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:
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