The dynamics of global risks: Sociopolitical risks in strategic management and policy decisions

Abstract

The development of the risk landscape has shifted significantly in recent years. The magnitude and consequence of more varied risks than ever previously experienced create new hazards, and exacerbate existing ones. Global risks such as climate change, environmental pollution, globalised economies that are increasing the polarization of wealth and income, public health hazards disrupting socio-economic and political stability, and cyber-terrorism are just some examples of the sources of uncertainty in deterministic dynamics of shocks in risk. The aforementioned risks that arise from political (governmental and other) behavior and events, and adverse social conditions associated with poor health, such as food insecurity and housing instability are rooted into the challenges of the 21st century, and they create social, political and economic shocks that shape a particular environment and how these affect organizations, nations, and the lives of its inhabitants. This chapter addresses the research question: “How can world leaders integrate the social and political risks into strategic management and policy decisions?”