Geopolitical Risk Advisory
Chertoff advises companies in identifying sources of geopolitical risk to their business and developing cost-effective strategies to mitigate and monitor risks.
An Environment Fraught with Risk
Intricate political and commercial relationships have emerged from globalization. But as these intersect with growing trends of instability – declining U.S.-China relations, evolving security threats, aftermath of the COVID-19 pandemic, ongoing conflict in Ukraine – multinational corporations face growing uncertainty in navigating geopolitical risk.
The increasingly volatile impacts of geopolitical risk stretch across financial, operational, safety, regulatory, and reputational dimensions.
While not all risk can be eliminated, The Chertoff Group illuminates these risks and geopolitical factors, allowing business leaders to make informed decisions as they oversee current operations, make plans for foreign investment, and expand their operations.
Leveraging Our Expertise to Navigate Geopolitical Risk
Our team’s background in national security, intelligence, cybersecurity and commerce provides clients with an unrivaled perspective of evolving global relationships, challenges and tensions.
The Chertoff Group leverages this broad and deep expertise and strong past performance to support business leaders who are facing challenges – including physical and cybersecurity, supply chain disruptions and political issues. We assist clients in identifying sources of geopolitical risk to their business – and assess the likelihood and potential impacts of specific threats.
Our team works with C-suite leaders to inform and develop cost-effective strategies to mitigate and monitor geopolitical risks across the spectrum of their business activities and locations.
Navigating the geopolitical landscape can be a challenge. But you don’t have to go it alone. The Chertoff Group team spans the disciplines and sectors relevant to geopolitical risk management – political, regulatory, international affairs and technology – to mitigate your risk and advance your business objectives.
The Chertoff Group helps clients navigate the CFIUS and FOCI processes to shape mitigation agreements that work for both the business and the U.S. Government.
Given growing concerns over the security of U.S. software supply chains and potential links to countries of concern, the U.S. Government’s (USG) risk tolerance has decreased dramatically while regulatory and supply chain requirements for companies doing business with the USG have increased. The Department of Defense and other U.S. agencies are focused not only on security of supply chains but also on foreign ownership, control or influence (FOCI) with a keen interest in companies’ ownership, leadership and areas of operation, specifically with a nexus to China and Russia.
A View of the Regulatory Landscape
The United States attracts investments from around the world, but increasingly, U.S. regulators are on guard against foreign direct investments that have the potential to threaten national security.
As a result, the Committee on Foreign Investment in the United States (CFIUS) is empowered with broad authorities and expanded resources to disrupt – and even kill or unwind– mergers, acquisitions, takeovers and non-controlling investments from foreign sources.
For a business making the investment – or seeking to attract investment, anticipating and reducing the risks perceived by the agencies in the CFIUS review process – in advance of filing with the CFIUS Committee – increases the likelihood of obtaining approval. And that’s where The Chertoff Group delivers significant value.
Mitigation Support: Using Our Insights to Your Advantage
Mitigation agreements are now required by CFIUS for many foreign investments – not only by individuals and/or entities from countries of concern but also by corporations and entities such as sovereign wealth funds from friendly and allied countries.
The mitigation of potential risks involved with foreign investments is not just a legal matter, although the agreement is legally binding. The view of “risk,” often differs from one CFIUS agency to another, making it challenging for investors to gauge what concerns may surface during the CFIUS review process.
The Chertoff Group works with clients and their CFIUS counsels early in the review process, applying our experience in national security policy and regulations to provide insights and options that help address U.S. Government concerns and establish trust.
With our unique combination of regulatory expertise and insights into agency perspectives, The Chertoff Group can work with clients to shape mitigation agreements that meet business and U.S. Government needs.
How The Chertoff Group Can Help
Assess the risks associated with transactions likely to require CFIUS review, including relevant past transactions.
Provide counsel on options to limit CFIUS-related risks and/or avoid CFIUS review
Advise on potential mitigation measures to address national security concerns.
Engage our unique relationships across the CFIUS agencies.
Compliance Assessment & Monitoring
Assess companies’ compliance governance structures and provide third-party monitoring of mitigation agreements.