By Dani Matthews, Co-Founder & Chief Growth Officer, Abundium
In collaboration with Control Risks
Control Risks outlined five global risks shaping the future at their recent Risk Map 2025 briefing, offering critical insights into the challenges and opportunities facing multinationals. These risks, ranging from geopolitical tensions to digital vulnerabilities, highlight the increasingly complex environment that business leaders must navigate. For local leaders of foreign-owned companies, understanding these dynamics is vital to turning challenges into opportunities and maintaining resilience in a rapidly shifting global landscape.
1. Uncertain states of America
- With the recent U.S. election, the global impact of America's domestic and foreign policy is uncertain.
- Trends like isolationism, deregulation, and fragmented state policies will accelerate, creating a more complex business environment.
2. Global trade war
- Trade tensions, particularly between the U.S. and China, are at the centre of global commerce challenges.
- Australia's role as a safe haven for foreign investment positions it uniquely amidst these tensions.
3. Red line geopolitics
- Escalating geopolitical competition, particularly in relation to Taiwan, the South China Sea, and North Korea, underscores the need for robust scenario planning.
4. Rising political violence
- Threats from lone actors, online radicalisation, and emerging technologies like 3D-printed weapons and AI-driven disinformation are creating new challenges.
5. Digital concentration risk
- The growing reliance on cloud and AI systems increases vulnerability to large-scale cyber outages and attacks, including those targeting AI infrastructure.
opportunities for multinationals
Despite the challenges, the landscape is ripe with opportunities for those prepared to act.
- Australia as a safe haven: Australia’s stable environment, supported by government encouragement to expand into Asia, positions it as a key destination for foreign investment. For companies navigating U.S. volatility or China trade dependencies, Australia offers a reliable alternative.
- Climate and energy transitions: China’s leadership in renewable energy investment presents opportunities, but also risks if they dominate supply chains.
- Digital transformation and AI: While AI and IT security present risks, they also open doors for innovation and competitive advantage. Leaders investing in secure, scalable technology will be well-prepared for the future.
resilience: the key to thriving amidst risk
Control Risks emphasised resilience as the cornerstone of navigating the risk landscape. Their message was clear: risk creates opportunity, but only for businesses prepared to seize it.
practical steps to build resilience
- Risk management basics: Prioritise what's critical in your tech stack and ensure robust back-ups and security.
- Scenario planning: Develop scenarios and monitor triggers for issues such as supply chain disruptions, trade conflicts, and cyber outages.
- Supply chain redundancy: Monitor world events closely and build flexibility into your operations.
- Whole-of-business conversations: Foster collaboration across teams to identify vulnerabilities and plan proactively.
resources:
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