Examines the ramifications of wartime scenarios on businesses.
The interaction between war and business performance.
Peace levels categorized as very high, high, medium, low, very low, and not included.
Improvements: 65 countries marked advancements in peace.
Deteriorations: 97 countries witnessed declines in peace.
Mentioned conflicts: Ukraine/Russia, Israel/Palestine, 9/11 incident.
Focus on effects rather than choosing sides.
Always present consequences:
Loss of human lives leading to suffering.
Destruction of infrastructure.
Economic losses in various sectors.
Loss of life affecting:
Employees and their family members, reducing workforce.
Customers affecting sales.
Destruction of infrastructure, buildings, and equipment.
Responsibility for costs:
Who is liable?
Role of insurance in recovery.
Psychological costs add to economic effects.
Increased costs in business operations:
Decline in consumer demand.
Increased transaction costs (new suppliers).
Higher salaries for at-risk employees.
A drop in foreign direct investment.
Potential new government regulation (e.g., increased taxes).
Overall impact on GDP.
Key impacts on supply chains:
Transportation difficulties leading to delays.
Uncertain delivery schedules.
Goods and service shortages.
Businesses face vulnerabilities not only to attacks but also to disruptions in the supply chain.
Explore potential opportunities during conflict situations.
Avoidance of public transport by locals.
Decrease in tourism following an attack.
Consumer consumption typically decreases temporarily.
Rise in defense and security spending.
Increases in racism and ethnic tensions.
Psychological fears influence spending habits.
Assessment of war impacts specifically regarding the 9/11 attacks.
Flight operations drastically altered:
US airspace was closed in the aftermath.
Illustrated an immediate effect on traffic and trade.
Key economic impacts captured:
Closed airspace for three days.
Diminished trade volume lasting four years.
Several airlines faced bankruptcy.
Heightened security measures created new trade barriers.
Significant financial losses recorded:
$14 billion in destroyed office properties.
100,000 jobs losses.
$50 billion depreciation in GCP.
20% reduction in air travel-related jobs.
Discussing if businesses can anticipate wartime events:
Importance of risk analysis and identifying risk hotspots.
Knowt
Note
Studied by 20 people
