KPMG in Bahrain has launched its ‘Top Risks Report 2024’, outlining a complex landscape of geopolitical, economic, and technological challenges facing businesses and economies worldwide, including Bahrain and the wider GCC.

“This year’s report highlights a shifting environment where geopolitical tensions, economic uncertainties, and technological advancements intertwine,” said KPMG Bahrain managing partner Jamal Fakhro.

“Bahrain, as a strategic player within the GCC, needs to remain alert and adaptable to navigate these changes effectively.”

The report emphasises the importance of understanding and mitigating these risks for businesses in Bahrain, particularly in the context of economic diversification and technological adoption.

“As Bahrain continues its economic diversification journey and embraces new technologies, risk mitigation strategies are crucial for sustainable growth,” commented Jeyapriya Partiban, head of advisory at KPMG Bahrain.

“The report underlines the need for robust governance and operational resilience, which are key for weathering uncertainties.”

Key takeaways from the KPMG report include:

Rising geopolitical tensions continue to threaten supply chain stability;

Businesses may prioritise political stability over economic factors when making investment and location decisions;

Companies will need to take a proactive approach towards developing strategies and policies for artificial intelligence;

Diverging trends in environmental, social, and governance (ESG) regulations across regions pose challenges for companies;

Businesses must develop proactive strategies to manage their exposure to geopolitical tensions.

The report emphasises the importance of comprehensive risk management for businesses. Companies are urged to gain a clear understanding of their risk landscape, prioritise critical risks, and develop response plans for swift and consistent action.

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