WTW, a leading global advisory, broking, and solutions firm, has announced the launch of a new research program, coordinated by the WTW Research Network, focusing on the most significant drivers of geopolitical risk and what global businesses can do to manage these threats proactively.
As governments around the world grapple with the consequences of COVID-19, a rapidly escalating geopolitical storm of political, economic, and social disruptors is challenging established international systems and causing increased turbulence across the entire risk landscape.
“The geopolitical landscape is increasingly complex, nuanced, and systemic,” said Jo Holliday, Global Head of Crisis Management. While the Western world is focused on Ukraine and Russia, electoral tensions in Sri Lanka, Brazil, and the Democratic Republic of the Congo highlight the growing security and political stability risks in other regions. Our clients are increasingly concerned about geopolitical risk, and in-depth research initiatives like this one help them understand the risks associated with crisis management and geopolitical tensions.
“Internal polarisation is being exacerbated by sharply rising living costs, and risks weakening the decision-making abilities of many western countries and corporations, emboldening alternative visions on national governance,” said Hélène Galy, Head of the WTW Research Network. We can help our clients understand the impact of geopolitical actions by collaborating with world-class industry specialists through our partnership with the American Enterprise Institute (AEI) in Washington and the Asia Society’s Center on US-China Relations in New York.
The research program’s goal will be to focus on some of the most pressing issues in geopolitical space. The project will investigate the changing relationship between the United States and China, as well as the implications for the global supply chain, trade blocs, and international institutions.
“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,” said Orville Schell, the Arthur Ross Director of the Center on US-China Relations at Asia Society.
Building resilience into supply chains, diversifying high-technology product sourcing, ensuring the stability and continuity of food and water systems, and stabilizing state-to-state relations are all critical components of the current international system, particularly in the expanding Asia-Pacific region. It is my pleasure to collaborate with WTW and its Research Network to gain a better understanding of the growing risks to international businesses and the implications of those risks in the twenty-first century.”
The research program will also investigate how grey-zone aggression and cyber threats are increasingly being used to achieve geostrategic goals, with implications for international law and insurance contracts.
“I look forward to collaborating with WTW as part of its outstanding work analyzing the intersection between globalised business and geopolitical confrontation,” said Elisabeth Braw, Senior Fellow at the American Enterprise Institute. No industry is more sensitive to risk than the insurance industry, which has also been a driving force in attempting to assess the risks posed by today’s growing geopolitical confrontation. Because businesses are highly exposed to these risks, understanding them is critical not only for insurers but also for Western economies in general.”
Furthermore, the research will look at the political implications of climate change, such as climate-driven migration and demographic changes, as well as resource scarcity and climate fragility as drivers of inter-regional cooperation or conflict.
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