Assessing the Impact of Geopolitical Events on Supervisory Objectives

The world is undergoing profound geopolitical shifts that are making it more fragmented, unstable, and protectionist. The global trading system is under strain, and recent government actions have heightened macroeconomic and geopolitical uncertainty against a backdrop of growing financial vulnerability.

Governments are adjusting policies and alliances in response, while business leaders increasingly recognize and adapt to these risks. For supervisory authorities, the challenge is to stay ahead of geopolitical developments, understand their implications, and proactively address the risks they pose to supervisory objectives.

This Toronto Centre Note offers a framework to help supervisory authorities identify, assess, and respond to diverse and complex geopolitical risks that affect their objectives.