Geopolitical Instability Forces A New Era Of Stress Testing

Ron Ratcliffe explores how risk teams are adapting to a world shaped by geopolitical uncertainty, persistent market volatility, and rapidly evolving risk regimes. He explains the importance of building scenarios that capture a broad range of potential outcomes and highlights how stress testing frameworks must continuously evolve as new events and risks emerge.

The discussion also examines the growing role of AI and advanced analytics in modern risk management. While technology is improving the ability to analyse unstructured data and identify patterns, Ratcliffe emphasises that human judgment remains critical when assessing geopolitical developments, calibrating scenarios, and making strategic risk decisions in uncertain environments.