Top bosses briefed by Foreign Office on global risks
Top business executives are set to receive briefings from the Foreign Office on global risks including conflicts and trade tensions as part of a wider strategy to help UK firms expand overseas.
Representatives of the Premier League, Lloyds Bank and PwC are among those attending a first-of-its-kind event at Lancaster House where leading diplomats are set to provide advice on doing business in countries across the world.
The government’s new advisory service, which has been titled the Geopolitical Impact Unit, has been created to give firms “straight from the source” insight on global tensions and expanding abroad, tying up the government’s growth mission with foreign policy amid “turbulent geopolitical times”.
Officials also hope it can replace “expensive” private consultants, allowing companies to spend less on mitigating costs of risks.
Chief diplomat David Lammy said the initiative can help provide businesses with expertise on new areas of interest to the UK and link up business leaders across the world.
“We are helping to equip British business with the insights and contacts they need to compete and win in global markets,” Lammy said.
“Working with business in this way, the Foreign Office is fast becoming the global arm for UK Plc, so we can create jobs and put more money into working people’s pockets.”
Foreign Office aims to offer alternative to risk experts
The first summit on Monday afternoon focussed on markets across South East Asia, including Indonesia and the Philippines.
In a separate meeting, investment minister Poppy Gustafsson met with executives from Shinhan, South Korea’s second largest bank, to announce an investment of £2bn into energy, digital assets and the wider financial services sector.
Shinhan chief Jung Sang Hyuk said the expansion of its London office was a “strategic decision” to allow UK-based workers to deliver greater value to customers.
City firms have cut teams dedicated to geopolitical risk despite simmering fears of tariffs increasing, conflicts erupting and other economic shocks emerging.
HSBC has cut its geopolitical risk team, according to a recent report by Bloomberg, while Citi has moved jobs out of London and New York where employees might be less expensive.
JP Morgan meanwhile began its own Center for Geopolitics to offer advice on different markets while Goldman Sachs also offered advice on international relations.
The UK government has taken active steps to collaborate more closely with top global investors, with its concierge service offering foreign companies and entrepreneurs advice on visas and regulation set to launch later this year.
Top executives have privately questioned whether such initiatives are necessary, indicating that specialist advisers were already available and the threat of higher taxes on businesses and wealthy investors remained.