Global instability

Regulatory change, fiscal pressures, social and political unrest are creating instability with the potential to disrupt commercial models and organisational structures across the financial services sector.

In the race to adapt, financial services businesses are often responding in reactive and ultimately unsustainable ways. But some forward-looking organisations are using the shake-up to redefine their strategies and take advantage of a once-in-a-generation opening up of the marketplace.

Regulatory change

Regulatory change will be a way of life for the foreseeable future. It’s vital to look beyond compliance to understand how these developments will affect your costs, product design and organisational structure.

Regulation expenditure and employees in the UK and Hong Kong

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Fiscal pressures

Fiscal pressures are further undermining global financial stability by forcing some economies to the brink of default, threatening the solvency of weakened banks and making capital markets more volatile.

Social and political unrest

The world has become increasingly unstable in recent years. Your business will need to consider how heightened social and political instability could affect your risk profile, in particular investments and operations in countries and commercial sectors that are potentially vulnerable to protest and unrest.

Global current account balances

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Eurozone current account balances

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A more unstable world - Political instability index

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So what does this mean for your business?

Your ability to anticipate the impact of this instability on your business and nimbly adapt to the uncertainty and upheaval ahead will be crucial to survival and success.

It’s important to play an active part in the debate over regulatory and tax reform to make sure the changes are economically sound and effective. This includes engaging with businesses, consumer groups and other key stakeholders to make sure the full impact is understood and help get important messages across to policymakers.

Your business can gain significant market share if it adapts to the reforms and changing commercial realities faster than your competitors.

Operations will need to become more agile to accommodate changing conditions. Risk and finance teams also need to become more proactive in managing a rapidly changing and often uncertain risk and regulatory environment.

 

Continue the conversation

Nigel Vooght If you have any questions, please contact:

Nigel Vooght

Global Leader Financial Services

Tel: +44 (0) 20 7213 3960

 

Andrew R Jurczynski

Global Leader Project Blue

Tel: +31 (0)88 792 6690