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Geopolitical risk - Business resilience

Recent global geopolitical events such as the COVID-19 pandemic, increasingly extreme weather events, heightened terrorist activity and international tensions all underline the importance of an organisation’s ability to react, recover and adapt to changing circumstances. The idea of business resilience is gaining in momentum as organisations realise that threats are now just as likely to come from other continents as well as locally, and that protecting their people, assets, customers and financial viability is critical if they are to survive.

 Image showing interaction between geopolitical risk factors and business resilience factors
Geopolitical risk and business resilience

Building business resilience against geopolitical uncertainty

The number and range of risks facing organisations is forever evolving and our job is to help our clients identify, understand, protect against and respond to these risks, and in turn capitalise on any opportunities. Key resilience questions for organisations to consider include:

  • How confident are you in your crisis management and business continuity arrangements?
  • How well do you understand your supply chain and could you easily adapt your arrangements in the event of supply chain failure?
  • How would you rate your ‘cashflow resilience’?
  • Could your business withstand another geopolitical event, such as a pandemic?

Tools to manage geopolitical risk and build resilience

  • Analytical models to assess your financial exposure to scenarios at macro and micro scale
  • Physical and transition risks
  • Blast and terrorism modelling and analytics
  • Willis Towers Watson Geopolitical Risk Dashboard
  • Parametric solutions e.g. reputation protection
  • Business continuity and crisis management planning
  • Strategic and operational risk management
  • Trade disruption insurance
  • Non damage business interruption insurance
  • Broader resilience consulting
  • Business resilience – recovery strategy and on site support
  • Crisis and communciations management
  • Claims management

Geopolitical risk management

Willis Towers Watson helps organisations navigate the impact of geopolitical events and understand these risks and their interrelationships. We help to quantify and model the impact of geopolitical risk, and to design risk mitigation strategies that may or may not include traditional insurance measures. We do this by taking a multidisciplinary approach, working across traditional organisation silos, using evidence-based analytics, to quantify the risks and develop roadmaps for change.

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