Lessons from Brexit - implications for governance and risk
The UK vote to leave the European Union has created uncertainty and potential volatility around the world. As the implications of the vote continue to unfold, New Zealand businesses are being urged to consider the near and long-term effects on the risk environment, strategic direction, and potential workforce dislocation.
In many respects, this vote reflects a mix of more fundamental trends that are emerging globally and already impacting the regions and markets in which our companies operate.
Rob Frost, Head of Business Risk for Marsh in New Zealand explains that it is not only this vote that should prompt boards and management to reconsider the issues that are going to impact their businesses and future success. In an article written for the Oct/Nov issue of Boardrooom magazine for the Institute of Directors, he argues that in many respects, this vote reflects a mix of more fundamental trends that are emerging globally and already impacting the regions and markets in which New Zealand companies operate.
Populism is evident in many countries and is driven by both economic and social factors. The US Presidential election race is also clearly demonstrating how some of these global issues are gaining significant traction across large parts of an electorate that traditionally have not been prominent or vocal.
These underlying global issues can have a significant impact on corporate New Zealand should be on company strategic risk radars and taken into account during strategic planning.