The global economy is constantly buffeted by events that have a far-reaching effect beyond regular market changes. These “critical events” can have a long-lasting impact on industries and societies, which is why they are so critical to understand and prepare for.
The repercussions of such global events are complex and can often take time to fully play out. But they leave lasting marks on our world, changing the way that we work, live and invest. This is why it’s important to embrace strategies that can help you respond to them.
Political upheavals, such as civil unrest or coups, can have profound impacts across different countries and regions. They can cause economic turmoil and even humanitarian crises. They also have the potential to destabilise the geopolitical map and create significant disruptions for businesses operating in those markets.
Environmental crises, such as oil spills and large-scale deforestation, can have catastrophic effects on wildlife, ecosystems and human health. These are often exacerbated by climate change, as the warming environment caused by our emissions of heat-trapping greenhouse gases affects global weather patterns and accelerates the melting of glaciers and ice sheets.
The globalisation of the world has made it possible for more places to be affected by pandemics, such as the Plague (Justinian’s Plague and 1346-53’s Black Death), influenza and more recently COVID-19. But the statement that globalisation and global events ‘impact all places’ is an oversimplification, as different areas are affected to varying degrees.