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As global politics get more complicated, geopolitical risks thrive

Joe Mont | June 12, 2018

Companies, their management, and the boards that oversee them are no strangers to emerging risks. In recent years, they have had to navigate such threats as supply chain disruption, foreign corruption, and all manner of technology-fueled threats and cyber-disruptions.

All of that may have been good training for some of the biggest challenges they have yet to confront.

Geopolitical risk is certainty nothing new. It is a broad definition, applied globally, to such threats and disruptions as taxes, tariffs, trade battles, financial and supplier uncertainty, commodity supplies, corruption, political swings, and declarations of war.

What is changing, these days, is the nature and severity of these risks and a cloud of uncertainty that surrounds them. There is an ever-swaying pendulum between regulation and deregulation; a global shift to populism and nativism; developing trade wars; international unrest; ever-shifting sanctions; and increasingly tense relationships...

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