Geopolitical Risk Mitigation. How can businesses and governments develop a deep understanding of connected risk in order to mitigate successfully?
Geopolitical risks are complicated to evaluate. They are interconnected and often highly volatile, prompting shifts between global power centers and impacting businesses. This is why businesses and governments need to understand the deep connections between risks and find innovative ways to mitigate them.
To show how easily risks can quickly cascade, creating a complex and volatile geopolitical situation, the Zurich Risk Room analyzed the network of factors that contributed to the Arab Spring of 2011. Their work formed the basis of a model that businesses can use to help understand their exposure economic disparity. The key is for businesses to understand that in a world connected by the internet and globalization, a company can be affected by geopolitical risks crystalizing halfway across the world.