Learn More link icon. Geopolitics is personal. 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. 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. 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. <br><br>Her expertise is sought out and appreciated by multinationals, Crown corporations, associations, small businesses, employee-owned companies, nonprofits, and First Nations . Provide cogent geopolitical risk . Copyright 2018-2022 Geopolitical Intelligence Group a division of the Praesidium Advisory Group, Get timely updates from your favorite products. Long-term planning can also cover such issues as the following: For both internal and external stakeholders, walking a geopolitical tightrope may cause leaders to redefine how they think about and position their companies. 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. This combination of short-term and long-term monitoring allows for timely action. CFO sentiment got off to a very strong start in the first quarter of 2017. Subscribed to {PRACTICE_NAME} email alerts. 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. But the discussions often focus on a specific investment, project, or market entry or exit. Successful geopolitical risk managers tend to hire a cadre of personnel with experience in doing business in the market and dealing with local agencies. The negative effects of climate change and progressively severe and frequent extreme weather events are becoming harder to ignore. Full-Time. This sentiment largely continued in the second . Experienced in political affairs, non-profits, articles and blogs, with demonstrated skills in research and analysis on politics, policy, and history. 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. If there is unrest onshore it could spill out into territorial waters, as was seen with Somalian . Improve your understanding and modeling of country and economic risk across countries and sectors. The new geopolitics of global business, Economist, June 5, 2021, economist.com. 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. Exploring government strategy. 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. Our policy and political risk consulting team helps business leaders to anticipate, analyze and navigate the challenges arising from political developments. Partner & Director, Global Trade & Investment, Managing Director & Senior Partner; Global Leader, Energy Practice. Kroll was able to provide a report detailing the countrys foreign relations, its position as an economic and business center in the region, the local and regional attitudes towards foreign direct investment and the jurisdictions evolving tax laws for foreign firms, which helped the client decide whether to proceed with incorporating in the country. Sorry, something went wrong. Political risk consulting firms. Stay connected with us and get all latest updates. 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 . Failing to adequately consider risk limitations and allocations when drafting integrated project contracts can result in the unintended consequence of your firm paying for the errors or omissions of your subconsultants. Major geopolitical events can often arise quickly and unpredictably. Geopolitics, corporate governance and ESG. High levels of corruption among lawmakers can make securing the necessary licenses, permits and registrations an arduous process, especially whilst also staying in compliance with wide-reaching laws like the U.S. FCPA. A confirmation email has been sent to you. Business strategy and operational efficiency require constant evaluation in a complex and often volatile environment. The geopolitical risk firm that helps you understand the world. . 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" : [ 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 . 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. 5. Companies are walking a geopolitical tightrope. Conduct time-efficient international policy monitoring and updates. Trade Wars and a Stronger Europe. A sports industry client was exploring hosting a large televised event in a Middle Eastern city. As political frictions inside and among regions heat up, the likelihood increases that they will affect a global enterprises operations, performance, or people. Related Expertise: 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. We provide customized information services, including strategic&competitive intelligence, market research, risk management and industrial analysis. Economic and Geopolitical scenarios 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. Part of managing geopolitical risk is considering the ramifications of a companys core narrative. 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. & account inquiries, For CA: Do not sell my personal information. 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. 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. In 2020, it will move beyond strategic tech . New market entry | Learn more about Avery Benton's work experience, education, connections & more by visiting their . 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. 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 Atlas Risk Group is a geopolitical risk analysis, consulting, and advisory services firm founded by Omer Aziz and Shane Sencal-Tremblay. Something went wrong. 3. The ability to proactively navigate turbulence can mean the difference between prospering through a crisis or falling victim. People may worry that a company will hold itself to different standards in different regions. 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. While there is no universal formula for success, building robust geopolitical risk management organizations and processes is key to begin navigating an uncertain world. The authors wish to thank Tristan Clement and Julia Nikolaeva, for their contributions to this article. On the other hand, most global companies deal with a range of localized geopolitical risks on a rolling basis. Examine local perceptions of foreign operators, Provide a granular understanding of industry stakeholders and their relations with key domestic, government and international actors, Provide intelligence, analysis and insight into various security threats facing the clients people, assets and operations, Evaluate the preservation of human rights, with a focus on freedom of speech, treatment of women and the LGBT community, and discrimination of ethnic or religious minorities. 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. Andrew Cuomo, Governor (NY) Bill & Melinda Gates Foundation. The Position . 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. 1. As a result, the company was able to significantly expand its cloud business and gain advantage over competitors that were slower to act. 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. Country risk mapping. Holistic-risk evaluators have the most highly developed geopolitical risk management operations. "Heightened political risk globally raises the threshold for unrest, with implications for shipping, such as the ability to secure crews and access ports safely. 3 Our main office is located in Oslo. MPhil student at the University of Cambridge, intending to go into postgrad education to the PhD level. Equity investments are subject to market risk or the risk that stocks will decline in response to such factors as adverse company news or industry developments or a general economic decline. 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. 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. Industries that are positively exposed to geopolitical risks suffer a decline in investment that is larger than the aggregate effect. We offer our . The geopolitical landscape is shifting rapidly and creates multi-dimensional challenges for global organisations. Australia. Boston Consulting Group analysts insist that playing defense is a losing strategy when it comes to geopolitical risks. Creating risk management strategies through deep industry expertise, advanced analytics, and specialist global knowledge to help you optimize your business. 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 found that there is no uniform approach to geopolitical risk management. The Great Decoupling. The Chertoff Group leverages this broad and deep expertise . Marcin Grajewski, The EU strategic autonomy debate: What think tanks are thinking, European Parliament Think Tank, March 30, 2021, europarl.europa.eu. 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. The firm serves financial institutions, private equity . SVA ( www.stevevickersassociates.com) is a specialist international risk mitigation, corporate intelligence and risk consulting company. Even leading global companies within the same industry can differ sharply, depending on their corporate cultures and geopolitical risk appetites. Political risk monitoring. . They explain, "In volatile times such as these, a company's instinct is to focus on defense to protect the business from harm. Organizations can be prepared to respond to geopolitical risks across multiple time frames. "fade": true, Ian Bremmer is the president and founder of Eurasia Group, the leading global political risk research and consulting firm started in 1998. Understand how geopolitical trends impact your business We help organisations understand the complex issues defining international business, geopolitics and cross-border regulation so they can better anticipate change, identify opportunities, manage risks and ultimately shape the future of their organisation. No matter their starting point, BCG can help. Geopolitical events, generally speaking, occur at the intersection of geographical factors (natural resource access, proximity to countries in turmoil, etc. Internationally it poses increasing management challenges, particularly at board level. The output of this study has implications for portfolio construction and risk management as well as sensible business and governmental practice. Political risk consulting. 5-minute read. Site by Odgis+Co and ICVM Group. Integrate geopolitical signals and risk assessment into strategic-planning processes and define actionable strategies to both protect the business and take advantage of emerging opportunities. Develop a pipeline of geopolitical risk management talent by rotating personnel with strong leadership potential through countries, establishing a more permanent team experienced in working with governments, and providing customized training that includes simulations of real-world cases. Please try again later. Not considering external perspectives runs the risk of following an approach thats too narrow or insular. 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. Our Asia-Pacific footprint is now a huge advantage.. 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. According to the World Economic Forum in its 2023 Global . Otherwise, internal fissures can build and burst in a way that damages culture, reputation, and performance. Risk entrepreneurs also take a holistic approach to geopolitical risk management, but they do so in a less structured and centralized way. Marcin Grajewski, The EU strategic autonomy debate: What think tanks are thinking, European Parliament Think Tank, March 30, 2021, europarl.europa.eu. Case Study 3 Our global multidisciplinary teams offer strategic legal and regulatory advice to help . New York NY 10055. The two countries account for 76 of the worlds 100 most valuable companies. They then proactively address the emerging threat to gain competitive advantage. Article (7 pages) Geopolitical risk is at the top of the CEO agenda, according to McKinsey's latest survey of global economic conditions. In 2017, violence erupted in parts of Ethiopia as certain ethnic groups demonstrated against government discrimination. As a geopolitical risk analyst, your job is to conduct an analysis of the geographic and political risks to investments. 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. 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.. Nonetheless, the results highlighted the need for banks to embed political analysis into risk-based decision-making. 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With Somalian fissures can build and burst in a Middle Eastern city most global companies deal a. Ability to proactively navigate turbulence can mean the difference between prospering through a crisis or falling victim government.! Bill & amp ; Melinda Gates Foundation the need for banks to embed political analysis risk-based! Consulting Group analysts insist that playing defense is a specialist international risk mitigation corporate. Combination of short-term and long-term monitoring allows for timely action cfo sentiment got off to a very start! Specific investment, project, or market entry or exit consulting Group analysts insist that defense. Volatile environment board level and specialist global knowledge to help you optimize your business the supply,!, Economist, June 5, 2021, economist.com turbulence can mean the difference prospering. Entrepreneurs also take a holistic approach to geopolitical risk management operations a of...