In an era marked by increased geopolitical upheaval and a shift toward nationalism, global companies, governments and NGOs are at risk in ways that were previously irrelevant to the industrialized world. The once-predictable landscape, formerly guided by the principles of globalization and open markets, has given way to a new normal – one in which continual volatility and chaos are the new norms. In this complex environment, situational intelligence is the beacon that guides organizations from chaos to clarity.
Consider the conclusions of a 2021 EY survey of more than 1,000 executives:
- 94% reported having been impacted by unexpected political risks over the last 12 months.
- 97% expected political risk to affect their company’s growth, investments, and operations in the year to come.
- 77% anticipated imminent revenue impact.
- 58% of respondents deemed improving their organization’s political risk assessment strategies a priority.
Yet only 23% of those surveyed reported proactively integrating political risk management into broader risk management on a regular basis.
Why is such a small percentage taking charge of their political risk management when it seems overwhelmingly clear that almost all of them expect this to impact their business? More importantly, what steps can leaders who want to do more in terms of political risk take to protect their business?
Leading in Fluid Environments: Strategic Optimization through Situational Intelligence
In an environment characterized by constant disruption and fluidity, security leaders must position themselves as strategic advisors. To maximize their impact, they should consider the following four tips to optimize Enterprise Risk Management (ERM) frameworks backed by situational intelligence:
1. Consider all business goals and stakeholders.
Revisit your risk management plan and ensure that all business goals and stakeholders are included. Map the ways in which disruptions might impact current business initiatives, operations, and stakeholders. Your review should include a wide array of potential impacts and risk exposure, including but not limited to:
- Investment strategies
- Operational adjustments
- Supply chain modifications
- Personnel management
- Regulatory and compliance requirements
- Corporate reputation management
It should also consider responsibilities toward various stakeholders such as employees, investors, partners, and the communities they serve. Create communication strategies and actions to safeguard the physical and fiscal well-being of those who might be affected by your company’s risks and responses.
2. Increase flexibility and agility.
Your ERM framework offers critical insights and direction to managers, teams, and your board. It must be dynamic and responsive to remain valuable as an organizational resiliency tool. Increase adaptability through regular and systematic evaluations, without any bias toward existing structures. Routinely assess the need for changes that enhance agility. Consider the potential fallout of many factors, including geopolitical shifts and technological advancements. Identify and monitor key elements to curb future risks.
3. Embed cross-functionality and verticality.
Turn your department into a knowledge hub. Here’s how:
- Gather data and distribute relevant situational intelligence that informs decision-making in every department and leadership, customized to your audience.
- Seek real-time insights from external and internal sources to enhance your understanding of potential disruptions.
- Cultivate a culture of openness between the security department and senior management.
- Actively seek a seat at the strategic planning table.
- Advocate for a security-centric corporate culture.
- Establish clear responsibilities and paths of communication across the organization.
- Transition security from a secondary consideration to a central element.
4. Audit, review, and evaluate.
Keep increasing the agility of your security plans. Review data and analysis often. Ensure effectiveness and flexibility by pausing periodically to take stock and ask questions like these:
- Is my framework up to date?
- Does it reflect the latest shifts within my organization, across my industry, and around the world?
- Have I adequately incorporated the latest situational intelligence and technology?
- When faced with a threat, did my organization respond proactively, swiftly, and effectively?
- Were short-term interests well-balanced with long-term objectives?
After your team responds to a crisis, conduct after-action reviews to update monitoring systems and existing frameworks. Implement a variety of systems to test strategies, identify vulnerabilities, and improve the effectiveness of organizational systems to maintain business continuity.
Find Success with Situational Intelligence
As the volatility of the global business environment continues to grow, situational intelligence has emerged as a necessity. It equips businesses with the ability to navigate through chaos and uncertainty and transforms potential threats into opportunities for growth. By providing insights into key areas of concern and promoting resilience across multiple dimensions, monitoring and analyzing real-time information empowers your organization to make decisions from a proactive stance, rather than a reactive one. The result is a company that is both better prepared for today’s challenges and fully equipped to seize tomorrow’s opportunities.
Experience the transformative power of Seerist. Our solution provides real-time, actionable insights that can help your business navigate the complexities of the global business environment. We invite you to request a demo of our solution and discover how Seerist can guide your company from chaos to clarity.
