Are certain industries more susceptible to geopolitical risk than others?

Yes, certain industries can be more vulnerable to geopolitical risks than others. Geopolitical risk refers to the potential disruption or volatility caused by political events, policies, or conflicts at the national or international level. Industries that heavily rely on international trade, global supply chains, or are in strategic sectors such as energy, telecommunications, and defense, tend to be more exposed to geopolitical risks. For example, companies operating in the energy sector could face risks related to political instability in oil-producing countries, trade disputes, or the imposition of sanctions. Similarly, the technology sector can face geopolitical risks due to data privacy concerns, restrictions on foreign investment, or trade tensions affecting supply chains. Conversely, industries rooted in local markets, such as healthcare or retail services, may have less susceptibility to geopolitical risks as their operations are less reliant on international dynamics.

This mind map was published on 24 November 2023 and has been viewed 117 times.