How geopolitical shifts are impacting board strategy

5 minute read 20 Apr 2021
Authors
Brandon Perlberg

Associate Director, Regulatory and Public Policy, Ernst & Young LLP

Regulatory and public policy professional. Focused on investor stewardship, audit reform, corporate culture, diversity and inclusion, environmental, social and governance matters, and long-term value.

Ilaria Lavalle Miller

Associate Director, Regulatory and Public Policy, Ernst & Young LLP

Corporate governance and transparency professional. 20 years’ experience working on policy strategy and regulatory affairs across UK and EU institutions. Passionate about equality and diversity.

Contributors
5 minute read 20 Apr 2021

EY’s Ilaria Lavalle Miller and Brandon Perlberg discuss geopolitical shifts and what boards need to consider as part of their board strategy.

As part of the UK Centre for Board Matters video series on emerging regulatory developments for corporate boards and non-executive directors (NEDs), EY’s UK Regulatory & Public Policy Associate Directors, Ilaria Lavelle Miller and Brandon Perlberg, provide insights for boards and organisations on the topic of geopolitical shifts, focusing on areas considered essential, including:

  1. What are the geopolitical shifts boards should be thinking about?
  2. The impact of geopolitical shifts on boards when shaping their geostrategy.

The 2021 Geostrategic Outlook presents analysis on the global political risk environment in 2021, with COVID-19 as the top risk, which is shaping many political risks around the world. Other major risks include US-China relations, the European Union’s accelerated push for strategic autonomy, reinvigorated climate policy agendas, the politics of emerging market debt and social unrest.

Key insights discussed also include the introduction of COVID-19 vaccines, and the high levels of uncertainty around the policy environment that companies face, which is challenging both strategy development and execution. Therefore, it has never been more important for boards to monitor political risks for potential opportunities and challenges.

Brandon Perlberg discusses the importance of geopolitical shifts, including the economic toll and political risk: “In 2020 in the UK we saw the economy shrink by more than 9%, and it's not expected to recover to pre-pandemic levels until 2024. Globally other economies have contracted by an even greater extent, and that’s before taking into account new strains of the virus that will obviously continue to disrupt the economy ”. “We’ve had a few years now of hyper-volatile politics. So it’s never been more important for companies to have a geostrategy that incorporates political risk into their broader strategic thinking.”

In conclusion, considering geopolitical shifts as a broad strategy is pivotal in guiding business leaders, owners and the board to create long-term, sustainable value to survive.

About UK Centre for Board Matters:

The EY UK Centre for Board Matters, a programme for non-executive directors and all board-level executives, delivers timely insights on the current issues facing UK businesses. Our programme combines on-demand content to keep board leaders abreast of emerging themes, with networking events to build strong peer relationships. 

If you would like more information, or to join the EY UK Centre for Board Matters, please contact us at neds@uk.ey.com  or visit www.ey.com/uk/boardmatters.

Summary

Considering geopolitical shifts as a broad strategy is pivotal in guiding business leaders, owners and the board to create long-term, sustainable value to survive.

About this article

Authors
Brandon Perlberg

Associate Director, Regulatory and Public Policy, Ernst & Young LLP

Regulatory and public policy professional. Focused on investor stewardship, audit reform, corporate culture, diversity and inclusion, environmental, social and governance matters, and long-term value.

Ilaria Lavalle Miller

Associate Director, Regulatory and Public Policy, Ernst & Young LLP

Corporate governance and transparency professional. 20 years’ experience working on policy strategy and regulatory affairs across UK and EU institutions. Passionate about equality and diversity.

Contributors