Geopolitical outlook and risk strategies for the long term
He discusses the increase in global conflicts, the erosion of international law, and the rapid spread of information due to 24/7 new cycles and social media. Lord Darroch predicts that these challenges will persist or worsen in the next five years, stressing the importance for businesses to constantly reassess their vulnerabilities and adapt their strategies proactively.
The escalating nature of geopolitical risks
As Lord Darroch points out, the world has become increasingly volatile, arguably more so than at any time in our lifetimes. He highlights that there are currently more conflicts worldwide than since the end of World War II, with the international rules-based system seemingly deteriorating. He cites Russia’s invasion of Ukraine as a notable example of the breaches of international law that are growing more frequent.
He notes the rise of 24/7 news cycles, amplified by social media, which enables the spreading of information – and misinformation –instantaneously. Among the myriad challenges, the unpredictability of political leaders, adds further complexity for risk officers in companies.
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