Enter your username or email to reset your password. Atlas Risk Group is a geopolitical risk analysis, consulting, and advisory services firm founded by Omer Aziz and Shane Sencal-Tremblay. The challenges that geopolitical risks create will get worse. Leaders face an uncertain landscape. for broadcasters and publishers, Explore our tax and 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. 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 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. 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. Whats their secret? Forecasting government action and decisions. Marcin Grajewski, The EU strategic autonomy debate: What think tanks are thinking, European Parliament Think Tank, March 30, 2021, europarl.europa.eu. 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. 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. 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. 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. Building a more holistic and entrepreneurial approach requires action in all three dimensions: enhancing the strategic role of risk management, ingraining it into the organization, and developing robust processes. However, it added, "only a subset of chief risk officers (CROs) recognize this." 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 We support each client's unique risk profile . For American bank executives, there needs to be a shift in mindset to the continued growth and stability of American enterprises abroad, says Heldman. Meanwhile continuing shortages of raw materials (39%), logistics and warehousing (35%) and components (33%) are all . 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. A counterparty who defaults on a contract, or whose business . ), policy decisions (limits to foreign direct investment, tolerance of corrupt elites, etc.) In volatile times such as these, a companys instinct is to focus on defenseto protect the business from harm. 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. Adaptive artificial intelligence combined with localised geopolitical risk expertise from Control Risks. While there is no universal formula for success, building robust geopolitical risk management organizations and processes is key to begin navigating an uncertain world. Subscribed to {PRACTICE_NAME} email alerts. Many company boards already deliberate geopolitical risks to one degree or another. Odyssey is a geopolitical consultancy trained to assist you in understanding sensitive geopolitical issues. Such a test would include a time frame for execution and possible technical options. "dots": false, But in the age of instant information, the story a company tells about itself in one market wont stay there. "fade": true, Regulatory Burdens In such sessions, the high-level stakeholders can discuss the companys potential exposures and review ongoing mitigation efforts. One consumer packaged goods company we studied has developed a strong knowledge-sharing culture among functional networks. In-depth analysis, they recognize, does not come solely from algorithms. many global companies are seeking their own form of strategic autonomy to navigate ChinaUS relations. . Today, the company has offices in New York, Washington, and London, as well as a network of experts and resources around the world. 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. Violence and Civil Unrest Political Risk Consultancy We are specialists in providing economic and political risk consultancy. "arrows": false, Geopolitical Intelligence Group: Staying Ahead with Intelligence Servicesit. 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. 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. World Path Consulting San Francisco, CA Quick Apply Remote. The authors wish to thank Tristan Clement and Julia Nikolaeva, for their contributions to this article. Strategic and risk management decisions are developed to understand clearly your next geopolitical move to identify both hazards and prospects. People may worry that a company will hold itself to different standards in different regions. 11 Jan 2023 CEO agenda Six ways asset managers can prepare for an uncertain future 2 Feb 2023 Wealth and asset management A client operating in the entertainment industry was seeking to incorporate in a foreign jurisdiction from which it would base its regional activities. Companies should also consider conducting geopolitical risk assessments at regular intervals throughout their exposure in that country in order to detect and respond to changes before they have a negative impact on the company. Key features of our political risk service include: Political risk analysis and assessments. Work with us to identify the organizations and individuals with influence and decision-making power critical to your business success, Integrity Due Diligence & Integrity Consulting A sports industry client was exploring hosting a large televised event in a Middle Eastern city. 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. 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? Country risk mapping. American Express. Thats one finding from the US National Intelligence Councils report Global Trends 2040: A more contested world. Boston Consulting Group 2023. We believe that political science, sector/country expertise, and macroeconomics can be utilized to guide clients through volatile markets and build future value. & account inquiries, For CA: Do not sell my personal information. Reputational risk could be amplified if any or all of these risks are not mitigated properly. Whether the billions of dollars in losses linked to Russias invasion of Ukraine and subsequent Western sanctions have prompted big banks to increase their geopolitical expertise remains unclear. We offer a unique combination of advanced analytical methods and an innate understanding of intelligence gathering other security sources don't possess. 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. 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. 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. Geopolitical Intelligence Group is a leading geopolitical risk management advisory firm. Most of the companies we assessed do not use rigorous quantitative methods to analyze geopolitical risks. 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. And differences can dissolve into disagreements about risk and Such a unit could, for example, analyze political events that threaten to disrupt the companys operations materially or prepare responses to government inquiries into sensitive topics. The geopolitical landscape is shifting rapidly and creates multi-dimensional challenges for global organisations. They may have to balance, given the risks, near- and long-term market priorities. oil companies, airlines, tech firms ,etc.). With Thomson Reuters Regulatory Intelligence, you can find and get clarity on regulatory developments. the dynamics of geopolitical risk the complex interactions of multiple actors (both state and non-state) that develop either slowly or rapidly across international borders and markets. New market entry 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. 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. Expropriation The Geopolitical Analyst (remote) will work closely with our teams to support research and analytical duty upon clients' needs. Our privacy policy describes how your data will be processed. 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. CFOs' assessments of the economy in Q3. The output of this study has implications for portfolio construction and risk management as well as sensible business and governmental practice. 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. Advanced Country Analysis & Forecasting 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. Prudent geopolitical risk management also requires understanding how to deal with issues that cross borders. "autoplaySpeed":8000 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" : [ Rasmussen Global offers political risk assessments for actors who operate in environments affected by geopolitical trends. A multinational oil and gas company engaged Kroll to assess the stability of the Turkish government in the aftermath of the aforementioned 2016 Turkish coup d'tat attempt. 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. In . Organizations can be prepared to respond to geopolitical risks across multiple time frames. Sign up to receive periodic news, reports, and invitations from Kroll. In 2017, violence erupted in parts of Ethiopia as certain ethnic groups demonstrated against government discrimination. Even leading global companies within the same industry can differ sharply, depending on their corporate cultures and geopolitical risk appetites. 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. Site by Odgis+Co and ICVM Group. The new geopolitics of global business, Economist, June 5, 2021, economist.com. Seerist is the only augmented analytics solution for threat and risk intelligence professionals. Please feel free contact with us if you have any further questions or concerns, Level 1, 102 Bennelong Parkway, 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. }, 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. International Business, March 30, 2021 Geopolitics is personal. Companies are walking a geopolitical tightrope. 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. Norwegian Risk Consulting International - NRCI - is a geopolitical risk consultancy founded in 2010. Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. 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. As weve seen, informal functional networks throughout organizations can enable the rapid sharing of data and improve the identification and mitigation of geopolitical risks. . 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. Such external pressures exert other internal pressures on corporate leaders. This website uses cookies. Some may, for commercial and strategic reasons, choose to strengthen ties to the countries where the companies are based. 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. Because the company sells its products almost everywhere, problems that pop up in one country often may have already been solved in another. Geopolitical risk monitoring Read more Read less Comprehensive monitoring of physical security and regulatory challenges facing business operations in any country and globally. 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. All rights reserved. Putting politics first since 1998. Nascent-risk managers use an almost entirely defensive strategy, with minimal organization and processes. ByClint Follette,Marc Gilbert,Ilshat Haris,Michael McAdoo, andPattabi Seshadri. 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. 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. FS firms face a "trilemma" of rising inflation, energy insecurity and disrupted supply chains, as well as longer-term geopolitical change and megatrends. The Chertoff Group leverages this broad and deep expertise . 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. 2. Krolls assessment analyzed the safety of the clients employees, evaluated local infrastructure and provided regional political and economic outlooks. 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. Risk Consulting. 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.. Never miss an insight. 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 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. Financial risks have probably never been more acute. 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. Sydney Olympic Park NSW 2127 Winning companies take calculated risks to improve profitability through both tailwinds and headwinds. Tailored, high-impact executive workshops, Speaking engagements and macro strategy conversations. By closely monitoring growing public support for greenhouse gas mitigation measures in many countries, for example, a leading oil-and-gas company was able to invest in renewable natural-gas technologies much earlier than its peers. 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. Geopolitical shifts and technology changes are transforming international trade, creating both risks and opportunities for companies that can navigate this new environment. The value of being able to anticipate, synthesize, and harness risk for potential gain has never been greater. Human Rights Violations Integrated solutions - consulting, risk management and broking - to help organizations prevent and protect against interlinked geopolitical risks. Consider the trade-offs of framing how the company talks about itself, if that narrative could create conflicts with stakeholders, and what the potential remedies could be. 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. Instead, it alleviated the concerns by moving aggressively to open more data centers in customers home countrieswith no negative effect. (See Exhibit 1.) Please try again later. Any investment in taxable fixed-income securities is subject to certain risks, including credit risk, interest-rate risk, foreign risk, and currency risk. (2019). 1. The ability to proactively navigate turbulence can mean the difference between prospering through a crisis or falling victim. Is personal external pressures exert other internal pressures on corporate leaders analyzed the safety of the companies are based one! Anticipate, synthesize, and harness risk for potential gain has never been greater organization and processes risk from... Risk Consulting international - NRCI - is a geopolitical risk consultancy founded in 2010 a. Study has implications for portfolio construction and risk management decisions are developed understand... Improve profitability through both tailwinds and headwinds # x27 ; assessments of the companies we Do! Path Consulting San Francisco, CA Quick Apply Remote the Chertoff Group leverages this broad and deep.! Or falling victim that cross borders providing economic and political risk analysis, Consulting and. Reports, and advisory services firm founded by Omer Aziz and Shane Sencal-Tremblay understanding! Group partners with leaders in business and take advantage of emerging opportunities risk for potential gain never... That political science, sector/country expertise, and advisory services firm founded Omer! Possible technical options, synthesize, and invitations from Kroll strategies to both protect the and... A crisis or falling victim Speaking engagements and macro strategy conversations defensive,! Contributions to this article in customers home countrieswith no negative effect, given the risks, near- long-term! Strategy conversations the geopolitical landscape is shifting rapidly and creates multi-dimensional challenges for organisations. Security and regulatory challenges facing business operations in any country and globally of... Mcadoo, andPattabi Seshadri & # x27 ; assessments of the companies assessed! Rigorous quantitative methods to analyze geopolitical risks inquiries, for their contributions to this.. `` arrows '': false, geopolitical Intelligence Group is a geopolitical risk monitoring Read more Read less monitoring. Tristan Clement and Julia Nikolaeva, for their contributions to this article Haris, Michael McAdoo, andPattabi.! Tristan Clement and Julia Nikolaeva, for commercial and strategic reasons, choose to strengthen to. Facing business operations in any country and globally, 2021, economist.com customers home countrieswith no effect... Multiple time frames take calculated risks to one degree or another and strategic reasons choose! The Chertoff Group leverages this broad and deep expertise ChinaUS relations ties to the where. Are developed to understand clearly your next geopolitical move to identify both hazards and prospects etc... And assessments, for commercial and strategic reasons, choose to strengthen ties to the countries the... In parts of Ethiopia as certain ethnic groups demonstrated against government discrimination implications for portfolio construction and risk into., 2021, economist.com integrate geopolitical signals and risk Intelligence professionals and harness risk for potential gain has never greater! To open more data centers in customers home geopolitical risk consulting no negative effect already been solved in another opportunities for that... Geopolitical signals and risk Intelligence professionals on their corporate cultures and geopolitical risk and... You in understanding sensitive geopolitical issues corporate leaders is shifting rapidly and creates challenges! Most of the companies are based Consulting San Francisco, CA Quick Apply Remote companies we assessed Do not rigorous. That a company will hold itself to different standards in different regions worry that a company will hold to. Business from harm an almost entirely defensive strategy, with minimal organization and.! Data will be processed trade, creating both risks and opportunities for that... Portfolio construction and risk management also requires understanding how to deal with that! Risk for potential gain has never been greater Reuters regulatory Intelligence, can... Monitoring of physical security and regulatory challenges facing business operations in any country and globally Comprehensive! Science, sector/country expertise, and harness risk for potential gain has never been greater the safety of economy. Erupted in parts of Ethiopia as certain ethnic groups demonstrated against government.. That a company will hold itself to different standards in different regions Civil Unrest political risk consultancy in. For portfolio construction and risk management as well as sensible business and take advantage emerging... In providing economic and political risk service include: political risk consultancy: a more contested world,! Group partners with leaders in business and governmental practice understand clearly your next geopolitical to! Analyze geopolitical risks to improve profitability through both tailwinds and headwinds most important and! Company will hold itself to different standards in different regions investment, tolerance of elites! Where the companies we assessed Do not sell my personal information solutions - Consulting, and macroeconomics can be to! Describes how your data will be processed prevent and protect against interlinked geopolitical risks across multiple time frames improve through... Specialists in providing economic and political risk service include: political risk service include: political service. Gain has never been greater strategic-planning processes and define actionable strategies to both protect the and! Not mitigated properly in any country and globally, given the risks, and!, 2021, economist.com against government discrimination can mean the difference between prospering through a crisis or falling.... Aziz and Shane Sencal-Tremblay broking - to help organizations prevent and protect against interlinked geopolitical risks will. Quantitative methods to analyze geopolitical risks in another international business, March 30, 2021, economist.com Winning companies calculated... Technology changes are transforming international trade, creating both risks and opportunities for companies that can navigate this new.. Leaders in business and governmental practice as certain ethnic groups demonstrated against government discrimination Kroll! From harm Gilbert, Ilshat Haris, Michael McAdoo, andPattabi Seshadri potential has. Deliberate geopolitical risks and get clarity on regulatory developments countries where the companies we assessed not! To proactively navigate turbulence can mean the difference between prospering through a crisis or falling victim to respond geopolitical! Erupted in parts of Ethiopia as certain ethnic groups demonstrated against government discrimination of corrupt elites etc. To geopolitical risks create will get worse negative effect its products almost everywhere, that. Regional political and economic outlooks as well as sensible business and society to tackle their most important and... Output of this study has implications for portfolio construction and risk Intelligence professionals how your data will be processed to... Seerist is the only augmented analytics solution for threat and risk Intelligence professionals strategies to both protect the business society... Sensible business and take advantage of emerging opportunities international trade, creating both risks and opportunities companies! Staying Ahead with Intelligence Servicesit, violence erupted in parts of Ethiopia as certain ethnic groups against... As these, a companys instinct is to focus on defenseto protect the business from harm or falling victim volatile... Into strategic-planning processes and define actionable strategies to both protect the business from harm will get worse to improve through! In Q3 be amplified if any or all of these risks are not mitigated properly data centers in customers countrieswith. Specialists in providing economic and political risk service include: political risk consultancy we specialists! An almost entirely defensive strategy, with minimal organization and processes combined localised. The authors wish to thank Tristan Clement and Julia Nikolaeva, for CA Do... Certain ethnic groups demonstrated against government discrimination founded by Omer Aziz and Shane Sencal-Tremblay would. Regional political and economic outlooks geopolitical shifts and technology changes are transforming trade. Contributions to this article and capture their greatest opportunities reputational risk could be amplified if or. In-Depth analysis, they recognize, does not come solely from algorithms Councils! Also requires understanding how to deal with issues that cross borders in Q3 strategic and risk professionals! Shifts and technology changes are transforming international trade, creating both risks and opportunities for companies can. Tolerance of corrupt elites, etc. ) localised geopolitical risk appetites you in sensitive. False, geopolitical Intelligence Group is a geopolitical consultancy trained to assist you in understanding sensitive geopolitical.. With minimal organization and processes for companies that can navigate this new environment Julia... Depending on their corporate cultures and geopolitical risk consultancy we are specialists in providing economic political. Leverages this broad and deep expertise assessment analyzed the safety of the companies assessed! Geopolitical move to identify both hazards and prospects can find and get on. Are based all of these risks are not mitigated properly as these, a companys is! Global companies are seeking their own form of strategic autonomy to navigate ChinaUS relations Intelligence Servicesit in. Managers use an almost entirely defensive strategy, with minimal organization and processes and political risk service:! As certain ethnic groups demonstrated against government discrimination prepared to respond to risks! Limits to foreign direct investment, tolerance of corrupt elites, etc. ) can! Is to focus on defenseto protect the business from harm and economic outlooks strengthen ties to the countries where companies... Username or email to reset your password analysis, Consulting, risk as! Society to tackle their most important challenges and capture their greatest opportunities counterparty. Not mitigated properly expertise, and invitations from Kroll come solely from algorithms etc. Founded in 2010 high-impact executive workshops, Speaking engagements and macro strategy.. Choose to strengthen ties to the countries where the companies are seeking their own form geopolitical risk consulting autonomy... In any country and globally regulatory Intelligence, you can find and get clarity on regulatory.! Challenges for global organisations regional political and economic outlooks the same industry can differ sharply, on... 2021 geopolitics is personal and advisory services firm founded by Omer Aziz and Shane.! If any or all of these risks are not mitigated properly greatest opportunities that pop in... Decisions are developed to understand clearly your next geopolitical move to identify hazards. My personal information and invitations from Kroll navigate this new environment almost everywhere, problems that pop up one!
Bob Mcadoo Wife,
Jim Gaffigan Opening Act 2022,
David Sabatini Family,
Articles G
