(See Exhibit 1.) for political and security risk firms that sell their services or analysis to client companies (e.g. your toughest business challenges, Government professionals 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. 08 March 2022. 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. The new geopolitics of global business, Economist, June 5, 2021, economist.com. 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 Geopolitical Intelligence Group is a leading geopolitical risk management advisory firm. We look to pool talents and expand our network around the globe to better serve our clients' unique interests in different respects. The most successful opportunists carefully monitor any situation that may, at first glance, appear to be a threat. Financial risks have probably never been more acute. Companies must consider how to harness capabilities such as 5G and AI without falling victim to geopolitically based regulatory or reputational cross fire. 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 events can manifest themselves in many ways. Because the company sells its products almost everywhere, problems that pop up in one country often may have already been solved in another. We are constantly searching for overlooked assets where we can navigate the risk, while others are unwilling or unable to, an executive of a private-equity firm with a decades-long record of success in emerging markets told us. Partner & Director, Global Trade & Investment, Managing Director & Senior Partner; Global Leader, Energy Practice. For decades, companies built their . But so do some pharmaceutical, technology, and packaged goods companies. Forecasting government action and decisions. A company could apply the warning system to the sectors in which it operates. Full-Time. 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. Related Expertise: 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. 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. Seek to continuously measure and monitor the impact of geopolitical risk management activities on the business. <br><br>Her expertise is sought out and appreciated by multinationals, Crown corporations, associations, small businesses, employee-owned companies, nonprofits, and First Nations . A holistic view uses four lenses: global geopolitical trends and scenarios, ongoing operations, investment decision making, and frequent monitoring of evolving events and development that can affect the business. While no one can predict the future . Stratfor Worldview is the world's leading geopolitical intelligence platform. Eurasia Group analysts leverage deep country and thematic expertise with quantitative methodologies to forecast fast-moving risks and opportunities. 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. & account inquiries, For CA: Do not sell my personal information. The organization saw a troubling trend in a number of key markets that could potentially threaten its growing cloud-storage business: mounting anxiety on the part of policymakers and customers, who were worried that local governments could access confidential data kept on servers in certain countries. A strong cross-functional interface is critical, especially for companies that take a holistic approach to risk assessment. 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. The ability to proactively navigate turbulence can mean the difference between prospering through a crisis or falling victim. 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. 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. Andrew Cuomo, Governor (NY) Bill & Melinda Gates Foundation. Please try again later. accounting technology, guidance, and expertise, Let us help you solve Reputational risk could be amplified if any or all of these risks are not mitigated properly. Site by Odgis+Co and ICVM Group. A counterparty who defaults on a contract, or whose business . Case Study 1 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. Already a member? Key features of our political risk service include: Political risk analysis and assessments. Many governments have introduced laws requiring companies to take actions to mitigate the risk of adverse human rights impacts. 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. legal content, expertise, and technology, Find essential resources 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. A compact could include a traffic-light-style warning system with red, yellow, and green lights that represent escalating risk levels. Leaders face an uncertain landscape. There are no reliable historical streams of data that one can easily plug into a model. All areas of the globe are covered by our seasoned team of subject matter experts, national security advisors, consultants, analysts, investigators, and in-field agents. We believe that political science, sector/country expertise, and macroeconomics can be utilized to guide clients through volatile markets and build future value. Some may, for commercial and strategic reasons, choose to strengthen ties to the countries where the companies are based. Eurasia Group 2023. We offer a unique combination of advanced analytical methods and an innate understanding of intelligence gathering other security sources don't possess. 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. 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. 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. American Express. World Path Consulting San Francisco, CA Quick Apply Remote. . Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. "autoplay":true, These organizations take many forms. Leverage unparalleled Conduct time-efficient international policy monitoring and updates. Please feel free contact with us if you have any further questions or concerns, Level 1, 102 Bennelong Parkway, 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. Risk entrepreneurs also take a holistic approach to geopolitical risk management, but they do so in a less structured and centralized way. Violence and Civil Unrest We call these archetypes holistic-risk evaluators, risk entrepreneurs, systemic-risk managers, and nascent-risk managers. Yet they also have highly developed risk management organizations and processes. . As a result, they fail to examine the broader strategic landscape, full range of risk scenarios and consequences, or key decision points. 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. Considered among the world's foremost experts in their respective subject areas, our analysts provide tailored support to the world's top investors, executives . Channeling the policy debates under way in the European Union, 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. The Company: International Consulting Company is a global consulting firm based in Hong Kong. Supporting the growth of Control Risks' Embedded & Security Consulting practices throughout APAC. 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" : [ 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. We provide foresight to proactively identify, manage, and mitigate risks and seize opportunities. Every organization we studied relies on input and expertise from the field. Stakeholder and Influence Mapping 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. "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 with robust compliance programs should consider conducting geopolitical risk assessments as part of their regular due diligence workflows. In 2017, violence erupted in parts of Ethiopia as certain ethnic groups demonstrated against government discrimination. 5 Political risk consulting firms. 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. Business strategy and operational efficiency require constant evaluation in a complex and often volatile environment. The Geopolitical Analyst (remote) will work closely with our teams to support research and analytical duty upon clients' needs. Companies are walking a geopolitical tightrope. Any investment in taxable fixed-income securities is subject to certain risks, including credit risk, interest-rate risk, foreign risk, and currency risk. 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. Idiosyncratic geopolitical riskconstructed using the transcripts of firms' earnings calls, and Yet few companies consistently act on it. 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