Riskology by Infortal: Episode 36 - Geopolitical Risk Management for CFOs
CFOs: are you rethinking global risk?
Geopolitics is seeping into the boardroom and impacting the bottom line, now more than ever.
Join Riskology by Infortal™ hosts Dr. Ian Oxnevad and Christopher Mason from Infortal Worldwide as we highlight the strategic importance of factoring-in Geopolitical Risk analysis to CFO-led strategic planning and financial forecasting.
📌 Geopolitical risks encompass a wide range of factors, from inflation and economic policies to socio-political dynamics, all of which can disrupt market stability.
📌Having a contingency plan in place can save your financial outlook.
📌As global markets become more interconnected and unpredictable, CFOs need to factor in geopolitical variables significantly impacting operational continuity. Just think about the recent impact that economic warfare, i.e. sanctions, has had on the shipping industry.
📌Geopolitical instability can have far-reaching impacts. The key to thriving amidst these uncertainties lies in strategic preparedness and robust scenario planning; envisioning multiple future states and their potential impacts on the business in the event of a significant geopolitical shift.
📌Risk management systems can categorize risks, assign scores, and generate predictive analytics, giving CFOs actionable insights. This continuous monitoring is crucial, as it allows for timely adjustments to financial plans, ensuring that resources are allocated efficiently, and emergency funds are available when crisis strikes.
📌 It's Important to have a boots-on-the-ground understanding of the risk landscape.
📌A clear distinction between risks and threats is essential for effective financial planning.
📌The better you understand the risk profile of a scenario the more prepared you will be to head off emerging threats.
📌You need to monitor and manage the right risks according to your firm’s risk tolerance level before they escalate into threats. Once a threat emerges, such as geopolitical instability, a company may face significant cost increases.
📌Contingency planning is a critical component of effective risk management outlining specific steps and resources necessary to address various risk scenarios, from economic sanctions to political upheaval.
📌Undertaking contingency planning requires a deep analysis of potential risks and their financial implications to develop comprehensive strategies.
📌Specific actions might include setting aside financial reserves, diversifying investments, or establishing alternative operational sites. By establishing these plans ahead of time, organizations can react more swiftly and effectively, preserving financial stability.
📌Establishing robust risk management frameworks with risk intelligence & compliance updates ensure that companies are not caught off-guard by emerging threats.
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.
