WTW has announced the launch of a new research programme, coordinated by the WTW Research Network, focusing on the most significant drivers of geopolitical risk and what global businesses can do to proactively manage these threats.
As governments around the world continue to deal with the ramifications of COVID-19, a rapidly escalating geopolitical storm of political, economic and social disruptors is challenging established international systems and leading to increasing turbulence across the full risk landscape.
Jo Holliday, Global Head of Crisis Management, said: “The geopolitical landscape is increasingly complex, nuanced and systemic. With the Western world’s attention on Ukraine and Russia, electoral tensions in Sri Lanka, Brazil and the Democratic Republic of Congo continue to highlight the growing security and political stability risks spreading across other regions. Geopolitical risk is of increasing concern to our clients and in-depth research initiatives such as this enables them to understand the risks associated across crisis management and geopolitical tensions.
Hélène Galy, Head of the WTW Research Network, said “Internal polarisation is being exacerbated by sharply rising costs of living, and risks weakening the decision-making abilities of many western countries and corporates, emboldening alternative visions on national governance. By working with world-class industry specialists through our partnership with the American Enterprise Institute (AEI) based in Washington and the New-York-based Center on U.S.-China Relations at Asia Society we can help our clients understand the impact of geopolitical actions
The objective of the research programme will be to focus on some of the most important issues in the geopolitical space. The project will explore the changing relationship between the U.S. and China, as well as impacts on the international supply chain, trade blocs and international institutions.
Orville Schell, the Arthur Ross Director of the Center on U.S.-China Relations at Asia Society said: “On the whole, given that ‘engagement’ as a policy is no longer the operating system of relations between China and the liberal democratic world, there is an urgent need to factor questions of political risk into all considerations, whether as diplomats, academics, members of the media or businessmen.
“Building resilience into supply chains, diversifying the sourcing of high-technology products, ensuring the stability and continuity of food and water systems, and stabilising state-to-state relations is of fundamental importance to the current international system, especially in the growing Asia-Pacific region. It is my pleasure to partner with WTW and its Research Network to gain a better understanding of the growing risks to international businesses and what those risks entail in the 21st century.”
The research programme will also look at how grey-zone aggression and cyber threats are increasingly being used to achieve geostrategic objectives, with ramifications for the application of international law and insurance contracts.
Elisabeth Braw, Senior Fellow at the American Enterprise Institute, said: “I look forward to collaborating with WTW as part of its outstanding work analysing the intersection between globalised business and geopolitical confrontation. No industry is more attuned to risk than the insurance sector, which has also been a leading force in trying to assess the risks stemming from today’s increasing geopolitical confrontation. Because companies are highly exposed to these risks, understanding them is vital not just for insurers but for Western economies more widely.”
In addition, the work will examine the political implications of climate change, including climate-led migration and demographic changes, as well as resource scarcity and climate fragility as drivers for inter-regional cooperation or conflict.
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