Events unfolding in Ukraine illustrate an increasingly dynamic and ‘competitive’ global geopolitical environment. Company boards and management teams often pay insufficient attention to geopolitical issues and their second- and third-order effects, at best only drawing on occasional board-level briefing with limited further analysis and action. Current tensions globally show that boards need to give greater focus to the increasingly uncertain impacts that impact undermining macroeconomic and investment conditions. Derek Leatherdale and Hanif Barma highlight some key areas that boards should focus on.
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Gas debacle – a failure of prudential risk management?
Just as UK regulators consider new financial resilience rules, further corporate failures, this time in the critical energy sector, offer some early lessons in how patchy governance, and insufficient focus on geopolitical risk with its complex links to ESG, can undermine financial viability. Geopolitics, and the ways in which it can make ESG decisions more complicated, will bear on different firms in different ways. Derek Leatherdale explains that regardless of firm or industry sector, applying key organisational principles can help boards and risk functions approach what is undoubtedly a complex area.
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Geopolitical risk - do you know what should be keeping you up at night?
In today’s Risk Coalition blog, Derek Leatherdale explains that in a world with political instability in every continent and global volatility entrenched in the international landscape, it is more important than ever for financial institutions to adapt their approaches to risk management when it comes to geopolitical risk.
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