Corporate Finance
Professional Legal Services
Full Credential Description
In early 2022, an Asia-Pacific financial firm sought assistance from EY-Parthenon’s Geostrategic Business Group (GBG) to navigate the complexities arising from geopolitical tensions, particularly between the US and China. The firm was concerned the potential impacts of these tensions on capital flows, liquidity, and currency volatility, and needed to understand various scenarios that could unfold as a result of these geopolitical dynamics. The GBG team conducted extensive qualitative research, including interviews with subject matter experts and historical analysis of financial market reactions to similar geopolitical events. This research culminated in the development of five potential scenarios, with a focus on three key scenarios that the client wanted to explore in detail. For each scenario, the team outlined possible outcomes, key drivers, international responses, and the financial implications for the firm. To further refine their insights, the EY-Parthenon team facilitated two workshops with the client’s senior leadership. These sessions aimed to stress-test the developed scenarios and discuss actionable strategies to enhance the firm's resilience against potential geopolitical shocks. The workshops helped the client identify risks and consider adjustments to their business operations to better position themselves in the face of uncertainty. As a result of this engagement, the financial firm gained a robust framework for monitoring geopolitical developments, utilizing identified signposts to track US-China tensions. This proactive approach enabled the firm to adjust its financial structure and capital as necessary, enhancing its overall resilience. The GBG's work not only prepared the client for specific geopolitical risks but also fostered a culture of strategic preparedness, allowing the firm to respond more effectively to any future shocks.
Qualifications & Expertise
Leading international law firm with verified case studies