By Medinex Specialist Centre Team
May 16, 2025
The current global tension and extreme volatility present unprecedented business risks worldwide. Without the certainty of the possible resolutions of the ongoing military conflicts at Ukraine and the Middle East, trade disputes arising from the tariffs imposed by the U.S. on many countries around the world, including China, these severe risks are likely to continue for the next few years or more. Businesses must identify and adopt the right measures to tackle these risks now. But first, let us identify these business risks.
Escalating Trade Wars (U.S. vs. China & Others)
The imposition of tariffs and retaliatory tariffs will significantly impact costs on imports/exports. While the impact will vary depending on the country and the industry, they are likely to result in reduced global trade volume and business profit margins. Manufacturing sectors may face significant supply chain disruptions, delaying production and resulting in higher costs of production, further slowing down international trade.
Financial Market Volatility
With less predictable currency fluctuations, exchange rate risks will also increase, further impacting international transactions. This instability may also lead to investor uncertainty, resulting in higher borrowing costs with interest rate hikes.
Poor Global Business Climate
Continued geopolitical tensions with the Russia-Ukraine war and the Middle East conflicts, as well as the aggressive protectionist measures and countermeasures by the U.S. and China, will continue to contribute to market nervousness. Regulatory uncertainty and inflation will further retard foreign investments and consumer confidence resulting in economic slowdown or even possible recession.
Tailored-made strategies to reduce your business risks must be devised based on the nature and status of your business, your business objectives and current industry outlook, etc. It is important to employ qualified business consultants to help you with a comprehensive plan. To start you off on thinking how you can reduce your business risks, we highlighted some of the key areas you should address.
A
Diversification & Supply Chain Resilience
B
Financial Risk Management
C
Market & Regulatory Adaptation
D
Technology & Innovation
With so much volatility and unpredictability today, effective risk management practices are no longer a good-to-have but a necessary pillar for better business resilience. Besides embracing agility, diversity and financial prudence, it is important to start by taking these practical steps listed below.
If you need further consultation, do not hesitate to arrange to speak to us!
1 Farrer Park Station Road, #12-20, CONNEXION, Singapore 217562, WhatsApp: +65 8023 3505 Email: contact@medinex.com.sg
1 Farrer Park Station Road, #12-20
CONNEXION, Singapore 217562
Tel: +65 8023 3505
Email: contact@medinex.com.sg
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