Businesses face six interconnected risks this 2024 – J.S. Held

Businesses should be on the lookout for the effects of geopolitical shifts, economic challenges, and natural disasters.

Amidst significant geopolitical changes, economic challenges, and advancements in technology and regulation a report by consulting firm J.S. Held's elves into six key interconnected issues affecting business strategy and decision-making.

Mainly, populism and the 2024 election cycle, the Chinese economy and foreign investment, AI uncertainty, climate change and natural disasters, the expansion of ESG laws, and political risks from government intervention will be influential on businesses this year, according to the 2024 J.S. Held Global Risk Report.

Increasing global political and economic trends pose a growing risk of government interference for investors. Strained relations between major states or blocs, such as Russia/China versus the West, translate into more hostile actions against investors. 

Governments prioritise economic and national security over previously valued principles like free trade, resulting in trends like "decoupling" and "de-risking," where countries impose mutual investment and trade restrictions without completely severing ties.

National security concerns drive these actions, with fears of espionage, strategic sector infiltration, or direct threats to allies. Instances like Western sanctions on Russia and Moscow's countermeasures highlight the trend of governments reducing dependence on rivals for strategic resources.

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Protectionism under the guise of national security is evident in mutual tariffs by the EU and the US, aiming to hinder a rival's economic and technological progress. 

Government intervention risks extend beyond fractious bilateral relations, encompassing cases where positive relations exist but other factors, such as environmental activism, lead to licence revocation for mining projects. 

States also seek greater benefits from foreign investments, often using populist language like "resource nationalism" or industry nationalisation.

Over 30 experts in various fields contributed to the report, offering a comprehensive view of these risks and their interplay. 

Greg Esslinger, Executive Vice President, highlights the report's focus on topics crucial to CEOs and other top executives. The report not only explores the interconnectedness of these issues but also identifies business opportunities arising from this complex landscape.

The J.S. Held team, consisting of over 1500 experts globally, brings diverse perspectives from their experience in corporate boards, C-suite roles, government, and scientific fields to more than 8,000 clients annually.