Lockton: geopolitical risk now a major risk management issue

New research from Lockton has claimed that geopolitical risk is no longer a discrete, manageable event – it is a persistent operational force that is simultaneously disrupting employees across countries, accelerating state-linked cyber-attacks and damaging critical physical infrastructure.

New Lockton report, Mapping Organisational Exposure to Geopolitical Risk, says that businesses managing these threats in isolation are structurally exposed, and calls for a shift to more dynamic and integrated approaches to risk management.

Conflict-related property losses over the last five years now exceed those of the entire previous decade, reflecting a level of conflict on an unprecedented scale, with the recent Middle East conflict alone driving losses of approximately $2.1bn. Energy facilities, critical infrastructure and data centres are increasingly being targeted by state actors during geopolitical conflict.

The report examines a threat that spans physical damage, supply chain disruption, cybersecurity, workforce displacement, and financial and reputational exposure. It analyses how organisations can build resilience through more continuous and coordinated approaches to managing risk.

Clarissa Franks, head of retail at Lockton, said: “Geopolitical risk is no longer episodic; it must now be viewed as a dynamic force that frequently defines core aspects of organisational risk and shapes strategic decision-making. Organisations that continue to treat its effects in isolation will find themselves structurally unprepared. Those that move beyond static, periodic assessments will not only be better placed to maintain continuity under disruption, but also to respond decisively as conditions become more uncertain.”

As organisations adopt more globalised operating models – with internationally dispersed teams and mobile talent – their exposure to geographically diverse risks has increased significantly. Risks include rising exposure to violence and kidnapping in high-volatility regions; significant psychological strain, including stress, uncertainty, and potential grief; and escalating operational and financial challenges linked to employee evacuation and displacement.

Joe Barnes, head of global mobility at Lockton, said: “People are an organisation's most valuable asset. During periods of geopolitical uncertainty or conflict, an employer's ability to respond quickly and effectively is critical. Organisations that integrate HR, global mobility, and risk management functions into a coordinated risk strategy benefit from greater workforce visibility, more informed decision-making, and enhanced duty of care. This preparedness not only helps protect employees but also strengthens organisational resilience when unforeseen events occur.”

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