Teneo News: Teneo Expands Restructuring Capabilities

Interstate conflict was ranked as the risk with the highest likelihood of occurring, according to the World Economic Forum.

Identifying Risk and Opportunity

In the 21st century business environment, leaders of global firms and institutions must make strategic decisions under increasing pressures. Political decisions are moving markets in profound ways, and the balance of economic and demographic power is shifting to rapidly transforming markets which each have their own unique and evolving complexities.

Teneo examines how political decision-making and events are drivers of market outcomes and determinants of business and operating environments. We advise business leaders and decision-makers on how to manage or benefit from these pressures. Our experts analyze and forecast domestic and international political developments and their implications in order to anticipate events before they become action-forcing. In this way, political analysis can provide a look around the corner to alert investors and corporations to upcoming risks, and opportunities.

Today more than ever, political drivers are determining economic outcomes around the world. While focusing on politics and its power to disrupt financial markets used to be the reserve of emerging market investors, this is no longer the case. Politics is now an important driver in all markets, including in developed economies.

While financial institutions are adept at analyzing and assessing economic fundamentals, credit risk, and counterparty risk, Teneo Intelligence’s global advisory service complements these assessments with political analysis and forecasting. In order to help investors better understand the new challenges posed by political risk, Teneo Intelligence delivers forward-looking, timely and relevant information by monitoring and analyzing political, economic and social events around the globe.

Multi-national corporations rely on highly-complex and integrated global operations, with political risk posing significant challenges for corporate strategy and a company’s reputation. Political risk assessment and management is essential at all phases of business operations, be it a comparative market assessment to identify new opportunities and potential risks, or a deep dive country assessment as part of a due diligence process, as well as ongoing monitoring of risks that may have material implications on a firm’s operations, assets, or personnel across the globe.

Teneo’s political and policy risk experts provide deep country expertise and in-country networks to support corporations at every step of the way. In addition to near- to medium-term monitoring and horizon scanning, our long-term analysis identifies emerging trends, allowing corporations to position themselves to benefit from global social and economic shifts before they materialize, and positions multinational CEOs as thought leaders and global ambassadors of their industries.

Having a grasp of stakeholder sentiment on a particular policy, event or topic important to a company enables organizations to evaluate the likelihood of, and prepare for, any possible political or economic issues that may otherwise have the potential to derail an important company initiative or business objective.
Through our monitoring and assessment, Teneo can help companies gain an external perspective on what is going on in the markets and geographies that matter most to their businesses, as well as the priorities of key stakeholders, influencers and decision-makers. Our team’s political power mapping services identifies key stakeholders and their influence and policy trajectory in order to assist with government and non-government stakeholder outreach strategy, while our scenario analysis serves to deliver forecasts for more informed strategic planning and more accurate vulnerability assessment.

Robust risk management is essential at both the board and executive level, as well as at the operational level, and identifying and preparing for high-impact scenarios are critical to good governance, investor confidence, and a company’s long-term resilience and growth.

Our team identifies potential and plausible scenarios that matter to company strategy, defining the multitude of factors and consequential ramifications which may have implications on a corporation from a strategic, operational, and reputational perspective. We identify signposts which may indicate the emergence of such scenarios and work with clients to build and test a strategy and action plan to ensure contingencies are in place, ranging from shareholder communication to government engagement and media outreach, to mitigate damage or benefit from opportunities.

Teneo Insights

James Shinn

Chairman, Teneo Intelligence

Higher Volatility and CEO Decision Making

Higher volatility is likely in four important asset markets. The end of quantitative expansion will drive a return to higher volatility in all these indices.

The global business world is nervously edging into a state of higher volatility and it is going to get even edgier over the next twelve months. With bets on higher market volatility, many are left wondering: what is driving this enhanced volatility, what executive decisions is it complicating and how can...

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