Geopolitics,

Business
Disruptions and
Duty of Care
Sushil Pradhan
COO
MitKat Advisory Service
25th April 2022
Agenda

Geopolitics and Business Continuity

Complicated Geopolitical Environment in Asia-Pacific

Duty of Care
Geopolitics and Business
• Geopolitics is the study of the effects of Earth's geography (human and physical) on
politics and international relations

• Business is at the heart of the current geopolitical transformation.

• Key emerging countries are building political capital with their neighbours and around
the world through strategic investments and increasingly dense commercial
partnerships.

• In many contexts, there may be little differentiation between private-sector and

national interests given the close relationship between political and economic entities.
Why it Matters

EX-IM TAXATION
INVESTMENTS POLICIES POLICY

EASE OF DOING BUSINESS SUPPLY

BUSINESS CONTINUITY CHAIN AND
LOGISTICS
Geopolitics Risks for Businesses
• Geopolitical risk has a clear meaning for business: It is the potential for international and domestic
politics to threaten the financial and operational stability of companies.
• To develop a framework to mitigate this risk, companies must:
o Understand the specific nature of the relationship between corporate globalization and
geopolitics
o Map the “sites of risk” for corporations in their activities – people, process, technology, assets,
reputation
o Map the risks
o Adopt forecasting tools to enhance their enterprise resilience
o Work out risk mitigation strategies in line with their business models that are cost-effective,
bespoke, implementable
• In a geopolitically Volatile, Uncertain, Complex and Ambiguous (VUCA) world, the business
environment that global companies operate in is defined by constant disruption, and business
leaders need to be confident with making strategic choices in the midst of uncertainty.
Geopolitics in 2022

1 Multi-polarity, Zero-G world, spheres of influence

2 Regional groupings and shifting alliances – Quad, RCEP, BRI, SCO

3 Supply Chains – Off shoring, re-shoring, near shoring

Technology – digital tools, communications, telecommunications, internet, splinternet, privacy concerns,

4
data localization, hardware (chips)

5 Vaccine diplomacy and vaccine nationalism

6 Energy security – sanctions, new alliances, renewables, new finds

Geopolitics in 2022

7 Competition for resources – REEs, lithium, undersea mining, fishery, RMs like coltan, gold, etc

8 Internal shocks – civil disturbance, political upheavals, policy uncertainty, tax regimes, nationalization of
assets, protectionism, populism, over-regulation of assets, protection of contract, Ease of Doing Business

Terrorism, copycat terrorism, terror funding, digital currency, social media (radicalization, recruitment,
9
planning)
ASIA-PACIFIC REGION OVERVIEW

A PRONE TO NATURAL DISASTERS

B TERRORISM AND INSURGENCY

C REGULAR DISEASE OUTBREAKS, ESPECIALLY DURING MONSOONS

D INCREASING RISKS OF POLITICAL UNCERTAINITIES AND BILATERAL

ISSUES

E SECURITY RISKS AND MARKET DISRUPTIONS DUE TO

EMERGING TECHNOLOGIES
GEOPOLITICAL SECURITY CONCERNS IN ASIA PACIFIC

1 Border Conflicts and Bi-lateral issues

2 Water Conflicts

3 Trade imbalances

4 Refugees

5 Terrorism, extremism and radicalisation

GEOPOLITICAL SECURITY 6 Proxy war

CONCERNS IN ASIA PACIFIC
7 External influences
China’s Belt and Road Initiative and its Impacts in South Asia
Countries vulnerable to Debt-trap diplomacy
Suspension of Russia from SWIFT
Shortage of Semiconductor chips
Lithium Supply Crunch
Global Energy Crisis 2021-2022
Global Container Crisis
Ban on Chinese Applications in India
Suez Canal Blockage
Food Shortages due to Russia Ukraine Conflict
Increase in Steel Prices
Disruption of Global Supply Chains due to Antagonism with China
GEOPOLITICS AND ASSOCIATED BUSINESS RISKS

Emerging and Unstable Markets and

A
Market Volatility

Distribution of Personnel at potentially

B
unstable locations

C Supply Chain Disruptions

D Capital Hazard and Information Vulnerability

Unpredictable Event, Unpredictable Outcome

COVID-19 outbreak Russia- Ukraine Conflict

Eastern Australia Floods 2022 Delhi Jahangirpuri violence

Unpredictable Event, Unpredictable Outcome
Predictable Events, Predictable Outcomes

Maharashtra State Road Transport Delhi – NCR dust storms

Corporation (MSRTC) strike

Militant Attacks in Kashmir Assam floods

Predictable Events, Unpredictable Outcomes

Issues complicated by Potential high risk,

unexpected violence unexpectedly peaceful outcome
What makes situations worse?

Sensitive environment Poor infrastructure Bureaucracy Response time

Lack of Coordination Rumours & mob mentality Connectivity & Accessibility

Duty Of
Care
Understanding Duty of Care
DUTY OF CARE – Safety and security of employees ‘beyond the call of duty’

• Duty of Care is becoming increasingly important for those involved with

• Travel Risk Management

• Business Continuity Management

• Operational Risk Management

• International travel

• Health and security of workforce

• Employee’s families

• Insurance claims
Why does it matter?

Enhances feeling of loyalty Employee’s satisfaction Impact on business

and faith and morale continuity

Costs of care for an Compliance and

Insurance liability
emergency legislation
Some cases
• Case 1: Your expat visitor in India is living in an upmarket hotel – decides to go for an evening walk to ‘see
the slums’ - gets physically molested by a crowd

• Case 2: Your Indian employee travelling abroad for work combines it with leave for a few days - does not
tell you where she is going on leave - gets mugged and loses all cash/cards - gives you a panic call. She
also has to attend an important series of meetings in India tomorrow

• Case 3: Your local employee goes to a pub on Friday evening, gets into a fist-fight, arrested and jailed,
gives you a call

• Case 4: Expat employee residing in India with family – calls in panic - her child is not on the school bus
and is not answering calls
Some cases
• Case 5: Your expats employee’s spouse is travelling to Assam on vacation - caught in floods, stranded in a
remote place, unable to reach the airport

• Case 6: Your Indian employee travelling to Europe leaves behind the company laptop in a hotel by
mistake - her team’s project depends on retrieval of that laptop

• Case 7: Your Indian employees trekking in Uttarakhand gets caught up in a landslide related roadblock
and gives you a panic call

• Case 8: Your expat employee in India insists on driving a company car (he has the requisite licence) and
gets into a road accident where the car is damaged and he is slightly injured.
Diversity spectrum of employees

Race and
Ethnicity
Sexual
Disability
Orientation

EMPLOYEEE
Gender Religion
DIVERSITY

Pregnancy / Gender
Maternity Reassignment

Hierarchy
Challenges – employees/travelers

Medical Outbreaks –
Ebola, Swine Flu,
No place is safe - Airline Terrorist
MERS, Zika Fever,
developed or not Catastrophes/Hijacking Attacks/Explosions
Nipah, Avian Flu, SARS,
COVID-19

Air Quality, Food Language and Cultural Petty crime,

Natural Disasters –
poisoning, Drinking Barriers, attack against lawlessness and
Floods, Earthquakes
water specific religions imprisonment
Emerging concerns

Point to point
Bleisure Traveller in trouble
monitoring

Family members Self driving? Drugs

Preventing identity
LGBT community Loss of company
theft
Challenges in India

Inadequate emergency response Air Evacuation

Overlap of responsibility Inadequate First Aid

Transport/accommodation restrictions Reluctance for vaccinations

Absence of primary care facilities

Basic hygiene amenities and accommodation

Emergency evacuation

Safety concerns for women

How to implement duty of care?

1 Provide a safe working environment (including hotels, airlines, rental cars etc.)

2 Providing information and instruction on potential hazards and threats

3 Monitoring the health and safety of employees

4 Employing qualified persons to provide health and safety advice

5 Monitoring conditions at all locations under your control and management

6 Maintaining appropriate employee records to allow for proper implementation

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