Market Reality

High cost of unstable environment

Today’s business environment has shifted quickly. Our economic future feels uncertain. Legal decisions feel less predictable. Engaging in policy conversations feels riskier. These pressures don’t just affect executives. They shape how every person shows up at work and how steady teams feel in a moment of change. They also impact investment, innovation and overall market resilience.

Increased cost of capital

When the civic environment becomes harder to predict, capital becomes harder to deploy. Leaders feel this pressure inside planning cycles, investment reviews, and when making decisions about long-term growth.

• Political risk increases cost of capital and reduces corporate performance across sectors (EY)

• Firms with higher exposure to political uncertainty reduce investment and hiring (American Finance Association)

• Instability deters domestic and foreign investment and raises borrowing costs (The World Bank)

Slower innovation

Companies shift from long-term growth to short-term survival when civic uncertainty increases. Teams spend more time managing risk and less time building the future.

• Political risk significantly reduces patenting (International Journal of Managerial Finance)

• Political risk decreases R&D and human capital investment (Boston University)

Weakened supply chains

When instability rises, supply chains become fragile, markets become unpredictable, and credit conditions tighten. Leaders feel that strain through shortages, delays, and shifting customer behavior.

• Political risk significantly increases supply chain vulnerability (World Bank)

• One of the primary forces driving supply chain redesign is political conflicts (S&P Global)

Distracted employees

External volatility shows up inside the workplace, negatively impacting morale, productivity, and culture. Leaders feel forced into reactive decisions when teams do not have a grounding source of information.

• Employees experience stress from political conflict at work (SHRM)

• Political conversations at work negatively affect focus, morale, and relationships (Gartner)