Geopolitical and macro risk management
In recent decades, companies and investors have pursued successful internationalization strategies in a favorable geopolitical setting, promoting the integration of the global economy. However, rivaling geostrategic interests and competing political systems have turned this environment significantly more volatile and fragile in recent years. Geopolitical rivalry and tensions between the USA, Europe, China (the U.S. – Europe – China Nexus), Russia and within other geographies reshape the international economic order and its markets as we know them. We expect this dynamic to continue gain momentum. The tension resulting from global economic integration on the one hand and geopolitical competition on the other will determine the strategic environment of internationally operating companies for the foreseeable future.
This situation requires companies and other market participants to reassert themselves, to reassess their geopolitical and economic risk exposure, to expand their risk management capacity and adjust their strategic orientation if necessary. We believe that a new appreciation of geopolitical risk is indispensable for building a sustainable growth strategy in the global economy of the 21st century.