Commercial Risk, June 15, 2021
The growing importance of political and sustainability risks will require companies to collect more diverse data on suppliers and supply chains, according to Jim Wetekamp, chief executive officer of risk management software provider Riskonnect.
Covid-19 is adding volatility to already heightened political risk, with implications for company supply chains, Mr Wetekamp told Commercial Risk Europe. In particular, rising nationalism, trade disputes, civil unrest and conflicts threaten cross-border supply chains the world over, affecting the supply and demand of commodities and components, as well as product quality and cyber risks, he said.
“Companies are increasingly experiencing the tangible effects of political risks at a time of growing politicisation for business. Businesses must track who they sell to and who they buy from, as the associated risks can bleed through to operational, strategic, financial and reputational risks. Geopolitical risks touch all aspects of ERM,” he said.
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