Latest news with #geopoliticalrisk
Yahoo
05-08-2025
- Business
- Yahoo
AI-Ready Supply Chains Prove More Resilient Amid Rising Global Risk
AI adoption drives resilience, as 98% of mature users feel ready for geopolitical disruption, compared to 0% with no AI plans REDWOOD CITY, Calif., Aug. 5, 2025 /PRNewswire/ -- Ivalua, a global leader in spend management, today released the results of a U.S.-focused study revealing that U.S. supply chain leaders are facing mounting geopolitical disruption, yet the most resilient organizations are not retreating from innovation, but adapting their strategies to strengthen it. According to the survey of 100 supply & procurement decision makers, organizations are grappling with mounting pressures: 91% expect disruptions from new trade policies, and 85% say international instability is impacting decision-making. Yet, those that have embraced artificial intelligence (AI) are not just surviving, but leading. Preparedness appears to go hand in hand with innovation, according to respondents: 98% with fully deployed AI tools say they feel prepared for geopolitical risk, and nearly half describe themselves as very prepared. Preparedness drops sharply to 21% among those still implementing AI. Only 11% of those merely considering AI implementation feel very prepared to deal with disruption. And 0% for companies with no AI plans say they are prepared to deal with disruption. "The desire for AI adoption across organizations is strong, but geopolitical instability and rising costs are pressuring organizations to shift priorities," said Alex Saric, CMO of Ivalua. "There's a real risk that near-term disruption becomes a long-term excuse to pause innovation. However, risk is a constant in global supply chains, and the real differentiator is how leaders respond. The most resilient organizations adapt their strategies without abandoning them, acting decisively to innovate and strategically to become stronger and more competitive." Despite widespread AI implementation, as 77% of respondents say they are currently rolling out AI tools in procurement or supplier management, only 36% view AI as a top supply chain priority today. While many are currently focused on cost control and risk mitigation, these efforts don't have to come at the expense of innovation. In fact, the two should go hand in hand: 73% of U.S. company leaders agree they must invest more in technology to help identify and mitigate geopolitical risks. Yet, 65% of U.S. businesses say that trade policy uncertainty is causing them to pause or decrease investment. 59% still cite innovation as a priority, indicating that leaders aren't abandoning transformation, but many are adjusting timelines under pressure. The shift reflects a defensive posture in response to near-term threats, but the data suggest that innovation is translating into tangible business benefits for the most advanced organizations. Companies with mature AI strategies handle geopolitical risks and cost pressures better than those without. While 78% of unprepared companies expect profit hits from rising costs, this decreases to only 50% for well-prepared companies that share this concern. A notable gap also exists between C-suite and frontline managers, as 67% of owners and 56% of C-level executives say their organizations are "very prepared," only 17% of senior managers and 10% of junior managers agree — highlighting the need for clearer execution and communication across teams. Ivalua's findings suggest that innovation can be a powerful risk response. Rather than putting transformation on pause, resilient organizations are leveraging it to close preparedness gaps, strengthen operations and build competitive advantage during uncertain times. About the ResearchSapio Research conducted the survey on behalf of Ivalua in April 2025. The survey was based on responses from 100 Supply & Procurement decision makers in the United States. About Ivalua Ivalua is a leading provider of cloud-based, AI-powered Spend Management software. Our unified Source-to-Pay platform empowers businesses to effectively manage all categories of spend and all suppliers, increasing profitability, improving sustainability, lowering risk and boosting employee productivity. We are trusted by hundreds of the world's most admired brands and recognized as a leader by Gartner and other analysts. Learn more at Follow us on LinkedIn and X. Global Media Contact Corporate Communications media@ View original content to download multimedia: SOURCE Ivalua Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18-07-2025
- Business
- Yahoo
HSBC Pulls Plug on Geopolitical Risk Team--Just as Global Tensions Boil Over
HSBC Holdings Plc (NYSE:HSBC) is winding down its geopolitical risk team, a group once tasked with helping top executivesand occasionally clientsnavigate rising global instability. The decision affects fewer than 10 roles across Asia and Europe, but its timing has raised eyebrows. It comes just as tensions between the U.S. and China are again flaring, and President Donald Trump's return to power adds fresh uncertainty to global trade flows. HSBC says existing teams will now absorb the risk advisory function as part of a broader effort to streamline operations and cut costs under CEO Georges Elhedery. This move puts HSBC on a different path from some of its competitors. JPMorgan recently launched a Center for Geopolitics offering insights on the Middle East, Russia-Ukraine, and other hot-button regions. Goldman Sachs and Lazard have also been expanding geopolitical advisory offerings, aiming to give clients a strategic edge in a volatile landscape. Meanwhile, investment banking revenue across the top five U.S. banks remains nearly 40% below 2021 levelsdragged down by deal inertia tied to geopolitical uncertainty. The demand for sharper political intelligence isn't slowing down. In fact, it could be accelerating. HSBC insists it's not backing away from helping clients manage global riskjust doing it differently. We continue to focus on supporting our clients as they navigate a complex and fast-moving international environment, the bank said in a statement. But paired with Wells Fargo's recent move to halt travel to China after a senior banker was blocked from leaving the country, the sector's anxiety is palpable. Whether streamlining pays offor leaves HSBC exposedwill be one of the more interesting banking stories to watch in the months ahead. This article first appeared on GuruFocus.
Yahoo
18-07-2025
- Business
- Yahoo
HSBC Pulls Plug on Geopolitical Risk Team--Just as Global Tensions Boil Over
HSBC Holdings Plc (NYSE:HSBC) is winding down its geopolitical risk team, a group once tasked with helping top executivesand occasionally clientsnavigate rising global instability. The decision affects fewer than 10 roles across Asia and Europe, but its timing has raised eyebrows. It comes just as tensions between the U.S. and China are again flaring, and President Donald Trump's return to power adds fresh uncertainty to global trade flows. HSBC says existing teams will now absorb the risk advisory function as part of a broader effort to streamline operations and cut costs under CEO Georges Elhedery. This move puts HSBC on a different path from some of its competitors. JPMorgan recently launched a Center for Geopolitics offering insights on the Middle East, Russia-Ukraine, and other hot-button regions. Goldman Sachs and Lazard have also been expanding geopolitical advisory offerings, aiming to give clients a strategic edge in a volatile landscape. Meanwhile, investment banking revenue across the top five U.S. banks remains nearly 40% below 2021 levelsdragged down by deal inertia tied to geopolitical uncertainty. The demand for sharper political intelligence isn't slowing down. In fact, it could be accelerating. HSBC insists it's not backing away from helping clients manage global riskjust doing it differently. We continue to focus on supporting our clients as they navigate a complex and fast-moving international environment, the bank said in a statement. But paired with Wells Fargo's recent move to halt travel to China after a senior banker was blocked from leaving the country, the sector's anxiety is palpable. Whether streamlining pays offor leaves HSBC exposedwill be one of the more interesting banking stories to watch in the months ahead. This article first appeared on GuruFocus.
Bloomberg
18-07-2025
- Business
- Bloomberg
HSBC Disbands Team Focused on Managing Geopolitical Risks
HSBC Holdings Plc is disbanding a team of staffers that were focused on identifying and managing geopolitical risk even as the possibility of such threats has ratcheted up since US President Donald Trump returned to power. The move will impact fewer than 10 roles across Asia, Europe and other regions, according to people familiar with the matter. Some of those staffers have been given the opportunity to apply for other jobs within the lender, they said, asking not to be identified discussing personnel information.
South China Morning Post
15-07-2025
- Business
- South China Morning Post
Trump's trade policies drive Hong Kong industry's ‘China plus N' shift
Hong Kong's industrial sector is increasingly adopting a 'China plus N' strategy as a primary defence against unpredictable United States trade policies, with about 70 per cent of its members already operating in, or moving to, Southeast Asia, according to a report. Steve Chuang Tzu-hsiung, chairman of the Federation of Hong Kong Industries, said that this strategy was a calculated hedge against geopolitical volatility that has been years in the making. 'You don't know which madness [US President Donald] Trump will have tomorrow,' said Chuang. 'It could be 20 per cent in Vietnam or it could change tomorrow, so we have already done our homework.' Chuang clarified that the 70 per cent diversification figure was derived from a survey conducted among the federation's members late last year. The 'China plus N' strategy involves diversifying production and supply chains to multiple locations beyond mainland China, aiming to mitigate geopolitical and economic risks concentrated in a single country. The proactive diversification into the Association of Southeast Asian Nations (Asean) bloc is a direct response to years of tariff uncertainty.
