Yearly Archives: 2018

Late in 2017, the EY Center for Board Matters highlighted the importance of anticipating and planning for geopolitical and regulatory changes in our report, Top priorities for US boards in 2018. That priority has since intensified. In the first few months of 2018, US stock indexes experienced the highest levels of volatility since 2014. Long-standing trade agreements, tax and regulatory systems, and defense treaties are being renegotiated, transformed or absolved. And the International Monetary Fund has warned that rising US-China trade restrictions are threatening to derail growth and undermine confidence.

Rising geopolitical tensions and increasing electoral share for populist parties are a concern for businesses. With policy becoming harder to predict, many executives see policy uncertainty, geopolitical tensions, and changes in trade policy and protectionism as key risks to their business. At the same time, business leaders are optimistic about the near-term US outlook—in part because of deregulation and the passage of US tax reform. In fact, the recent Borders vs. Barriers report from EY, Zurich Insurance and the Atlantic Council indicates that despite concerns about policies restricting their ability to transport goods and raise capital, global CFOs are overwhelmingly bullish on investing in the US, and 71% expect continued improvement in the US business environment in the next one to three years.

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