When understanding geopolitics became an inevitable part of the decision-making process
Companies have increasingly started to hire people with titles that were previously a rarity. The demand for geopolitical advisors has arisen as a logical consequence of recent events in world politics that have shaken up the business landscape, value chains and the profitability of investment. The pandemic years, Russia's war of aggression, the situation in the Middle East and China's escalating power struggles are just a few examples of international political events that can change the business environment and shake up value chains in radical ways.
In a global world, companies no longer operate within the laws of a single country, but are inevitably part of a complex international network. The global scene is full of different regulatory regimes, cultures and political dynamics, all of which contribute to creating threats and opportunities for business. The world is in constant flux, and geopolitical tensions can sometimes simmer beneath the seemingly calm surface of international relations. Trade wars, economic sanctions and the rise of nationalism are just the tip of the iceberg. They reflect a broader picture of geopolitical changes that have the potential to shake up the business world.
Recent developments on the world political stage have highlighted the need for expert geopolitical advice for business. Tighter geopolitical conditions and aggressive trade policies have affected supply chains, market access and investor and consumer confidence. In addition to hot conflicts, tighter regulation, economic sanctions and diplomatic gamesmanship have left many companies around the world vulnerable. In addition to market dynamics, international companies need to understand and be able to assess the various political currents and their impact on business and stakeholder sentiment. Misjudgements can be costly.
This is where geopolitical advisors step in to help companies navigate the complex maze of geopolitics. Geopolitical aspects are assessed both in the context of corporate strategy formulation and in the context of various investment projects. Geopolitical advisors are therefore increasingly playing a key role as part of companies' decision-making processes. Through the lens provided by geopolitical experts, companies can identify the strong and weak geopolitical signals that are relevant to their decision-making. This enables companies to make informed decisions, mitigate risks and seize global opportunities.
Ideally, a geopolitical advisor is an analytical and experienced international policy expert with experience in scenario work, identifying and assessing weak signals, risks and threats. A broad network and experience in different continents will be an asset. A sufficiently strong understanding of international business and market dynamics is also required.
In addition to direct recruitment, geopolitical expertise can also be provided as a service. The advantage of this service is that, in addition to a single expert, the company has access to a whole team with international networks and specific geographical knowledge.
Understanding the geopolitical landscape is almost essential in today's business environment to maintain a competitive advantage and ensure business continuity - at least if the company operates in multiple markets or has global value chains. Where hiring geopolitical advisors used to be a luxury, today it is almost a necessity if a company wants to make the right choices and succeed in global markets.
Laura Hildén
The author is an international policy expert and manager at Blic.