CAPTURING STRUCTURAL DEVELOPMENTS WITH RISK AND OPPORTUNITY AMPLIFIERS
The global risk landscape continues to be complex and volatile. Significant external factors such as geostrategic tensions, climate change, rapid technological advancements and evolving societal expectations are shaping the risk environment in unprecedented ways. Current global geopolitical conditions have disrupted global supply chains and increased operational uncertainties significantly. Furthermore, the results from the recent US presidential election have added a level of unpredictability with potential policy shifts, which could significantly impact existing regulatory frameworks. Climate change continues to pose significant challenges, with extreme weather events and rising temperatures affecting ecosystems and human health.
The World Health Organisation’s advocacy for climate-resilient health systems illustrates the urgency of addressing these risks. Rapid acceleration of technology, particularly generative artificial intelligence, introduces a new set of risks such as discrimination, deepfakes and misinformation. This necessitates a strong governance framework across the globe to manage potential biases and ensure ethical use. Evolving societal expectations demand greater accountability and transparency from companies in the areas of human rights, environmental, social and governance (ESG) and corporate ethics. A prominent example is the recent adoption by the European Commission of the Corporate Sustainability Due Diligence Directive, which requires companies to identify and assess adverse events across their value chains while integrating sustainability and human rights into their corporate governance. In this highly complex landscape, robust risk management is crucial for navigating uncertainties and ensuring preparedness against various risk scenarios. By proactively addressing potential threats, organisations can build resilience and ensure sustainable operations in the face of evolving challenges.
Jan-Mar 2025 Issue
Novartis International AG