The events of 2022 have spurred a spike in geopolitical risks and a dramatic drop in businesses’ resilience to those risks, according to new research from specialist insurer Beazley. The impact of inflation is also causing deep concerns about domestic stability, alongside worries that global tensions are increasing threats from external sources. As businesses adjust to the current situation, preparedness and mitigation strategies are becoming a key focus.
Beazley’s new report, Spotlight on Geopolitical Risks, found that across the UK and US, few business leaders feel able to manage current geopolitical risks. Concerns about the possible consequences of war are rising compared to last year, and inflation is a dominant concern.
Among the report’s findings are:
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“Against a challenging backdrop, business strategies are now at a point of inflection,” said Roddy Barnett, head of political risks and trade credit at Beazley. “Even those territories far removed from the theater of war in Eastern Europe are feeling the impact of global sanctions and commodity shortages on risks across the board, from supply chain to cyber to political risk and trade credit. Businesses need to know that as we face a moment of geopolitical change, which is fraught with unpredictability, they can protect overseas physical assets and their human capital both at home and abroad by actively investing in a mixture of risk management and effective insurance cover.”