Forbes Features Head of Europe Frederik Otto

AccountAbility's Director of Advisory Services - Head of Europe Frederik Otto has been quoted by Forbes in Chloe Demrovsky's article titled "Sustainability To Resilience: Adapt ESG Strategies In A Changing World."

The article emphasizes the need for businesses to expand their risk assessment frameworks to include geopolitical and domestic political risks, which are increasingly disruptive in today's interconnected and volatile world. Traditional risk assessments often overlook political instability and international tensions, focusing narrowly on sectoral or regulatory concerns. However, events such as the Russia-Ukraine war and Red Sea conflicts have demonstrated how these risks impact supply chains, amplify protectionism, and create inflationary pressures.

Otto highlights that broadening the scope of risk evaluations enables organizations to anticipate and mitigate these disruptions effectively. This includes assessing the entire lifecycle of products or services, including suppliers, particularly in emerging markets, where resilience investments may be limited.

Otto also notes the interconnectedness of risks, citing how phenomena like "polycrises" affect developed and developing regions differently, with examples like crime spikes during heatwaves due to temperature volatility. Proactive strategies, such as supply chain diversification and resilience-building, are crucial to safeguarding business operations and ensuring continuity amidst geopolitical instability and emerging threats.