A world connected and fragmenting
“Geopolitical risk is at the top…the global order today is experiencing cross-cutting forces. On the one hand, according to McKinsey Global Institute research…, the ties that bind are strong…At the same time, we are experiencing significant geopolitical fragmentation, or as German Chancellor Olaf Scholz has put it: “The world is facing a Zeitenwende: an epochal tectonic shift. New powers have emerged or reemerged. In this new multipolar world, different countries and models of government are competing for power and influence… (Even though) today’s world is more connected economically than ever before, yet it is experiencing significant geopolitical fragmentation. In this context, geopolitical risks are among the top three issues…” More here >
How to build geopolitical resilience amid a fragmenting global order
“…Strategically invest in capabilities, people, processes, structures, and technology to navigate the risks arising from an evolving and fraught geopolitical landscape…the orthodoxy of globalization is under strain…The world seems to be tethered to crisis, or the threat of it…Looking ahead, the challenges are likely to only become more acute. According to the US National Intelligence Council’s Global trends 2040 report, in the next two decades, competition for global influence is likely to reach its highest level since the Cold War: “No single state is likely to dominate all regions or domains, and a broader range of actors will compete to advance their ideologies, goals, and interests.”…”Amid these challenges, the value of resilience is on the rise…To address the geopolitical risks of the present—and future—leaders should challenge their organizations on six key dimensions of resilience: business model, reputation, organization, operations, technology, and finance (exhibit).” More here…
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