The growing importance of Geopolitical Risk in 2024 have increasingly taken center stage in boardroom discussions. Companies are recognizing the complex interplay between global events and their business operations.
💡 Board of Directors members have shown a growing interest in geopolitical risk, understanding that global events can have substantial knock-on effects on business operations. By establishing dedicated teams and intelligence networks, firms are now better positioned to factor in geopolitics not just in strategic decision-making but also in their everyday operations.
💡 Companies must be vigilant and adaptable, as geopolitical events have direct implications for global supply chains, market stability, and overall business continuity.
💡 Establishing robust risk management frameworks that include geopolitical considerations is not just beneficial but necessary for navigating the current global risk landscape.
💡 The importance of Risk Intelligence and Due Diligence in an increasingly complicated global risk environment requires understanding your risk exposure and spotting emerging risks before they become threats to your business.
💡 This requires tapping into the right intelligence to unpack hidden risks. This also means conducting due diligence investigations that include global risk intelligence for significant investment or operational decisions.
💡 The election cycle in 2024 was one of the most dramatic and consequential in recent memory. Over half the world went to the polls, with significant political shifts.
💡 There's been a notable surge in populism in the West, a phenomenon driven by the perception that mainstream institutions and political bodies have fallen out of touch with the average citizen.
💡 Post-election change is on the horizon as new regulations, tariffs, and sanctions come into play.
💡 Geopolitical tensions and global conflicts have necessitated reevaluating supply chain strategies: Nearshoring: moving production closer to home markets offers numerous benefits driven by: - Cost Reductions: Savings on shipping and logistics. - Supply Chain Resilience: Mitigating risks associated with international disruptions. - Speed to Market: Faster delivery times and reduced lead times for new product launches.
💡 Reshoring, bringing manufacturing back to the company’s original country, is also gaining traction. This is particularly relevant in industries facing stringent regulatory requirements or where operational control is critical. With governments incentivizing domestic production through subsidies and tax breaks, the economic landscape is visibly shifting.
💡 As we prepare for the economic and regulatory realities of 2025, businesses must prioritize adaptability and foresight.
Infortal’s Continuing Legal Education (CLE) courses are designed to equip executives, attorneys and risk managers with strategic insights to navigate the complex landscape of geopolitical risk. We cover topics such as international sanctions, regulatory risks, corporate espionage, AML, global warfare, anti-terrorist financing and corruption.
We can help you make informed decisions and mitigate potential risks for your business.
