WG-REQ-1670 FIS Horizons 2025 STAGE 1 AH - copy - Flipbook - Page 6
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Hogan Lovells
Riding the wave
of geopolitical
and economic
turbulence
Geopolitical risk has become a number one concern for firms
and their clients.
Building geopolitical resilience is now essential, not simply to be able
comply with divergent regulatory expectations but businesses need to be
able to anticipate and adapt to the twists and turns that lie ahead. Will tariffs
be imposed and, if so, on which industry sectors in which countries? How
do we expect others to react to tariffs? Which aspects of your global business
operations are more fragile in the face of disruption to global supply chains,
cyber threat, trade policies or inflation?
We use our dedicated teams across major markets to advise firms on how to
ride the wave of geopolitical turmoil.
Geopolitical turbulence is impacting global supply chains, the cost of energy,
investment decisions, digitalization, bank capital requirements, M&A and a
lack of international regulatory consensus, leading to heightened regulatory
divergence.
Cyber risks have grown exponentially since the war in Ukraine and the onset
of generative AI and quantum computing. These threats are being closely
monitored across governments and banking regulators who are deeply
concerned about risks to financial stability. We expect to see increased focus
on testing the operational resilience of financial institutions to withstand
cyber attacks and enforcement or remediation action where firms are not
meeting requisite standards.
