GPI: Grappling with geopolitics

It can be a daunting task for internal auditors to grapple with how geopolitics impacts their organizations. After all, geopolitics includes broad and complex interrelated topics such as climate change, the outbreak of disease, political instability, economics, war, and conflict, all of which can present risks to the organization with little or no notice.

Geopolitical risks cannot be considered in isolation; these risks are quite interrelated. This paper briefly describes the impact of economics, war, and conflict on one particular topic that has pervaded global business news headlines — the price of oil. The authors consider the impact of the price of oil on multiple industries. Finally, they explore the key considerations for internal audit in addressing geopolitical risks to the organization.