The concept of globalisation has been a game-changer for the modern world. However, the challenges that it faces are enormous. The threats to globalisation can stem from various factors such as differing culture, geopolitics, international relations, and fear.
It is crucial to understand that successful business pragmatism needs to match the local dynamics in which individuals are operating. The Covid-19 pandemic has acted as a catalyst for these challenges. The differing government policies and the fear of the pandemic have halted transportation and supply chains throughout the world. This has recalibrated the world order and inter-country dynamics.
Taking a proactive approach to risk management
In such a scenario, risk management becomes the key to understanding how each micro sector can deal with the evolution of society and their part to play in it. The fear of the unknown and the uncertainties that come with it, can lead to significant risks in the supply chain. A single disruption in the supply chain can have a cascading effect on the entire system. Geopolitical differences can worsen the situation, making it more challenging to manage risks. Therefore, it is essential to take a proactive approach to risk management.
In conclusion, the threats to globalisation are real, and they stem from various factors. The Covid-19 pandemic has brought these threats to the forefront. Risk management is the key to managing these threats successfully. By understanding the local dynamics and taking proactive measures, individuals can mitigate the risks and ensure that the supply chain remains intact. It is vital to lead by example and make the necessary adjustments to ensure that globalisation continues to thrive in the long run.
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*Thomson Reuters and Contributors. (2022). Threats to Globalisation. The Company Lawyer, (1), 18-21.