How can companies effectively manage geopolitical risk and integrate it into their business strategies? In this episode of Riskology, Dr. Andrea Bonime-Blanc joins the discussion to explore the importance of understanding the international geopolitical risk landscape. From the role of the board and management in risk governance to the need for practical translation of theoretical discussions, Dr. Bonime-Blanc provides valuable insights on navigating the turbulent and changing geopolitical landscape. Tune in to gain a deeper understanding of how geopolitical risk can impact your business and how to turn risk into opportunity.
Infortal Worldwide is a global risk management and investigation firm that specializes in helping businesses navigate complex risk landscapes. The company’s focus extends to various areas, including economics, politics, and geopolitical risk. By delving into these interconnected realms, Infortal Worldwide aims to provide clients with comprehensive insights that empower them to make informed decisions, especially in critical areas such as mergers and acquisitions, private equity investments, and other strategic moves.
You’ll hear Chris, Ian, and Andrea discuss:
- Geopolitical tectonic shifts: The world is experiencing significant changes in geopolitical dynamics, such as the rivalry between China and the US, Russia’s invasion of Ukraine, and the focus on the Middle East.
- Impact of generative AI: The development of generative AI technology poses risks, particularly in the hands of criminals, terrorists, and rogue nations who can use it asymmetrically to cause harm.
- Integration of geopolitical risk into business strategy: Companies need to move beyond theoretical discussions and actively integrate geopolitical risk into their risk management frameworks and business strategies.
- Cultural differences in approaching geopolitical risk: European-based multinationals tend to be more sensitized to geopolitical risks due to stricter regulations, while US-based multinationals often have a laissez-faire attitude and prioritize market-friendly approaches.
- National security and corporate compliance: The Department of Justice recognizes that companies play a role in national security and is increasing its focus on enforcing corporate compliance through the National Security Division.
- Role of general counsel in managing geopolitical risk: In smaller businesses without a general counsel, the CEO, CFO, or COO should take responsibility for understanding and addressing geopolitical risks, seeking external expertise when needed.
- Link between geopolitical risk and opportunity: Understanding geopolitical risks allows companies to identify opportunities for value creation, better supply chains, and selecting partners and customers in different markets.
- Evolving compliance programs: Compliance programs need to adapt to address the complex geopolitical risks of today, with dynamic assessments that consider changing global conditions rather than static annual analyses.
KEY QUOTES:
“There’s a little bit of that hubris and a little bit of that ultra-market-friendly attitude that has succeeded. And we don’t have privacy laws federally in this country, and there’s a reason for that: the business lobby and other interests have made sure that we don’t go there.” – Andrea Bonime-Blanc
“The danger of national security issues, IP theft, and intelligence gathering has always been there because we’re an open market economy and anyone and their brother can come here, and if they happen to be a spy or a plant from another government, we don’t find out, maybe ever.” – Andrea Bonime-Blanc
“Good risk management translates into good opportunity management and opportunity value creation.” – Andrea Bonime-Blanc
Resources:
Dr. Ian Oxnevad on LinkedIn
Chris Mason on LinkedIn
Dr Andrea Bonime-Blanc on LinkedIn
