Reed Smith Client Alerts

Key takeaways

  • Geopolitical Nature: geopolitical risk is about power projection, not financial gain.
  • Business Impact: geopolitics affects all business functions and must be integrated into the business ecosystem.
  • Volatility Management: businesses need flexibility to handle geopolitical volatility, especially with upcoming global elections.
  • Current Hot Spots: key issues include the Russia-Ukraine conflict and European countries' proactive measures.
  • Broader Trends: increasing global volatility is driven by climate change, migration, and declining trust.
  • Strategic Focus: businesses should focus on understanding risk drivers, disruptors, and buffers for better risk management.

We were delighted to host an illuminating keynote session with Tina Fordham, a renowned Geopolitical Strategist from Fordham Global Insight. Her presentation, "Navigating the Geopolitical Landscape and Horizon Scanning” at our offices recently sparked a wealth of insightful discussions among our clients. This session, facilitated by our partner, Tamara Box, Head of Structured Finance, provided profound insights into the complexities of the current geopolitical environment.

Geopolitical Volatility and Business Strategy

Understanding geopolitical risk:

Tina Fordham highlighted that geopolitical risk involves countries extending their influence beyond their borders. In politics, unlike in business, power typically precedes wealth. This fundamental difference often leads to a misunderstanding of geopolitical risks, largely due to a failure of imagination. Understanding that geopolitics is about power projection rather than financial gain is crucial for understanding global dynamics.