Applying materiality assessments to the management of geopolitical risks

Abstract

Geopolitical developments are increasingly influencing global business. While many companies have not yet fully integrated the handling of such risks into their corporate structures and processes, others have responded to the increased expectations of various external stakeholders with regard to environmental, social, and governance issues. As a result, they have developed advanced capabilities to systematically analyze their external environment in an effort to mitigate sustainability risks at an early stage. This article proposes utilizing what are now well-established sustainability materiality assessments to facilitate the management of geopolitical risks.