In a previous Blog, I wrote the article “Does your Business Strategy consider the Top 5 Economic Risk Factors facing businesses in 2023?”, in preparation for the APSCo Midlands Business Forum on 28 March 2023. The agenda is “The importance of flexing your business strategy to mirror changing economic and political landscapes”. The Keynote speaker will be Santander’s Chief Economist Francis Haque, who will be reviewing the UK economy, business opportunities and challenges that lay ahead in 2023.
In preparation for the meeting, I have been thinking about the Political Risks that recruitment businesses will face in 2023.
So what is Political Risk ?
It is those risks that your business could suffer because of political changes in a country such as instability, conflicts, changes in government, changes in relations between countries, as well as changes that occur in a country's policies, business laws or investment regulations.
There are a variety of political decisions governments make that can affect individual businesses, industries, and the overall economy, and they are not unique to international business, as we are living in a more connected world, Political Risks can still affect your local business and you may not see them coming. This means that when something goes wrong in one part of the world, you can feel the impact halfway around the globe. Remember when the 20,000 tonne container ship “Ever Given” got stuck in the Suez Canal in March 2021, shutting down international trade for a week.
Political Risk facing Recruitment Businesses
For Recruitment Businesses, here are my thoughts as to the top 6 key Political Risks ... do you agree ? Am I missing any ?
Labour Laws - in particular employment status and wage constraints
Immigration - restrictions on movement of skilled workers
Tax Regulations - uncertainty about IR35
Environmental Policies - in particular in response to climate change
War, terrorism, and civil unrest
Sanctions
What do you need to ?
So as you give attention to your business strategy for 2023, thinking through the Political Risk that could have an impact on your business will help you think through the potential consequences and then consider risk mitigation plans to minimise the potential disruption.
Feel free to add your thoughts and whether you consider there are more pressing Political Risks facing the sector.
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