With the world in flux, now is a good time to put geopolitics at the centre of your global mobility business strategy
October 2023 | By Dr. Merriden Varrall, Head of the Australia Geopolitics Hub, KPMG Australia, and Scott Shaughnessy, Washington National Tax, KPMG LLP (US)
In today's world, economic and geopolitical volatility has become the "new normal." From COVID-19 to trade and investment sanctions, growing food insecurity, and climate change, the impact on businesses has been significant. For multinational organizations with mobile workforces, the need to approach risk management around their assignment programs and traveling employees with broader, more innovative thinking has become critical.
Traditionally, the global mobility function has focused on assignee-candidate identification, assessment, compensation packages, and relocation. However, to foster the success of the employee's assignment and be a more constructive partner to the business, global mobility needs to thoughtfully contextualize its planning and decision-making when it comes to the company's overseas business strategy and the sending of employees abroad for work. This entails a consideration of the geopolitical context.
In 2022, the Australian Securities and Investments Commission (ASIC) indicated that its area of focus for June 30, 2022 reporting would be geopolitics. ASIC called out geopolitical risk as a key area of uncertainty that directors and management should assess in the future performance of a company, the value of assets and provisions, and in business strategies. For businesses to survive and thrive, just as ASIC notes, geopolitics needs to be central in strategic planning and operational design.
Many companies are facing changing market conditions and uncertainties. It can be hard to cut through the noise to know what those market uncertainties are and where they might be heading. This article aims to identify key geopolitical challenges, explain them, and evaluate their impact, in general terms, from a global mobility standpoint.
As the world continues to change rapidly, it is essential to stay informed and prepared for the challenges that lie ahead. By taking a proactive approach to risk management and incorporating geopolitical considerations into strategic planning, businesses can navigate the new normal and thrive in an ever-changing global landscape.
With the world in flux, now is a good time put geopolitics at the center of your global mobility strategyDownload PDF
Mobility Matters, published by KPMG's Global Mobility Services (GMS) practice, offers thought-provoking articles that can help raise awareness about topical and timely issues affecting international assignment programs and globally-mobile employeesRead more