Supply Chain Resilience Amid Geopolitical Tensions
Published on Thursday, April 11, 2024
Geopolitical instability continues to disrupt global supply chains, with trade disputes between major economies intensifying. The conflict between the U.S. and China over technology exports escalates, while regional tensions in Eastern Europe and the South China Sea create additional uncertainty.
Manufacturers face raw material shortages, particularly in the semiconductor and rare-earth sectors. Companies begin diversifying supply chains, shifting operations to emerging markets like Southeast Asia and Latin America. Nearshoring strategies gain traction as businesses seek to reduce dependency on single regions.
Logistics firms invest in digital tools, such as predictive analytics, to identify vulnerabilities and optimize supply chain operations. Governments collaborate with corporations to enhance trade policies and mitigate risks. This situation underscores the need for agility and foresight in global operations, as companies navigate the complex interplay of geopolitics and commerce.
Depending on its business sector and the nature of its activities, your organization may be impacted, directly or indirectly, by this global risk over the coming years.
Whether you are a director, an executive or a manager, you may be wondering if your company is exposed to this global risk or other potential events. And if so, are you and your organization ready to face these challenges?
Should you need advice on the appropriate risk governance and enterprise risk management approach for your organization, please contact us.
Baldwin Global is an independent advisory group offering professional services, education and training in risk governance and enterprise risk management. We help our clients’ boards of directors and management teams attain their objectives by embedding sound risk oversight and management practices into their decision-making process to have a significant positive impact on their business.