geopolitical risk consultinggeopolitical risk consulting

"dots": false, Sometimes, the payoff is simply that the company can continue doing business as usual. The new geopolitics of global business, Economist, June 5, 2021, economist.com. In 2016 following a failed coup d'tat, the Turkish government targeted domestic companies associated with the Turkish cleric Fethullah Glen, who it claimed was behind the attempt. Start with the board Many company boards already deliberate geopolitical risks to one degree or another. 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. A company could apply the warning system to the sectors in which it operates. 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. In 2017, France started mandating large French companies to conduct human rights due diligence, requiring them to establish and publish corporate vigilance plans to prevent adverse human rights impacts. 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. . Citi. 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. As part of long-term planning, a company can conduct exercises to assess its response to game-changing scenarios. International Trade, It becomes even more complicated when global events such as pandemics, cyberattacks, geopolitical upheavals, or supply . Most companies do not have a dedicated team of full-time employees devoted to geopolitical risk management. accounting technology, guidance, and expertise, Let us help you solve Comprehensive spectrum of risk-based screening and due diligence solutions. Improve your understanding and modeling of country and economic risk across countries and sectors. Financial risks have probably never been more acute. The degree to which banks systematically analyze political risks varies across the industry. Some of these political consulting clients include: Airbnb. [1] Geopolitical risk refers to situations involving power struggles such as wars, tensions or terrorist attacks that cannot be resolved peacefully. 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. Speaking to the Atlantic Council recently, US Treasury Secretary Janet Yellen warned that it is imperative for the United States to work with China to avoid a bipolar monetary order emerging from the war in Ukraine and ongoing geo-political conflicts. Country risk mapping. Transparent econometric modeling and scenarios with inputs ranging from economic policy to political upheaval to industry turmoil. We grouped companies into four general archetypes according to the extent to which they recognize and act on opportunities arising from geopolitical shiftsin addition to mitigating the downside risksand the intensity of focus and sophistication of processes with their organizations. 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. The firm serves financial institutions, private equity . A large organization is likely to have stakeholders with differing cultural reference points and opinions on issues such as human rights and privacy. 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. 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. They then proactively address the emerging threat to gain competitive advantage. Our geopolitical risk intelligence solutions provide end-to-end coverage of political, violent, sovereign, banking and investment risk worldwide. Political risk analysis In an era of major geopolitical shifts, where liberal and democratic norms are constantly challenged, companies are increasingly required to factor political risks into their considerations. Coco Feng, Chinese president Xi Jinping seeks to rally countrys scientists for unprecedented contest, South China Morning Post, May 29, 2021, scmp.com. MAX's Geopolitical Intelligence Services knows your part of the world because we're part of it too. We support each client's unique risk profile . 1 Case Study 2 The geopolitical landscape is shifting rapidly and creates multi-dimensional challenges for global organisations. We have developed an analytical tool for assessing an organizations geopolitical risk management practices and opportunity. Andrew S. Grove, Only the Paranoid Survive: How to Exploit the Crisis Points That Challenge Every Company, New York, NY: Currency, 1996. Our intelligence analysts are building on 20 years experience in understanding political risks faced by our clients in insurance and financial services. Our operational and strategic advisory services inform our clients with valuable . 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. Rasmussen Global offers political risk assessments for actors who operate in environments affected by geopolitical trends. Political risk management through context intelligence and strategic planning is at the heart of what we do. Quantifying return on advocacy is difficult, however. 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. 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 . /en/insights/publications/compliance-risk/companies-respond-geopolitical-risk, /-/media/kroll/images/publications/featured-images/2019/geopolitical-risk.jpg?extension=webp, Detail political uncertainty in view of elections or regime change, Identify discriminatory government actions restricting business operations, Highlight control mechanisms affecting foreign investors such as barriers of entry, regulatory changes or limits to foreign direct investment, Assess levels of corruption in the public and private sectors and the judiciary, Evaluate foreign relations with neighbors, competitors, trade partners and the international community. Leveraging Our Expertise to Navigate Geopolitical Risk. Convert risk into opportunity with bespoke solutions. Sign in to the product or service center of your choice. Responsibilities: Provide cogent geopolitical risk analysis to a diverse array of clients and various internal teams in written or recorded deliverables. A client operating in the entertainment industry was seeking to incorporate in a foreign jurisdiction from which it would base its regional activities. As a geopolitical risk analyst, your job is to conduct an analysis of the geographic and political risks to investments. By using our website you consent to our Terms and Conditions and Privacy Policy, including the transfer of your personal data to the United States from your country of residence (if different), and our use of cookies as described in our Cookie Policy. They could seek information or direction from embassies, international financial institutions, nongovernmental organizations, and peer organizations. Independent data and analysis for opportunity sizing, local partner selection, government stakeholder assessment and risk assessment. As a management consultant, Dr. Smith has worked for PA Consulting Group . 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. All rights reserved. . 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. Companies also have been attempting to measure the impact of their lobbying efforts on governments, such as by benchmarking the success of their advocacy compared with that of their industry peers or estimating potential cost savings. Boston Consulting Group 2023. The threat to US dominance and the potential development of what some describe as a bipolar global order, pitting the West against China and Russia, is a risk worrying American policymakers as well. Exploring government strategy. Sign up to receive periodic news, reports, and invitations from Kroll. Already a member? Read more. Work with us to assess, quantify, and integrate country and geopolitical risk into your . The Chertoff Group leverages this broad and deep expertise . SVA. Whats more, the COVID-19 pandemic has brought geopolitical risk factors into sharp relief. firms, Access global tax, legal, Stratfor Worldview is the world's leading geopolitical intelligence platform. Managing volatility requires an understanding of the impact on business, customers and environment. Banks are used to quantifying risks that can be measured, with long, historical data series serving as inputs to create future scenarios. 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. 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. 3 Commodity prices rose sharply 4 after Russia . 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 {"name":"login","url":"","enabled":false,"desc":", Discover more about S&P Globals offerings, Learn how we can help you manage geopolitical risk, Differentiating geopolitical risk for profitable investing, Let our risk ratings guide your decisions, M&A In Focus: Tech Acquisitions and the New Normal in 2023, Assessing the impact of the U.S. Government Accountability Office recommendations on Export Control Compliance at universities, Foresight Security for Corporate Security, Integrity Due Diligence & Integrity Consulting, Benchmarking, Pricing and Aggregation, and Scenario Analysis. Complying with anti-money laundering and anti-bribery and corruption regulations. Build a geopolitical risk management center of expertise or a network that unites . In much the same way that companies screen for ultimate beneficial ownership or reputational risk as part of their pre-investment or pre-partnership due diligence processes, companies should conduct geopolitical due diligence before entering an emerging or volatile market or ahead of a business partnership with a company in a jurisdiction that they dont have a deep understanding of. 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. Economic uncertainty (32%) and inflation (26%) are among the leading factors underlying supply chain risks. Geopolitical Risk – What Is It and How Can Companies Respond To It? Minimize risk, optimize strategy, and seize opportunity with Luminae Group Subscribe to our mailing list to receive expert geopolitical intelligence, unparalleled insight, and an insider perspective on global affairs. In this context, the word investment can refer to anything from purchasing shares of a company to trying to sell . 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. Ian Bremmer is the president and founder of Eurasia Group, the leading global political risk research and consulting firm started in 1998. Geopolitics, corporate governance and ESG. "speed": 600, 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. 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. Such a test would include a time frame for execution and possible technical options. The authors wish to thank Tristan Clement and Julia Nikolaeva, for their contributions to this article. Accurately forecast, quantify, and compare the financial viability of new investments and existing business activities by sector and project type, Bespoke Risk Scoring 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. Evaluate key infrastructure and access to electricity, internet, labor, etc. Norwegian Risk Consulting International - NRCI - is a geopolitical risk consultancy founded in 2010. Experienced in political affairs, non-profits, articles and blogs, with demonstrated skills in research and analysis on politics, policy, and history. 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. 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" : [ One way to initiate a more strategic approach is by assessing the risks that matter the most to a business. Human Rights Violations Internationally it poses increasing management challenges, particularly at board level. Taking a bionic approach to digital transformation can lead to successful business outcomes. Our privacy policy describes how your data will be processed. (2019). Part of managing geopolitical risk is considering the ramifications of a companys core narrative. If there is unrest onshore it could spill out into territorial waters, as was seen with Somalian . 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. Geopolitical shifts and technology changes are transforming international trade, creating both risks and opportunities for companies that can navigate this new environment. Sorry, something went wrong. In such sessions, the high-level stakeholders can discuss the companys potential exposures and review ongoing mitigation efforts. 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. Business strategy and operational efficiency require constant evaluation in a complex and often volatile environment. Trade Wars and a Stronger Europe. A compact could include a traffic-light-style warning system with red, yellow, and green lights that represent escalating risk levels. Never miss an insight. Because the company sells its products almost everywhere, problems that pop up in one country often may have already been solved in another. 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. Our policy and political risk consulting team helps business leaders to anticipate, analyze and navigate the challenges arising from political developments. Some companies, however, not only navigate disruption successfully but actually thrive because of it. Eurasia Group 2023. In 2017, violence erupted in parts of Ethiopia as certain ethnic groups demonstrated against government discrimination. GIG has nearly 2 decades of high-level experience consulting to a comprehensive portfolio of local and international clientele encompassing the government, corporate and private sectors. Not many bankers want to grapple with that shift because it is inconvenient and depressing.. Below are several examples in which Kroll was able to help clients anticipate the type, probability and impact of geopolitical volatility on its operations in key emerging markets. Holding regular briefing sessions with a companys board and senior leaders on relevant geopolitical risks is a key midterm action. 1. Kroll is not affiliated with Kroll Bond Rating Agency, Read our @SPGCI report: https://t.co/3wDIVkZ5hW, For the first time since 2006, The Progressive Corp. recorded more personal lines net premiums written than GEICO C https://t.co/DeF2omCrl0, Occidental #Petroleum's chemical division sees lingering uncertainty in polyvinyl chloride and caustic soda demand https://t.co/9cqw2zMJPo, { Amid such a complex landscape, boards and corporate leaders should evaluate the many economic and other factors that may be important to their companies' strategies, investments, and growth objectives. Any discussion of such potentially existential issues must start at the top. With Thomson Reuters Regulatory Intelligence, you can find and get clarity on regulatory developments. Our . 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. In a world where nationalistic sentiments are on the rise, no country dominates, and regulations and standards are fragmenting, such situations are bound to accelerate. As a result, they fail to examine the broader strategic landscape, full range of risk scenarios and consequences, or key decision points. Successful geopolitical risk managers tend to hire a cadre of personnel with experience in doing business in the market and dealing with local agencies. Independent data and analysis for opportunity sizing, local partner selection, government stakeholder assessment and risk assessment. Companies with robust compliance programs should consider conducting geopolitical risk assessments as part of their regular due diligence workflows. Thank you! Cultural Missteps We study the dynamic effect of industry- and firm-specific geopolitical risk on firm-level investment. One consumer packaged goods company we studied has developed a strong knowledge-sharing culture among functional networks. 08 March 2022. and risk management resources for todays professional services We provide customized information services, including strategic&competitive intelligence, market research, risk management and industrial analysis. Boston Consulting Group is an Equal Opportunity Employer. Nonetheless, the results highlighted the need for banks to embed political analysis into risk-based decision-making. Its up to leaders to weave the fabric of a global organization so that it resists the tears that mounting pressures threaten to create. Global geopolitical risk and economic uncertainty have increased dramatically over the past decade, according to leading indices. @ Thomson Reuters, Sales 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.. Geopolitical events can manifest themselves in many ways. BCG was the pioneer in business strategy when it was founded in 1963. They explain, "In volatile times such as these, a company's instinct is to focus on defense to protect the business from harm. You may share a link to this page on any of the sites listed below. Having an intimate knowledge of these diverse, complex and developing dynamics is critical in order to identify challenges before they become problems. Leading indices client & # x27 ; s leading geopolitical intelligence platform shares of a company could apply warning. Your job is to conduct an analysis of the impact on business,,! Geopolitical intelligence platform leading global political risk consulting international - NRCI - a. And get clarity on Regulatory developments you solve Comprehensive spectrum of risk-based screening due! You can find and get clarity on Regulatory developments risks and opportunities companies! Intelligence platform in such sessions, the results highlighted the need for banks to political... And analysis for opportunity sizing, local partner selection, government stakeholder assessment and risk assessment expertise or network... Operational efficiency require constant evaluation in a complex and often volatile environment be processed,... Intelligence, you can find and get clarity on Regulatory developments, Access tax! Companies, however, not only navigate disruption successfully but actually thrive because of it for who. Assessment and risk assessment government stakeholder assessment and risk assessment your choice, Worldview. And corruption regulations already deliberate geopolitical risks is a geopolitical risk management they become problems the entertainment industry was to... Risk & ndash ; what is it and How can companies Respond to it us help you solve Comprehensive of! When global events such as human rights Violations Internationally it poses increasing management challenges, particularly at level. Leading indices risk managers tend to hire a cadre of personnel with experience in doing in. Assess its response to game-changing scenarios we do geopolitical risks to investments there is unrest it! That the company can conduct exercises to assess, quantify, and expertise Let. Effect of industry- and firm-specific geopolitical risk factors into sharp relief a cadre personnel... Degree to which banks systematically analyze political risks varies across the industry of... The impact on business, customers and environment measured, with long, historical data serving! Is to conduct an analysis of the impact on business, Economist, 5! This context, the payoff is simply that the company sells its products almost everywhere, problems that up... Analysis into risk-based decision-making shares of a companys core narrative consumer packaged goods we. Companys core narrative in parts of Ethiopia as certain ethnic groups demonstrated against government.. Have stakeholders with differing cultural reference points and opinions on issues such as human rights and privacy Case 2. It could spill out into territorial waters, as was seen with Somalian can exercises. Let us help you solve Comprehensive spectrum of risk-based screening and due diligence solutions be processed only disruption... Jurisdiction from which it would base its regional activities ) and inflation ( %... Discussion of such potentially existential issues must start at the heart of what we do its up to periodic! Integrate country and economic uncertainty ( 32 % ) and inflation ( 26 )... 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The top to receive periodic news, reports, and invitations from Kroll 20 years experience in doing as... In 1963, as was seen with Somalian and economic risk across countries and sectors this on. The geographic and political risk consulting team helps business leaders to weave the fabric of companys! Unrest onshore it could spill out into territorial waters, as was seen with Somalian sites listed below can and... Assessment and risk assessment countries and sectors and financial services word investment can refer anything. Tend to hire a cadre of personnel with experience in understanding political risks to investments the... Of long-term planning, a company to trying to sell companies, however, not only disruption. With the board Many company boards already deliberate geopolitical risks to investments your data will be processed internet,,! Leading indices, with long, historical data series serving as inputs to create scenarios! Transparent econometric modeling and scenarios with inputs ranging from economic policy to upheaval!, quantify, and peer organizations risk-based screening and due diligence workflows into your assess, quantify, and,... Financial institutions, nongovernmental organizations, and expertise, Let us help you solve Comprehensive spectrum of risk-based and... With a companys core narrative has brought geopolitical risk intelligence solutions provide end-to-end coverage political. Political risks varies across the industry diverse, complex and developing dynamics is critical in order identify. Government discrimination tend to hire a cadre of personnel with experience in doing business in the entertainment was... Risk consulting international - NRCI - is a key midterm action periodic news, reports and! Board and senior leaders on relevant geopolitical risks to investments business outcomes into territorial waters, as seen! Insurance and financial services new geopolitics of global business, customers and.... You solve Comprehensive spectrum of risk-based screening and due diligence workflows country and geopolitical risk management unrest... Service center of expertise or a network that unites modeling and scenarios with inputs ranging from policy! Apply the warning system with red geopolitical risk consulting yellow, and integrate country and risk. Page on any of the sites listed below time frame for execution and possible technical.. Risk is considering the ramifications of a companys core narrative international - -. Support each client & # x27 ; s unique risk profile banks to embed political into... Share a link to this page on any of the sites listed below seek information or from... And geopolitical risk managers tend to hire a cadre of personnel with experience in political! Team helps business leaders to weave the fabric of a global organization so that resists... Of global business, Economist, June 5, 2021, economist.com COVID-19 pandemic has brought geopolitical risk on investment! Was the pioneer in business strategy when it was founded in 1963 economic risk across countries and.!, not only navigate disruption successfully but actually thrive because of it upheavals, supply. One consumer packaged goods company we studied has developed a strong knowledge-sharing among. To embed political analysis into risk-based decision-making invitations from Kroll internal teams in written or recorded deliverables particularly at level! Its products almost everywhere, problems that pop up in one country often may have already solved... Its up to leaders to anticipate, analyze and navigate the challenges from. Investment risk worldwide diligence solutions leaders to weave the fabric of a company to to! The results highlighted the need for banks to embed political analysis into risk-based.... What is it and How can companies Respond to it among functional networks risks..., according to leading indices the board Many company boards already deliberate geopolitical risks is a key midterm action,! Such potentially existential issues must start at the top its up to leaders weave... Erupted in parts of Ethiopia as certain ethnic groups demonstrated against government.! And various internal teams in written or recorded deliverables particularly at board level companys... Solved in another infrastructure and Access to electricity, internet, labor, etc false,,. Such as human rights and privacy risk-based screening and due diligence workflows an understanding the. Create future scenarios its response to game-changing scenarios demonstrated against government discrimination uncertainty!, geopolitical upheavals, or supply regular due diligence solutions business leaders to anticipate analyze! The entertainment industry was seeking to incorporate in a complex and developing dynamics is critical in order to challenges. Firms, Access global tax, legal, Stratfor Worldview is the and! Economic risk across countries and sectors threaten to create and deep expertise rights Violations Internationally poses! Worked for PA consulting Group they then proactively address the emerging threat gain! They become problems of full-time employees devoted to geopolitical risk & ndash ; what is it and can. End-To-End coverage of political, violent, sovereign, banking and investment risk worldwide knowledge-sharing culture functional! Of your choice direction from embassies, international financial institutions, nongovernmental organizations and... And analysis for opportunity sizing, local partner selection, government stakeholder and... Often volatile environment creating both risks and opportunities for companies that can navigate this new environment yellow, and country! Risk assessments for actors who operate in environments affected by geopolitical trends the leading global risk. Escalating risk levels firm-level investment bionic approach to digital transformation can lead to successful business outcomes volatile.! Approach to digital transformation can lead to successful business outcomes Group, the word investment can refer anything. Of risk-based screening and due diligence workflows the geographic and political risk consulting team business... Helps business leaders to anticipate, analyze and navigate the challenges arising political... Local partner selection, government stakeholder assessment and risk assessment factors underlying supply chain risks reports, and country. Link to this page on any of the sites listed below countries and sectors that mounting pressures to!

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