NEW RULES OF THE GAME
The COVID-19 pandemic and the Russian invasion of Ukraine have accelerated the drivers of geopolitical change, entrenching the bipolar confrontation between the US and China, the reconfiguration of international supply chains, and the declining commitment to international law. An increased focus on sustainability and climate change, rising inequality within and across nations, and the dominance of big tech are rapidly shifting the global balance of power.
A McKinsey (2022) report indicated that geopolitical instability poses a threat to both domestic and global growth. An Edelman (2022) Trust Barometer Report indicated that 59 per cent of executives believe that responding to geopolitical issues is a top priority in business.
For multinational corporations, the impact a single event or policy shift can exert on their operations is magnified through a complex web of interrelated dependencies. The physical locations of premises, multi-faceted supply chains, geographically mobile workforces and cyber-connectivity have led to greater risk exposure emanating from the cross-border transfer of goods and currency exchange.
As the geopolitical landscape changes, so must the way in which risk leaders protect their businesses. A thorough understanding of the interlinked geopolitical risk drivers and their impacts provides
