why is a geopolitical analysis crucial for business?

The geopolitical analysis complements business strategies and legal control mechanisms


SUMMARY

• The global security mode is stably unstable

• Geography, religion, culture, history and power structures constitute fundamental

analysis information

• Models for risk management are adapted

• Risk is transformed into opportunity

• Knowledge leads to a broadly sustainable, more stable business


The global security situation is stable unstable

Globalization has had many positive effects on world trade. But increased mobility also means being exposed to a greater risk. After the 2008 financial crisis, a stable world order has not yet been established. Old faithful partners are replaced for temporary collaborations. Promoters of democratic values ​​retreat and look after their own house. Dictatorships put their mark on all continents. Protectionism is growing. In addition, the challenges posed by demography, migration, environmental and climate change. Changes occur very quickly. The complexity makes it difficult to grasp.


The market is saturated

A large part of the western market is saturated. Companies are turning to new markets with great economic potential, but also with a high degree of corruption, political uncertainty and a volatile security situation.


Awareness without action

There is a higher degree of awareness among CEOs about how uncertainty has increased and that it can adversely affect the business climate. This is not reflected in the risk strategies accordingly. Likely due to the fact that it is a full-time job to be up-to-date on the development and so far, only the largest companies have linked this competence to themselves, internally or via a strategic partner.


What kind of analysis?

Some of the most important parameters to take into account in an external and risk analysis are:

• What does the geographical situation mean? Neighbors? Commodity Flow? Potential conflicts? Conflict of interest? Minorities? .

• To what extent does religion, culture and history weigh in?

• What are the national challenges, needs and expectations of the country?

• What does the underlying power structures look like?


Why is a geopolitical analysis important?

Awareness of geopolitical and/or local conditions means that measures can be taken for risk minimization, eg. in the form of which contacts are established, how the contracts are designed or in which way an information flow is constructed. In this way, so-called spoilers are addressed, clauses handle the real challenges and transparency counteracts that unfavorable conditions can last for longer periods of time.


How can risk be turned into opportunity?

Knowledge of the above conditions, the right contacts and the information channels lead to a broadly sustainable, more stable business, with prospects for added value.


Wiktoria D Wittboldt,

International lawyer, with 25 years of experince working for the UN, EU, ICJ and Swedish MFA, guide you through politics and turn risk into opportunity.

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