"autoplaySpeed":8000 MAX's Geopolitical Intelligence Services knows your part of the world because we're part of it too. Nonetheless, the results highlighted the need for banks to embed political analysis into risk-based decision-making. It becomes even more complicated when global events such as pandemics, cyberattacks, geopolitical upheavals, or supply . Some may, for commercial and strategic reasons, choose to strengthen ties to the countries where the companies are based. In addition to their normal duties, country chairs are responsible for liaising with all external stakeholdersincluding national and local governments, community organizations, and other enterprises. Our global multidisciplinary teams offer strategic legal and regulatory advice to help . Prudent geopolitical risk management also requires understanding how to deal with issues that cross borders. International Business, March 30, 2021 . 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. Our Asia-Pacific footprint is now a huge advantage.. Reporting focuses on both incident analysis and trend monitoring, providing forward looking assessments to facilitate proactive risk management decision making and asset . Compacts provide strategic guidance for engaging within a country. Turn qualitative country risk information into quantitative risk analysis and scores, Country Risk Investment Model The tools include calculating a risk-adjusted net present value for the companys business in any given country and setting thresholds for accepting risk on the basis of that countrys stability indices. Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. Geopolitics is personal. 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 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. Others may opt to identify as global entities because of the access it accords them to pursue business opportunities in emerging markets. Shipping will increasingly be drawn into geopolitical disputes," says Kinsey. In . A large organization is likely to have stakeholders with differing cultural reference points and opinions on issues such as human rights and privacy. 3 Commodity prices rose sharply 4 after Russia . Improve your understanding and modeling of country and economic risk across countries and sectors. 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. 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. Political Risk Consultancy We are specialists in providing economic and political risk consultancy. Leaders face an uncertain landscape. 4 The company could have focused mainly on trying to prove that there was no reason for concern. Our geopolitical risk intelligence solutions provide end-to-end coverage of political, violent, sovereign, banking and investment risk worldwide. The most successful opportunists carefully monitor any situation that may, at first glance, appear to be a threat. Site by Odgis+Co and ICVM Group. 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. Cyber risks are believed to have the deepest impact on supply chains rated by 34% as a high impact and 54% as medium. 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. However, it added, "only a subset of chief risk officers (CROs) recognize this." 1. Companies with robust compliance programs should consider conducting geopolitical risk assessments as part of their regular due diligence workflows. and risk management resources for todays professional services 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. The challenges that geopolitical risks create will get worse. 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. Sophisticated geopolitical risk management can also help investors identify arbitrage opportunities. 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. Large US banks were not alone in underestimating the determination of Russian president Vladimir Putin to ignite the biggest European conflict since World War II. 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. Winning companies take calculated risks to improve profitability through both tailwinds and headwinds. 1 They then proactively address the emerging threat to gain competitive advantage. 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. 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. It is by no means certain that they are ready for the next major crisis, experts say. Having an intimate knowledge of these diverse, complex and developing dynamics is critical in order to identify challenges before they become problems. Thank you! 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. Kroll is not affiliated with Kroll Bond Rating Agency, The degree to which banks systematically analyze political risks varies across the industry. The Ukraine war is likely to drive geopolitical fragmentation and the emergence of blocs, in our view, BlackRock said in its report. 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, { Companies may want to gather internal and external perspectives before deciding what to include in market compacts. Leverage unparalleled 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. Considered among the world's foremost experts in their respective subject areas, our analysts provide tailored support to the world's top investors, executives . Geopolitical Intelligence Group (GIG) is a leading provider of intelligence services, offering strategic and operational insights into the complex geopolitical environment that affects businesses. In-depth analysis, they recognize, does not come solely from algorithms. Our privacy policy describes how your data will be processed. 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. Not many bankers want to grapple with that shift because it is inconvenient and depressing.. 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. Krolls assessment analyzed the safety of the clients employees, evaluated local infrastructure and provided regional political and economic outlooks. On the other hand, most global companies deal with a range of localized geopolitical risks on a rolling basis. 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. Evaluate key infrastructure and access to electricity, internet, labor, etc. 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 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 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. Whats their secret? }, 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. Eurasia Group analysts leverage deep country and thematic expertise with quantitative methodologies to forecast fast-moving risks and opportunities. 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. 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. Managing geopolitical risk. Today, the company has offices in New York, Washington, and London, as well as a network of experts and resources around the world. Organizations can be prepared to respond to geopolitical risks across multiple time frames. Get the latest news and intelligence on global issues impacting business, politics, economics, military, security and energy. The ability to proactively navigate turbulence can mean the difference between prospering through a crisis or falling victim. Identifying and implementing responses to legislation and government action. Case Study 2 Whats more, the COVID-19 pandemic has brought geopolitical risk factors into sharp relief. Geopolitics, corporate governance and ESG. Designed for pro-active corporate security teams with granular forecasts and location specific risk analysis for 211 geographies. 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. {"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. Political risk consulting firms. 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. You may share a link to this page on any of the sites listed below. For example, the Iran nuclear talks have significant regional and global consequences. A strong cross-functional interface is critical, especially for companies that take a holistic approach to risk assessment. SVA ( www.stevevickersassociates.com) is a specialist international risk mitigation, corporate intelligence and risk consulting company. New York NY 10055. We support each client's unique risk profile . Not considering external perspectives runs the risk of following an approach thats too narrow or insular. Kroll OnTrack Inc. or their affiliated businesses. It is the first step in your regulatory compliance program because it allows you to track, flag and share regulations. Marcin Grajewski, The EU strategic autonomy debate: What think tanks are thinking, European Parliament Think Tank, March 30, 2021, europarl.europa.eu. Related Expertise: Please try again later. Our geopolitical risk intelligence solutions provide end-to-end coverage of political, violent, sovereign, banking and investment risk worldwide. "fade": true, Coco Feng, Chinese president Xi Jinping seeks to rally countrys scientists for unprecedented contest, South China Morning Post, May 29, 2021, scmp.com. An escalation of geopolitical events can lead to outright wars . 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. Programs should consider conducting geopolitical risk factors into sharp relief focused mainly on to. 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