan said it had provisioned roughly $300 million to cover markdowns on its Russian loans. 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. The firm serves financial institutions, private equity . Leaders can cultivate cohesiveness by bringing key stakeholders to the table to share views on a given engagement or project. Governments can confiscate assets, nationalize property, breach contracts, impose embargos or prohibit trade with specific countries. We provide foresight to proactively identify, manage, and mitigate risks and seize opportunities. "fade": true,
Sorry, something went wrong. Advanced Country Analysis & Forecasting {"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. 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. A large organization is likely to have stakeholders with differing cultural reference points and opinions on issues such as human rights and privacy. 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.
The challenges that geopolitical risks create will get worse. 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.
A compact could include a traffic-light-style warning system with red, yellow, and green lights that represent escalating risk levels. We have developed an analytical tool for assessing an organizations geopolitical risk management practices and opportunity. 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. Political risk advisory Our ability to combine leading political expertise with timely and actionable insight for clients is at the core of our value. When companies consider opportunities in emerging or volatile markets whether through acquisition, merger or growth it is essential for them to understand the potential impact that geopolitical events can have on their business activities. These organizations take many forms. Prudent geopolitical risk management also requires understanding how to deal with issues that cross borders. Thank you! Creating risk management strategies through deep industry expertise, advanced analytics, and specialist global knowledge to help you optimize your business. Case Study 2
According to the World Economic Forum in its 2023 Global . Key features of our political risk service include: Political risk analysis and assessments. ByClint Follette,Marc Gilbert,Ilshat Haris,Michael McAdoo, andPattabi Seshadri. Because the company sells its products almost everywhere, problems that pop up in one country often may have already been solved in another. Global Trends 2040: A more contested world, US National Intelligence Council, March 2021, dni.gov. I really hope that we dont end up with a bipolar system, and I think we need to work very hard and to work with China to try to avert such an outcome, Yellen said, adding that China has greatly benefited in economic terms from being part of a global system, with the dollar as the dominant reserve currency and a rules-based multilateral system. Responsibilities: Provide cogent geopolitical risk analysis to a diverse array of clients and various internal teams in written or recorded deliverables. 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. 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. 11 Jan 2023 CEO agenda Six ways asset managers can prepare for an uncertain future 2 Feb 2023 Wealth and asset management 5-minute read. As a result, they fail to examine the broader strategic landscape, full range of risk scenarios and consequences, or key decision points. Such external pressures exert other internal pressures on corporate leaders. 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. The Regional Intelligence Analyst will work in the Global Security department of a major international pharmaceutical company. Something went wrong. 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. CFO sentiment got off to a very strong start in the first quarter of 2017. Our privacy policy describes how your data will be processed. Any copying or distribution of Eurasia Group materials is prohibited. 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. 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 To sharpen their view of the shifting global landscape, a growing number of major multinational corporations have been investing in their abilities to identify trends early and to influence the decisions of host governments ahead of major transitions, such as sudden changes in trade agreements or national governments. Discussions can focus on three risk areas: brand and reputation; operational issues, such as cybersecurity strategy; and products, services, and partnerships. Industries that are positively exposed to geopolitical risks suffer a decline in investment that is larger than the aggregate effect. Internationally it poses increasing management challenges, particularly at board level. Full-Time. 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. Holding regular briefing sessions with a companys board and senior leaders on relevant geopolitical risks is a key midterm action. Obtain the data you need to make the most informed decisions by accessing our extensive portfolio of information, analytics, and expertise. Boston Consulting Group 2023. As a management consultant, Dr. Smith has worked for PA Consulting Group . Russia's invasion of Ukraine has . In . In-depth analysis, they recognize, does not come solely from algorithms. 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. Convert risk into opportunity with bespoke solutions. Improve your understanding and modeling of country and economic risk across countries and sectors. "speed": 600,
A quick message or email to the global functional marketing, finance, or risk community, the company told us, allows for rapid troubleshooting, the cross-pollination of insights, and the sharing of best practices. Channeling the policy debates under way in the European Union,
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