Welcome to the world of geopolitical investigations
Whether you’re looking to expand into new markets or you maintain a global supply chain, what’s happening beyond your borders will have a significant impact on your business.
Taking your business global gives you the chance to exploit new opportunities and super-charge your growth, but one wrong decision could affect your reputation, your bottom line and may even lead to legal problems.
So how do you balance risk and opportunity? You need to arm yourself with as much information as possible. Identifying and analyzing threats is an important part of managing geopolitical risk.
It starts with a country risk analysis. When you enter a new market, you need to know the lay of the land. For example, an in-depth analysis could tell you that Argentina’s economy has been contracting for six years. Ongoing corruption trials and a polarized political situation also indicate socioeconomic instability.
Or perhaps you’re looking to work in China. Culturally, you need to understand that the practice of guanxi is all about building connections through gift-giving and carrying out favours. However, this can be considered bribery. When you put that in the context of President Xi Jinping’s much-publicised crackdown on corruption, you need to tread very carefully.
A geopolitical investigation can also look at physical security. You need investigators who speak the language and understand the cultural landscape to tell you more about the risk of conflict, war or even terrorism. Perhaps there is ethnic political tension in your chosen country, or criminal gangs operate with impunity. You need all the information to keep your personnel safe.
Environmental, social and governance (ESG) risks are also something you need to consider. The recent severe flooding in Brazil and the increasingly frequent wildfires in Greece could affect your global supply chain.
And have you checked if your potential business partners are upholding environmental standards and that there are no shortfalls in terms of governance and compliance?
If you’re doing business in high-risk regions, such as Sub-Saharan Africa, you need to know how corruption, ethnic violence and human rights violations could affect you. Perhaps you operate in Taiwan, where there is the potential threat of conflict, or the UAE, which could be affected by the war between Hamas and Israel.
In today’s globalised world, setting up operations in a different country offers fantastic opportunities to cut costs, grow into new markets and expand your operations. But it comes with risks. And the best way to manage risk is through preparation. Geopolitical investigations can help you do just that.
At The Owl, we analyze countries and regions on your behalf, investigate potential partners and can even check potential new hires to keep your reputation intact and your business operating optimally.
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