geopolitical risk consulting
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. Case Study 3 As a management consultant, Dr. Smith has worked for PA Consulting Group . 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. And a narrative that works in one place could inhibit market opportunities in another or create sensitivities among regions. Eurasia Group's advisory and consulting business is built upon a research platform of leading political risk analysts and management consultants with deep country and sector expertise. As weve seen, informal functional networks throughout organizations can enable the rapid sharing of data and improve the identification and mitigation of geopolitical risks. | Learn more about Avery Benton's work experience, education, connections & more by visiting their . 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 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. 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 gain a deeper understanding of the geopolitical risk management practices of global companies, we conducted structured interviews with current and former senior executives of large organizations, with various headquarters locations, in ten diverse industries. Unfortunately, geopolitical risk commonly is misunderstood by the "autoplaySpeed":8000 The firm serves financial institutions, private equity . We provide geopolitical risk consulting and advisory services and solutions that are timely, market-relevant and forward-looking. Operations in countries with poor human rights records can cause supply chain disruptions but can also lead to reputational damage and give rise to class action lawsuits, public boycotts or stockholder divestment campaigns. "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. 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. Andrew Grant is a senior partner in McKinseys Auckland office; Ziad Haider, based in the Singapore office, is the head of geopolitical risk and a director of risk in Asia; and Alastair Levy, based in the London office, is the global director of risk. Country risk mapping. Geopolitical risk assessments should be tailored to focus on relevant industries and customized to target specific concerns depending on the type of investment, expansion or partnership. Reporting focuses on both incident analysis and trend monitoring, providing forward looking assessments to facilitate proactive risk management decision making and asset . To ingrain the importance of external relations throughout their organizations, some companies rotate high performers and potential candidates for upper management into country leadership positions, where risk management becomes one of their duties. The degree to which banks systematically analyze political risks varies across the industry. Consider the trade-offs of framing how the company talks about itself in a specific way, if that narrative could create conflicts with external or internal stakeholders, and what the potential remedies could be. Sophisticated geopolitical risk management can also help investors identify arbitrage opportunities. When retaining consultants, always consider the necessary types of insurance to be required. 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. Geopolitical Intelligence Group (GIG) is a leading provider of intelligence services, offering strategic and operational insights into the complex geopolitical environment that affects businesses. 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. For many companies, the strategic competition between China and the United States will top the list of standing risk issues to discuss. Some companies, however, not only navigate disruption successfully but actually thrive because of it. Geopolitical risk monitoring Read more Read less Comprehensive monitoring of physical security and regulatory challenges facing business operations in any country and globally. Companies must consider how to harness capabilities such as 5G and AI without falling victim to geopolitically based regulatory or reputational cross fire. being employed directly by an oil firm or airline . Please try again later. Unstable regimes or upcoming elections may also pose a risk as potential new governments may have unfavorable views towards certain foreign firms. Stratfor Worldview is the world's leading geopolitical intelligence platform. 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. 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. The negative effects of climate change and progressively severe and frequent extreme weather events are becoming harder to ignore. Similarly, the Netherlands recently adopted legislation to prevent the use of child labor within the supply chains of Dutch companies and foreign companies doing business in the region. In the aftermath of the US presidential election, CFOs appeared very optimisticwith that quarter's survey registering the sharpest uptick in sentiment in its seven-year history. Our policy and political risk consulting team helps business leaders to anticipate, analyze and navigate the challenges arising from political developments. Companies should also be vigilant about risks presented by suppliers. Forecasting government action and decisions. 3. 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. Any discussion of such potentially existential issues must start at the top. Such external pressures exert other internal pressures on corporate leaders. These organizations take many forms. We found that there is no uniform approach to geopolitical risk management. The two countries account for 76 of the worlds 100 most valuable companies. trust us to help them make informed decisions, Professional services Companies with robust compliance programs should consider conducting geopolitical risk assessments as part of their regular due diligence workflows. The authors wish to thank Tristan Clement and Julia Nikolaeva, for their contributions to this article. We help companies anticipate and quantify critical external strategic business risks that might adversely impact their investments, personnel, interests, and assets anywhere in the world. 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. Adaptive artificial intelligence combined with localised geopolitical risk expertise from Control Risks. 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. It is by no means certain that they are ready for the next major crisis, experts say. . Work with us to assess, quantify, and integrate country and geopolitical risk into your . Human Rights Violations Each event carries it own risks, and each risk its own consequences. Partner & Director, Global Trade & Investment, Managing Director & Senior Partner; Global Leader, Energy 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. Companies are walking a geopolitical tightrope. But so do some pharmaceutical, technology, and packaged goods companies. 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. 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. The risks to be assessed could be financial, hazardous to peoples safety, legal, political, or reputational. Sometimes, the payoff is simply that the company can continue doing business as usual. If companies operate in markets that are high risk because of political instability or the threat of international sanctions, they can develop market-specific assessments or compacts that fuse corporate strategy and risk management. Evaluate key infrastructure and access to electricity, internet, labor, etc. Geopolitical events can manifest themselves in many ways. FS firms face a "trilemma" of rising inflation, energy insecurity and disrupted supply chains, as well as longer-term geopolitical change and megatrends. And they may have to grapple with a global workforce with divergent views on issues such as data privacy and human rights. The Volatility and Risk Institute has embarked on a study of geopolitical risk and its relation to financial risks. The geopolitical risk firm that helps you understand the world. As a result, the company was able to significantly expand its cloud business and gain advantage over competitors that were slower to act. Interviews with Geopolitical Analyst Ian Bremmer. Stay connected with us and get all latest updates. Discussions can focus on three risk areas: brand and reputation; operational issues, such as cybersecurity strategy; and products, services, and partnerships. As part of long-term planning, a company can conduct exercises to assess its response to game-changing scenarios. Advanced Country Analysis & Forecasting Geopolitical shifts and technology changes are transforming international trade, creating both risks and opportunities for companies that can navigate this new environment. Companies with robust compliance programs should consider conducting geopolitical risk assessments as part of their regular due diligence workflows. Economic and Geopolitical scenarios 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 }, 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. Trade Wars and a Stronger Europe. The most successful opportunists carefully monitor any situation that may, at first glance, appear to be a threat. 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. Global Trends 2040: A more contested world, US National Intelligence Council, March 2021, dni.gov. We help companies anticipate and quantify critical external strategic business risks that might adversely impact their investments, personnel, interests, and assets anywhere in the world. Designed for pro-active corporate security teams with granular forecasts and location specific risk analysis for 211 geographies. 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. 5 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. 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 Because the company sells its products almost everywhere, problems that pop up in one country often may have already been solved in another. Our Asia-Pacific footprint is now a huge advantage.. Krolls geopolitical risk report informed the client of the regulatory and business environment in the country and the particular city, the level of corruption in the private and public sectors and identified potential cultural and societal issues that may have impacted the clients human operations. Such a consensus can create a set of guiding principlesand, as importantly, a set of trust-based relationships and mutual understanding across the organizationthat enables rapid, purposeful reaction grounded in a shared set of priorities when risk scenarios play out. @ Thomson Reuters, Sales Nonetheless, the results highlighted the need for banks to embed political analysis into risk-based decision-making. 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. One energy company, for example, established a country chair position, which is typically assigned to the most senior business executive in a given country and is seen as a prestigious step toward advancement to top management. Copyright 2018-2022 Geopolitical Intelligence Group a division of the Praesidium Advisory Group, Get timely updates from your favorite products. A large organization is likely to have stakeholders with differing cultural reference points and opinions on issues such as human rights and privacy. 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. Integrated solutions - consulting, risk management and broking - to help organizations prevent and protect against interlinked geopolitical risks. Learn More link icon. Utilize our expert insight and data to get risk scores tailored to your specific metrics, Benchmarking, Pricing and Aggregation, and Scenario Analysis 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. Organizations can be prepared to respond to geopolitical risks across multiple time frames. iStrategic LLC is a Political Risk Analysis and Consulting firm specializing in the Middle East and North Africa region. Conduct time-efficient international policy monitoring and updates. Site by Odgis+Co and ICVM Group. But the discussions often focus on a specific investment, project, or market entry or exit. BCG X disrupts the present and creates the future by building bold new tech products, services, and businesses. | Eurasia Group is the world's leading global political risk research and consulting firm. US Wants To Remove Iran From UN Womens Commission, Geopolitical Intelligence Group: Staying Ahead with Intelligence Services. International Business, March 30, 2021 Managing risk in today's environment is complex. In extreme cases, a disruptive event can jeopardize an entire business. 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. Regular due diligence workflows exert other internal pressures on corporate leaders experience, education connections. And consulting firm specializing in the Middle East and North Africa region may! Crisis, experts say stakeholders with differing cultural reference points and opinions on issues such as human.. Wish to thank Tristan Clement and Julia Nikolaeva, for their contributions to this article today... There is no uniform approach to geopolitical risk expertise from Control risks more. 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