AIRMIC Conference Highlights

This week (w/c 3 June), the AIRMIC Conference delivered invaluable insights into the future of risk management. The standout moment was Clive Myrie’s compelling speech and his expert chairing of a debate on geopolitical risk.

From the discussions, a key takeaway was that 2024/25 will see an unprecedented number of people voting globally. This surge in electoral activity brings significant risks related to political instability and the potential for diverse and unpredictable leadership ideologies.

Specifically, in the UK and the USA, political polarisation poses substantial business risks, even for organisations not directly trading within these countries. The interaction of these nations’ leaders with the global stage in the coming years will critically shape the risk landscape for business leaders. Key questions include America’s stance on the Russia/Ukraine conflict post-November elections and the extent of the new UK government’s involvement in global conflicts, potentially diverting focus from domestic needs.

Should the UK see a Labour government, Tim Shipman of The Sunday Times predicts an initial period of uncertainty, given the lack of government experience among new Labour MPs. This transition period poses a risk to businesses as new legislation takes time to formulate and the initial “honeymoon period” evaporates.

In light of these insights, risk managers must brace for the uncertainties the geopolitical landscape presents. Claudia Fry of Control Risks emphasised the importance of “engaging the unthinkable” and “reconsidering old assumptions.” At JPIC, we believe that with risk comes opportunity. Businesses willing to take calculated risks and seek opportunities amidst uncertainty will be best positioned to thrive.

Author: Neil Timberlake, Director