How can you manage geopolitical risks more effectively? Six risk management best-practice ideas

Geopolitical risk is a key risk we’re seeing managed by multinational, large organizations in suboptimal ways. With a different approach, we believe its impact can be reduced.

We’ve seen many organizations struggle to both identify and adequately manage risks driven by geopolitical factors, leaving businesses unduly exposed to the consequences of supply chain, business disruptions and uncertainty, and volatility in global trading conditions.

Our 8th annual political risk survey found for nearly three-quarters (74%) of globalized company respondents, political risks are among the top five risks facing businesses today. For 11% of respondents, it was the number one risk. This figure is likely to rise in the next survey.

So, to help your organization better manage the many geopolitical risks that could threaten performance and resilience, in this insight, we offer risk managers six best-practice approaches to managing geopolitical risk, including:

1. Take the lead on geopolitical risk management
2. Consistent and centralized geopolitical risk management
3. Move to proactive geopolitical risk management
4. Establish clear escalation protocols for geopolitical risks
5. Develop a geopolitically risk-aware culture throughout the organization
6. Incorporate external geopolitical risk analysis for M&A and investment decisions

Can we help you manage and enhance your geopolitical risks more effectively and efficiently? Get in touch with our enterprise risk management geopolitical specialists to find out.