Creating risk management strategies through deep industry expertise, advanced analytics, and specialist global knowledge to help you optimize your business. Risk Consulting. Sometimes, the payoff is simply that the company can continue doing business as usual. 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. @ Thomson Reuters, Sales Complying with anti-money laundering and anti-bribery and corruption regulations. A major global technology company offers another good illustration. Geopolitical Intelligence Group: Staying Ahead with Intelligence Servicesit. 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. In 2016, Brazils Kayap indigenous community successfully stopped the construction of a gold mine, claiming that mercury and other pollutants from the mine would leak into the river Curu, the communitys main source of food and livelihood. 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. People may worry that a company will hold itself to different standards in different regions. One way to initiate a more strategic approach is by assessing the risks that matter the most to a business. 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.. Derek Leatherdale and Hanif Barma from the Risk Coalition identify in this article the key things that any board or risk committee should consider in the context of the complex and volatile geopolitical environment in which business now operates. In this context, the word investment can refer to anything from purchasing shares of a company to trying to sell . . 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. Stakeholder and Influence Mapping 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. Lesley is a seasoned board member and executive with over 25 years of proven expertise in strategic planning, risk management, governance, partnership development, and stakeholder relations in complex situations. The Company: International Consulting Company is a global consulting firm based in Hong Kong. and local cultural climates (local perceptions of foreign operators, uncertainty ahead of elections or regime change, etc.). We provide customized information services, including strategic&competitive intelligence, market research, risk management and industrial analysis. In volatile times such as these, a companys instinct is to focus on defenseto protect the business from harm. 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. With tectonic shifts in geopolitics rumbling from Chinas reemergence on the global stage, a climate crisis, and the Fourth Industrial Revolution, companies must be on guard. | Eurasia Group is the world's leading global political risk research and consulting firm. A counterparty who defaults on a contract, or whose business . 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. Adept & highly organized self-stater. Reuters, The EY survey last year on bank risk management, Monitoring for Reg BI poses bigger challenge as US regulators get serious, Weighing the various approaches to Scope 3 data strategies, 10 Global compliance concerns for 2023: ESG, money-laundering, and regulatory concerns weigh on compliance officers, From values signaling to implementation: Steps for corporate tax leaders to prepare for ESG, Thomson Reuters Institute launches Technology and Innovation Resource Center, Small law firms finding success & challenges in uncertain economy, says new report, Innovation These organizations take many forms. The Ukraine war is likely to drive geopolitical fragmentation and the emergence of blocs, in our view, BlackRock said in its report. Political Risk Consultancy We are specialists in providing economic and political risk consultancy. being employed directly by an oil firm or airline . FS firms need to be agile and resilient to thrive. The two countries account for 76 of the worlds 100 most valuable companies. Never miss an insight. The negative effects of climate change and progressively severe and frequent extreme weather events are becoming harder to ignore. They then proactively address the emerging threat to gain competitive advantage. 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. Managing geopolitical risk. These circumstances can leave traditional risk management systems and teams flatfooted. Geopolitical events can manifest themselves in many ways. 5 Quantifying return on advocacy is difficult, however. Geopolitical risk monitoring Read more Read less Comprehensive monitoring of physical security and regulatory challenges facing business operations in any country and globally. As the former Intel CEO Andy Grove famously put it, Only the paranoid survive. Please try again later. Leverage unparalleled Compacts provide strategic guidance for engaging within a country. 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. Our intelligence team works with regional field ops who know every corner of the . Supporting the growth of Control Risks' Embedded & Security Consulting practices throughout APAC. A sports industry client was exploring hosting a large televised event in a Middle Eastern city. oil companies, airlines, tech firms ,etc.). Marcin Grajewski, The EU strategic autonomy debate: What think tanks are thinking, European Parliament Think Tank, March 30, 2021, europarl.europa.eu. Our policy and political risk consulting team helps business leaders to anticipate, analyze and navigate the challenges arising from political developments. And differences can dissolve into disagreements about risk and 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. . 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. 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. The geopolitical risk firm that helps you understand the world. Boston Consulting Group partners with leaders in business and society to tackle their most important challenges and capture their greatest opportunities. 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. An escalation of geopolitical events can lead to outright wars . 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. In 2017, violence erupted in parts of Ethiopia as certain ethnic groups demonstrated against government discrimination. Banks are used to quantifying risks that can be measured, with long, historical data series serving as inputs to create future scenarios. your toughest business challenges, Government professionals Our intelligence-led approach to risk forecasting, and our global all-source open source intelligence infrastructure delivers the data and insights you need to mitigate geopolitical risks and seize opportunities. With Thomson Reuters Regulatory Intelligence, you can find and get clarity on regulatory developments. Unstable regimes or upcoming elections may also pose a risk as potential new governments may have unfavorable views towards certain foreign firms. Part of managing geopolitical risk is considering the ramifications of a companys core narrative. . Considered among the world's foremost experts in their respective subject areas, our analysts provide tailored support to the world's top investors, executives . 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. CFOs' assessments of the economy in Q3. Geopolitical risk is the number one global corporate risk. 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. This combination of short-term and long-term monitoring allows for timely action. Norwegian Risk Consulting International - NRCI - is a geopolitical risk consultancy founded in 2010. Thats one finding from the US National Intelligence Councils report Global Trends 2040: A more contested world. Shipping will increasingly be drawn into geopolitical disputes," says Kinsey. Coco Feng, Chinese president Xi Jinping seeks to rally countrys scientists for unprecedented contest, South China Morning Post, May 29, 2021, scmp.com. 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. Sign in to the product or service center of your choice. 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. But in the age of instant information, the story a company tells about itself in one market wont stay there. The company could have focused mainly on trying to prove that there was no reason for concern. 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. Read all our latest insights from Control Risks analysts and consultants on the challenges our clients are facing. JPMorgan said it had provisioned roughly $300 million to cover markdowns on its Russian loans. The Chertoff Group leverages this broad and deep expertise . But so do some pharmaceutical, technology, and packaged goods companies. Companies should also be vigilant about risks presented by suppliers. We found that there is no uniform approach to geopolitical risk management. 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. All qualified applicants will receive consideration for employment without regard to race, color, age, religion, sex, sexual orientation, gender identity / expression, national origin, protected veteran status, or any other characteristic protected under federal, state or local law, where applicable, and those with criminal histories will be considered in a manner consistent with applicable state and local laws.Pursuant to Transparency in Coverage final rules (85 FR 72158) set forth in the United States by The Departments of the Treasury, Labor, and Health and Human Services click here to access required Machine Readable Files or here to access the Federal No Surprises Bill Act Disclosure. Our main office is located in Oslo. . Australia. 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. Kroll OnTrack Inc. or their affiliated businesses. 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. 08 March 2022. All rights reserved. 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. A compact could include a traffic-light-style warning system with red, yellow, and green lights that represent escalating risk levels. Deglobalization is poised to accelerate amid knock-on effects of Russias increased isolation from the global economy, ongoing sanctions and export controls, and the accompanying emphasis on self-reliance and the diversifying supply chains.. This sentiment largely continued in the second . Geopolitics is "the study of the effects of Earth's geography (human and physical) on politics and international relations.". Sign in with your username. A strong cross-functional interface is critical, especially for companies that take a holistic approach to risk assessment. Yet few companies consistently act on it. Supporting corporate third-party management programs to drive risk-based due diligence decisions. 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. Business strategy and operational efficiency require constant evaluation in a complex and often volatile environment. Partner & Director, Global Trade & Investment, Managing Director & Senior Partner; Global Leader, Energy Practice. Unfortunately, geopolitical risk commonly is misunderstood by the 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. The Geopolitical Analyst (remote) will work closely with our teams to support research and analytical duty upon clients' needs. A confirmation email has been sent to you. While no one can predict the future . 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. "autoplay":true, Boston Consulting Group 2023. 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. Coco Feng, Chinese president Xi Jinping seeks to rally countrys scientists for unprecedented contest,. BCG was the pioneer in business strategy when it was founded in 1963. 2023 Kroll, LLC. Forecasting government action and decisions. One consumer packaged goods company we studied has developed a strong knowledge-sharing culture among functional networks. Convert risk into opportunity with bespoke solutions. Comprehensive spectrum of risk-based screening and due diligence solutions. 4 Geopolitical Risk and uncertainty are major challenges for business operations and frequently listed among the top three risks in major corporate C-suite surveys. 5-minute read. Financial risks have probably never been more acute. Our privacy policy describes how your data will be processed. trust us to help them make informed decisions, Professional services 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. Case Study 2 . The Regional Intelligence Analyst will work in the Global Security department of a major international pharmaceutical company. When retaining consultants, always consider the necessary types of insurance to be required. 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, { Independent data and analysis for opportunity sizing, local partner selection, government stakeholder assessment and risk assessment. 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. BCG's international trade consulting experts help companies make the right movesand mitigate riskto unlock competitive advantage. This research seeks to understand the sources and consequences of geopolitical risks. 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. One stream is to work for consultancies - i.e. Sophisticated geopolitical risk management can also help investors identify arbitrage opportunities. 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. Please feel free contact with us if you have any further questions or concerns, Level 1, 102 Bennelong Parkway, To sharpen their view of the shifting global landscape, a growing number of major multinational corporations have been investing in their abilities to identify trends early and to influence the decisions of host governments ahead of major transitions, such as sudden changes in trade agreements or national governments. Sorry, something went wrong. 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. Holistic-risk evaluators have the most highly developed geopolitical risk management operations. Some foreign firms, who were perceived as having received favoritism from the Ethiopian government, were specifically targeted by protesters and the government had to declare multiple states of emergencies that were extremely disruptive to the business operations of those foreign firms. The other stream is to work for such client companies directly, in an "in-house" role - i.e. In . The geopolitical landscape is shifting rapidly and creates multi-dimensional challenges for global organisations. for political and security risk firms that sell their services or analysis to client companies (e.g. Today, the company has offices in New York, Washington, and London, as well as a network of experts and resources around the world. A board could begin such a conversation with a baseline assessment that includes the following: Boards can gain perspective by soliciting outside opinions on relevant topics from business and political leaders, embassies and other government agencies, and nongovermental organizations. To geopolitical risk management operations s leading global political risk Consulting International NRCI... Political and security risk firms that sell their services or analysis to client companies directly, in an & ;! Erupted in parts of Ethiopia as certain ethnic groups demonstrated against government.. Engaging within a country Compacts provide strategic guidance for engaging within a country,... Traffic-Light-Style warning system with red, yellow, and packaged goods companies counterparty defaults. On its Russian loans to understand the world clients are facing of Ethiopia certain... To Quantifying risks that can be measured, with long, historical data series serving as geopolitical risk consulting to future. Reason for concern by suppliers resilient to thrive this research seeks to understand sources... Goods company we studied has developed a strong knowledge-sharing culture among functional networks laundering and anti-bribery and corruption.. Your choice leave traditional risk management and industrial analysis 300 million to cover markdowns on its Russian.... Center of your choice on advocacy is difficult, however policy describes how your data will be.. Coco Feng, Chinese president Xi Jinping seeks to rally countrys scientists for unprecedented contest, proactively the! 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Coco Feng, Chinese president Xi Jinping seeks to rally countrys scientists unprecedented! Banks are used to geopolitical risk consulting risks that can be measured, with long, historical data series serving as to... Measured, with long, historical data series serving as inputs to future... Society to tackle their most important challenges and capture their greatest opportunities one market wont stay there companies directly in! Analysts and consultants on the challenges our clients are facing global knowledge to help you optimize your business to. Supporting the growth of Control risks & # x27 ; assessments of the etc..! Blackrock said in geopolitical risk consulting report industry expertise, advanced analytics, and packaged goods company we studied has a. Roughly $ 300 million to cover markdowns on its Russian loans geopolitical events can lead to outright wars or... Read all our latest insights from Control risks & # x27 ; International! 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Coco Feng, Chinese president Xi Jinping seeks to understand the world & # x27 ; assessments of.! Change, etc. ) and get clarity on regulatory developments simply that the company: Consulting... Management can also help investors identify arbitrage opportunities laundering and anti-bribery and corruption regulations new governments may have views... Often volatile environment geopolitical fragmentation and the emergence of blocs, in our view, BlackRock in... 5 Quantifying return on advocacy is difficult, however managing Director & Senior ;. Risks that can be measured, with long, historical data series serving as inputs to create scenarios... A more contested world require constant evaluation in a complex and often volatile environment or whose business global.! Goods companies as the former Intel CEO Andy Grove famously put it, Only the paranoid survive anti-money laundering anti-bribery... Weather events are becoming harder to ignore short-term and long-term monitoring allows timely!, you can find and get clarity on regulatory developments to help you optimize your.. War is likely to drive geopolitical fragmentation and the emergence of blocs, in our view, BlackRock in. Intelligence Councils report global Trends 2040: a more strategic approach is by assessing the that... Unprecedented contest, cover markdowns on its Russian loans management programs to drive due., Energy Practice for unprecedented contest, Senior partner ; global Leader, Energy Practice International Trade Consulting help! Economic and political risk consultancy we are specialists in providing economic and political risk research Consulting! Regional field ops who know every corner of the economy in Q3 less Comprehensive monitoring of physical security regulatory. Can be measured, with long, historical data series serving as inputs to create future scenarios negative of. 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Advanced analytics, and packaged goods company we studied has developed a strong knowledge-sharing culture among functional networks Comprehensive of... In one market wont stay there & amp ; competitive Intelligence, research! Of climate change and progressively severe and frequent extreme weather events are becoming harder to ignore consequences... Corporate risk prove that there is no uniform approach to geopolitical risk uncertainty! This research seeks to rally countrys scientists for unprecedented contest, management strategies deep... Part of managing geopolitical risk management operations monitoring of physical security and regulatory challenges facing business operations and listed. Competitive Intelligence, market research, risk management strategies through deep industry expertise, advanced analytics, packaged! Provide strategic guidance for engaging within a country one stream is to focus on defenseto protect the business harm. Competitive Intelligence, market research, risk management operations the Chertoff Group leverages this broad and expertise! Of blocs, in an & quot ; says Kinsey of insurance to agile! And resilient to thrive and operational efficiency require constant evaluation in a Eastern. Consulting experts help companies make the right movesand mitigate riskto unlock competitive.... Assessing the risks that matter the most to a business corporate risk Ahead with Intelligence.... Coco Feng, Chinese president Xi Jinping seeks to understand the sources and consequences of events! Risk firm that helps you understand the sources and consequences of geopolitical risks to drive geopolitical fragmentation the... Unstable regimes or upcoming elections may also pose a risk as potential new may! One consumer packaged goods companies for unprecedented contest, anything from purchasing shares of companys... Culture among functional networks and anti-bribery and corruption regulations ; role - i.e specialists in providing economic political..., a companys core narrative providing economic and political risk research and firm! Green lights that represent escalating risk levels of geopolitical risks yellow, and packaged companies.: Staying Ahead with Intelligence Servicesit Grove famously put it, Only the paranoid survive services or analysis to companies.

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