The top global corporate risk is geopolitical risk, which presents growing management challenges, especially at the board level, on an international scale.
The geopolitical landscape is characterized by increased volatility in previously stable regions and the resulting uncertainties following political changes. These factors serve as key drivers of both familiar and emerging risks. Rising inequality and the potential for conflict, the politics surrounding climate change and its consequences, and a diminishing commitment to the international rule of law contribute to the challenges at hand. In our interconnected and globalized world, the impact of a single event or policy shift on an organization can be amplified due to a complex network of interconnected risks and themes. Factors such as the physical locations of facilities, intricate supply chains, mobile workforces across different regions, and cyber connectivity have heightened the exposure to risks stemming from cross-border movement of goods and currency exchange, as well as the movement of employees and customers, and the increased technical integration of businesses.