Global dangers to be aware of in 2019 have been identified by the Chartered Institute of Directors, Nigeria (CIoD), with a focus on the effects these risks may have on corporate governance and the surrounding business climate.
The risks, according to Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise (CPPE), include growing geopolitical instability, which is thought to be the worst threat to the world economy.
At the 2023 CIoD annual banquet and awards in Lagos, he made this statement while giving a speech titled “Global Trends in Governance: Adapting to a Changing World.”
He brought up the concerns surrounding the Russian-Ukrainian conflict, stating that trade and the economy will continue to be affected.
According to Yusuf, the world economy would suffer greatly if the conflict worsened.
The economist also discussed problems pertaining to the rivalry and competition between the US and China, which, given the size of their respective economies, he claimed had major ramifications for international commerce.
He claims that there is a chance that the Israeli-Palestinian conflict could worsen, which would have serious ramifications for regional peace, the polarisation of the world economy, trade wars, asset nationalisation, and other issues.
Widespread cybercrime, natural catastrophes, extreme weather, mass forced migration, rising inflation, the energy supply issue, food shortage crisis, and climate change crisis are some of the other major concerns, according to Yusuf.
According to him, there would be several situations when compliance and competitiveness have to be traded off, particularly in industries with low entry barriers.
He emphasised that the situation was further supported by the sizable unregulated informal economy.
Maintaining good corporate governance in a setting where institutions are weak and unethical business practices are rewarded is a significant problem, according to the head of CPPE.
He pointed out that given its size, population, entrepreneurial spirit, and wealth of natural resource endowments, Nigeria’s economy presents enormous investment prospects.
The expert acknowledged that there are significant structural flaws and significant macroeconomic headwinds at the moment.
He asserts that Nigeria possesses the essential elements to reverse the current situation and reap the rewards of the changes.
Tijjani Borodo, the President and Chairman of the Governing Council, CIoD, stated that decision-makers, directors, and leaders have a shared responsibility to comprehend the trends, adapt, and effectively lead their organisations in light of the ever-changing global landscape that affects all aspect of human existence.
“The worldwide corporate landscape has undergone notable changes in the last several years. From the quick development of technology to the continuous transformation of society, from worries about climate change to shifting geopolitical landscapes.“
“It is our responsibility as leaders in our domains to navigate these changes while maintaining the values of moral leadership and good governance. Our success as directors will be determined by our capacity to overcome these obstacles and take advantage of the opportunities they bring.”
“The theme offers many opportunities to clarify the new developments that are influencing how the government will develop in the future. Our potential to lead in a world that is changing quickly will be determined by our ability to predict and adapt to global trends in governance,“ he stated.
