Please try again later! 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. 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. 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. . Stratfor Worldview is the world's leading geopolitical intelligence platform. Creating short-term, midterm, and long-term response strategies ensures that a company can not only handle a fast-changing situation or emergency but also make the investments needed to seize opportunities and become more resilient. 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. 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. Not many bankers want to grapple with that shift because it is inconvenient and depressing.. Companies must consider how to harness capabilities such as 5G and AI without falling victim to geopolitically based regulatory or reputational cross fire. Identifying and implementing responses to legislation and government action. Integrated solutions - consulting, risk management and broking - to help organizations prevent and protect against interlinked geopolitical risks. 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. Violence and Civil Unrest 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. It could also apply the system to the entities with which it does business, separating those with which a local office can work without needing additional approval from those that need risk approval and those with which an office should never work with. 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. In-depth analysis, they recognize, does not come solely from algorithms. These organizations take many forms. Sign in to the product or service center of your choice. Reporting focuses on both incident analysis and trend monitoring, providing forward looking assessments to facilitate proactive risk management decision making and asset . After consulting with top business leaders and legal, public-policy, and risk professionals at Fortune 500 companies in multiple industries, we suggest that company leaders can use a five-pronged approach to managing geopolitical risk. 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. The most successful opportunists carefully monitor any situation that may, at first glance, appear to be a threat. 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 . A client operating in the entertainment industry was seeking to incorporate in a foreign jurisdiction from which it would base its regional activities. Cyber risks are believed to have the deepest impact on supply chains rated by 34% as a high impact and 54% as medium. Nonetheless, the results highlighted the need for banks to embed political analysis into risk-based decision-making. 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. Governments can confiscate assets, nationalize property, breach contracts, impose embargos or prohibit trade with specific countries. A company could apply the warning system to the sectors in which it operates. Part of managing geopolitical risk is considering the ramifications of a companys core narrative. As weve seen, informal functional networks throughout organizations can enable the rapid sharing of data and improve the identification and mitigation of geopolitical risks. being employed directly by an oil firm or airline . Geostrategic Business Group | EY - Global Close search Trending Why Chief Marketing Officers should be central to every transformation 31 Jan 2023 Consulting The CEO Imperative: How will CEOs respond to a new recession reality? . and risk management resources for todays professional services 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. 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. Get the latest news and intelligence on global issues impacting business, politics, economics, military, security and energy. Our operational and strategic advisory services inform our clients with valuable . Utilize our expert insight and data to get risk scores tailored to your specific metrics, Benchmarking, Pricing and Aggregation, and Scenario Analysis 1 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. Otherwise, internal fissures can build and burst in a way that damages culture, reputation, and performance. 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. Sometimes, the payoff is simply that the company can continue doing business as usual. Today, the company has offices in New York, Washington, and London, as well as a network of experts and resources around the world. Our geopolitical risk intelligence solutions provide end-to-end coverage of political, violent, sovereign, banking and investment risk worldwide. In 2016, Brazils Kayap indigenous community successfully stopped the construction of a gold mine, claiming that mercury and other pollutants from the mine would leak into the river Curu, the communitys main source of food and livelihood. Shipping will increasingly be drawn into geopolitical disputes," says Kinsey. Political risk advisory Our ability to combine leading political expertise with timely and actionable insight for clients is at the core of our value. 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. 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. Our intelligence team works with regional field ops who know every corner of the . 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.. Yet, companies find Geopolitical Risk difficult to fully understand and even more challenging to manage. Our geopolitical risk intelligence solutions provide end-to-end coverage of political, violent, sovereign, banking and investment risk worldwide. Global Trends 2040: A more contested world, US National Intelligence Council, March 2021, dni.gov. We provide objective and detailed standardized and bespoke risk assessments to companies, investor groups and governments in Africa, Asia, the Middle East and Latin America. Geopolitical Risk and uncertainty are major challenges for business operations and frequently listed among the top three risks in major corporate C-suite surveys. Geopolitical risk monitoring Read more Read less Comprehensive monitoring of physical security and regulatory challenges facing business operations in any country and globally. Related Expertise: We provide foresight to proactively identify, manage, and mitigate risks and seize opportunities. Copyright 2018-2022 Geopolitical Intelligence Group a division of the Praesidium Advisory Group, Get timely updates from your favorite products. One stream is to work for consultancies - i.e. 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. 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. CFOs' assessments of the economy in Q3. Holistic-risk evaluators have the most highly developed geopolitical risk management operations. Full-Time. Geopolitics is "the study of the effects of Earth's geography (human and physical) on politics and international relations.". We provide geopolitical risk consulting and advisory services and solutions that are timely, market-relevant and forward-looking. Casper Wuite, 55 East 52nd Street 17 Fl Andrew Cuomo, Governor (NY) Bill & Melinda Gates Foundation. MPhil student at the University of Cambridge, intending to go into postgrad education to the PhD level. Independent data and analysis for opportunity sizing, local partner selection, government stakeholder assessment and risk assessment. A major global technology company offers another good illustration. Country risk mapping. "Heightened political risk globally raises the threshold for unrest, with implications for shipping, such as the ability to secure crews and access ports safely. Companies are walking a geopolitical tightrope. Leaders face an uncertain landscape. 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. The Great Decoupling. Global geopolitical risk and economic uncertainty have increased dramatically over the past decade, according to leading indices. Andrew S. Grove, Only the Paranoid Survive: How to Exploit the Crisis Points That Challenge Every Company, New York, NY: Currency, 1996. by 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. We support each client's unique risk profile . Geopolitical Intelligence Group (GIG) is a leading provider of intelligence services, offering strategic and operational insights into the complex geopolitical environment that affects businesses. 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 appetite for riskit helps create consensus across leadership on the issues. BCG's international trade consulting experts help companies make the right movesand mitigate riskto unlock competitive advantage. & account inquiries, For CA: Do not sell my personal information. Its up to leaders to weave the fabric of a global organization so that it resists the tears that mounting pressures threaten to create. Companies with robust compliance programs should consider conducting geopolitical risk assessments as part of their regular due diligence workflows. 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. 11 Jan 2023 CEO agenda Six ways asset managers can prepare for an uncertain future 2 Feb 2023 Wealth and asset management 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. 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. Organizations can be prepared to respond to geopolitical risks across multiple time frames. Every organization we studied relies on input and expertise from the field. Conduct time-efficient international policy monitoring and updates. Financial risks have probably never been more acute. Geopolitical forces at work in the economy. Advanced Country Analysis & Forecasting Norwegian Risk Consulting International - NRCI - is a geopolitical risk consultancy founded in 2010. Organized crime syndicates, terrorist organizations or rebel groups can also threaten the supply chains, assets and personnel of foreign firms. Each event carries it own risks, and each risk its own consequences. 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. Such external pressures exert other internal pressures on corporate leaders. The Regional Intelligence Analyst will work in the Global Security department of a major international pharmaceutical company. Questions to ask about key business risks arising from geopolitical and related crises Strategic, operational, financial and compliance risks are common level-one risk categories that board members and management need to consider. Whats their secret? One way to initiate a more strategic approach is by assessing the risks that matter the most to a business. Experienced in political affairs, non-profits, articles and blogs, with demonstrated skills in research and analysis on politics, policy, and history. Capital reserves, credit portfolios, investment policies and capital and debt profiles all demand constant scrutiny to adequately manage and mitigate risk. Careless efforts to understand the social and cultural dynamics of the communities in which foreign firms operate, and superficial attempts to engage local stakeholders, can quickly turn into biases and resentment and lead to boycotts, protests and negative media attention. (See Exhibit 1.) 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 Leaders can cultivate cohesiveness by bringing key stakeholders to the table to share views on a given engagement or project. 4 For example, the Iran nuclear talks have significant regional and global consequences. Meanwhile continuing shortages of raw materials (39%), logistics and warehousing (35%) and components (33%) are all . 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