Control Risks, the global business risk consultancy, today publishes its annual RiskMap report, the key reference point for policy makers and business leaders needing to plot global trends over the coming year.
Now in its 30th year, RiskMap highlights the most significant underlying trends in global risk and security, and provides a detailed view from the markets that will matter most in 2013.
Introducing RiskMap, Richard Fenning, CEO, Control Risks said: “RiskMap this year describes a world in which certainties are in shorter supply, and leadership more difficult to exercise. Managing companies or countries has become as much about reacting swiftly and decisively to changing circumstances as it has to do with the implementation of a strategy or policy.”
Companies are being caught between regulation from above and unprecedented scrutiny from below. Political leaders are feeling the global gaze as never before.
· Significant challenges facing world leaders in a climate where economic uncertainty and political unrest have made holding power more problematic. Dealing with the fiscal cliff and re-invigorating Chinese economic growth will test Barack Obama and Xi Jinping to their limits.
· Globalisation’s taut interconnectivity demands that leaders constantly adapt to survive. In an era where management of crisis and the unexpected is the norm, leaders are required to operate in a zone of continual uncertainty. More than ever they need to be in touch, sure of their facts and supremely agile. Strategy will often take second place to subtlety.
· The corporate world faces particular challenges. The low or zero growth in the OECD is continuing to drive companies to new frontiers where the distinction between risk and opportunity is harder to define. There is potential to become risk obsessed - trapped between the twin imperatives of risk taking and risk reduction. As the report describes, often this can lead to inconsistency and paralysis.
This year RiskMap illustrates that political risk in developed markets is at its highest level for decades. The report also looks at how the early promise of the Arab Spring will give way to impatience and continued turbulence across the Middle East. It sees US foreign policy interests remaining necessarily global, whatever the temptations to contract from the Middle East or refocus on Asia-Pacific.