War in Ukraine – Business and Risk Management Implications
The coordinated attack by Russia on Ukraine has created a historic risk environment for operations in these countries, and for organizations around the world. Companies with interests in Russia, Ukraine and nearby eastern European countries, as well as multinational organizations, should be aware that the current situation is fluid and evolving. There could be potential for negative impacts to businesses due to:
- Political violence/nationalization
- Trade interruption, including supply chain disruption/destruction
- Increased cyberattacks
- The ability to enter or leave the region safely
- Possible expropriation of Western assets in Russia
There will also be an increase in energy and commodity prices in Europe and possibly globally, depending on conflict escalation. Organizations within the conflict region and across the globe can expect an increase in terrorism, supply chain disruptions, and cyberattacks, and should take necessary steps to protect their operations.