As you build a transformation roadmap to sustainable and resilient operations, there is a complication that supply chain reinvention and technology can’t easily solve.
The world economic order for free trade is evolving from a unipolar model, one that created stability and growth, and that global business and operating models relied on, to a multipolar order. Volatility and economic nationalism are superseding globalization. The EY Geostrategic Business Group identified the rise of neo-statism as one of the top 10 political risks of 2021.
As the next generation of nation-state superpowers competes for economic, military and cultural supremacy, shifting alliances are creating geopolitical flashpoints, supply chain chokepoints and cybersecurity risks that threaten operational resilience.
Moreover, government competition is pushing regulatory bodies further apart at a time when organizations need regulators to pull together to provide a global response to the threats that compromise globalization, corporate resilience and sustainability.
This challenge is thrown into sharp relief as it relates to cybersecurity. In the fight to address technology vulnerabilities, global organizations face the increasing challenge of techno nationalism. As one example, individual countries are adopting country-specific cybersecurity and data protection standards, which could make cyber threat monitoring and cybersecurity response either overly complex or effectively impossible.
This isn’t just a problem for the cybersecurity function to solve. In an open, globally connected, always-on operating environment, COOs playing a leading role in guiding their business toward a future of more sustainable and purpose-driven growth must help navigate these neo-statist and techno nationalistic risks. Beyond collaborating within their boardrooms and even their industries, it requires rallying regulators around the world, bringing them together to develop standards that simplify and streamline global trade and cybersecurity regulations for organizations, and that ultimately benefit all nations rather than giving advantage to one nation over another.