Tech can aid geopolitical risk mapping

The year 2026 begins with a new geopolitical crisis as the conflict in Venezuela could have a cascading impact on energy markets.

- PRANJAL SHARMA

Anticipating, assessing and absorbing risks is now a constant concern for most business leaders. As geopolitical uncertainties fester and grow, this year is likely to throw up more unprecedented risks.

Many organisations have published their risk assessments for this year. European financial leader ING for instance outlines ten potential risks for the global economy in 2026, including an AI bubble burst, inflation from supply bottlenecks, US tariff changes, European consumer spending shifts, US-China tensions over rare earths, oil price spikes, fiscal crises, China’s property downturn, and geopolitical shifts like a Ukraine peace deal.

Even though the AI bubble could be a challenge, emerging technologies are being used for risk modelling that can help manage unplanned changes. Like many assessments, it is difficult to assess which ones will play out as predicted. Consequently, companies are leaning towards AI to help them interpret disruptive changes. AI-powered scenario planning is transforming the way organisations approach risk management and strategic decision-making.