As part of its annual forecast of the political risks likely to play out in 2023, Eurasia Group released its annual report titled The Top Risks of 2023 in January. It seems that there is always a new crisis around the corner, and as a result, businesses all over the world are vulnerable to these crises.
Our 2022 CEO Outlook found that geopolitical uncertainty will likely continue to impact the strategies of companies, with 81 percent of CEOs anticipating that they will need to adjust their risk management procedures as a result. As Eurasia Group warns this year "we remain in the depths of a geopolitical recession, with the risks this year being the most dangerous we have encountered in the last 25 years."
Our Dynamic Risk Assessment (DRA) of the Top 10 Risks for businesses goes beyond the traditional severity and likelihood metrics, focusing instead on velocity, which is the speed at which a risk's impact will be felt, and contagion, or how likely it is that a risk will trigger other risks should it occur. With the help of DRA, we are able to visualize Eurasia Group's Top Risks in a way that helps us represent them as a network, with each risk node being affected by and influenced by other risk nodes in the larger network.
Eurasia Group’s forecast reminds us that geopolitical risks are usually interconnected and contagious, so they should not be considered separately. Access the report and take the first step towards safeguarding your business.