—Md Kafi Khan—

As the world enters 2025, the global risk landscape is reshaped by political uncertainty, accelerating technological disruption, and rapidly evolving geopolitical tensions.

Riskonnect’s New Generation of Risk Report 2025 reveals a world where companies face risks that are faster, more interconnected, and less predictable than ever before.

What is particularly striking is that these realities are not distant global phenomena—they directly echo the emerging challenges of Bangladesh’s own economic, political, and technological environment.

This article synthesises the global insights from the report and interprets them in the context of Bangladesh’s financial sector, corporate ecosystem, regulatory bodies, and national development ambitions.

1. 1. Political Risks: A Global Surge with Local Echoes

Risk Connect identifies political risk as one of the top three global threats in 2025. Nearly 97% of organisations worldwide report some level of impact, and 40% describe the impact as significant or severe. Political instability has forced companies to stall hiring plans, delay investments, and postpone expansion strategies  .

BANGLADESH CONTEXT:

While Bangladesh has enjoyed sustained economic momentum over the past decade, it also faces periodic political tensions, regulatory uncertainty, and policy transitions that influence business confidence. For example:

• Foreign investors have begun conducting deeper due diligence on political stability and regulatory predictability.
• Local banks and corporates sometimes delay major technology or capital investments during politically sensitive periods.
• Policy reforms such as banking sector consolidation, BASEL III implementation, or import policy adjustments create operational complexity.

Global data shows only 17% of leaders feel very prepared to manage political risks even when those risks are anticipated  .

This finding mirrors a structural gap in Bangladeshi institutions: recognition without preparation. Organizations often acknowledge risks but do not build predictive, structured mitigation plans.

2. Growing Geopolitical Instability and Bangladesh’s Exposure

The report highlights that 66% of global companies now have geopolitical risk plans an enormous jump from just 19% last year. Yet only 18% feel very prepared to manage such shocks.

Relevance for Bangladesh:

Bangladesh’s economic model is deeply tied to global trade:

• RMG accounts for 84% of exports
• Foreign currency stability relies heavily on diaspora remittances
• Energy security depends on external markets
• Critical digital infrastructure relies on foreign technology vendors

Geopolitical shocks US-China trade tensions, Middle East instability, Red Sea disruptions, EU regulatory changes directly impact Bangladesh through supply chain delays, export uncertainty, higher input costs, and currency volatility.

Global experience suggests that even when plans exist, actual disruptions tend to exceed expectations. Bangladesh’s corporates and government agencies must therefore shift from reactive response to scenario-based preparedness.

3. Cybersecurity Threats: Trade Wars, State Actors, and Rising Digital Vulnerability

According to the report, 62% of global leaders fear increased cyber exposure during geopolitical tensions, especially state-backed attacks and supply-chain breaches  .

BANGLADESH’S REALITY:

• The financial sector continues facing cyberattacks targeting SWIFT systems, ATM networks, and digital banking platforms.
• The 2023–2024 global breaches (MOVEit, Crowdstrike, etc.) demonstrated how vulnerabilities in third-party software can paralyze local operations.
• State-sponsored actors increasingly target emerging markets with weaker cyber controls.

Bangladesh’s rapid digitisation QR payments, MFS expansion, cloud migrations heightens exposure, especially when cybersecurity governance is uneven across institutions.

4. The Rise of Agentic AI: Opportunity with Severe Governance Risks

The report warns that nearly 60% of organizations are exploring agentic AI, yet 55% have not assessed its risks  .

Even more concerning: 15% of leaders don’t know if their organizations are adopting agentic AI at all.

GLOBAL CONCERNS INCLUDE:

• Data privacy vulnerabilities (68%)
• Autonomous decisions that conflict with business goals or legal requirements (52%)
• Runaway processes such as unintended transactions (38%)

BANGLADESH IMPLICATIONS:

Bangladesh is at a critical moment in AI adoption:

• Banks experiment with gen AI for customer service, analytics, and onboarding.
• Regulatory clarity on AI governance, data localization, and ethical AI is still evolving.
• Shadow AI use is increasing rapidly among employees, echoing the global trend where 90% of workers use unauthorised chatbots.

The absence of institution-level AI governance now poses both regulatory and operational risks.

5. Third-Party and Nth-Party Risks: A Global Weakness Reflected Locally

The report reveals that while 85% of organisations claim to have business continuity plans, only 8% can assess risks across multiple layers of their supply chain. A full 16% cannot monitor third-party risks at all

This is alarming for Bangladesh.

Bangladesh’s digital and financial ecosystems depend on:

• Global software vendors (core banking, risk engines, ERP)
• Cloud infrastructures
• International payment gateways
• Telecom companies
• Foreign logistics and freight operators

Hidden vulnerabilities in second-tier and third-tier suppliers can lead to:

• Banking outages
• National payment disruptions
• RMG supply chain instability
• Data compromise
• Export delays

The country requires a deeper, more structured framework for third-party risk management, especially within banks, NBFIs, telecom operators, and logistics networks.

6. AI in Risk Management: Adoption Rising, Policy Lagging

Worldwide, AI use in risk management jumped from 62% (2024) to 70% (2025). Top applications include assessing risks (34%), scenario planning (28%), and forecasting (28%). Yet only 12% feel very prepared to manage AI risks.

Bangladesh’s opportunity:

Bangladesh can leapfrog traditional bottlenecks by adopting AI-driven:

• ECL modeling for IFRS 9
• Stress testing
• Scenario-based capital planning
• Anti-fraud systems
• Climate risk projections
• Credit scoring models

But without governance—policy, oversight, and trained personnel AI introduces its own vulnerabilities.

7. Risk Governance Strengthens Globally, Budgets Do Not

The report notes:

• 60% of companies now have a Chief Risk Officer (CRO)
• Budgets, however, remain nearly flat only 28% report increased tech budgets for risk management

Bangladesh’s parallel challenge:

The governance structure in banks and corporates is evolving:

• BRMCs and Audit Committees are becoming more structured.
• Risk and compliance functions are gaining visibility.
• Yet budgetary allocation for digital risk tools, AI governance, and cyber resilience remains modest.

This mismatch weakens resilience efforts.

The Bangladesh Imperative: Strategic Shifts Needed Now

Drawing from global evidence and local realities, Bangladesh needs to upgrade its risk posture across several fronts:

1. Institutionalize Political and Geopolitical Risk Scenario Planning

Banks, corporates, and regulators must develop annual scenario planning cycles aligned with global volatility.

2. Build National Cyber Resilience

Bangladesh Bank, BTRC, banks, MFS operators, and ICT Division must jointly develop a cyber readiness framework modeled on NIST, DORA (EU), and MAS (Singapore).

3. Create a National AI Governance & Ethical AI Framework

To regulate agentic AI, protect data, and manage algorithmic bias.

4. Enhance Third-Party Risk Oversight

Institutions must map critical dependencies and assess risks beyond tier 1 suppliers.

5. Invest in Risk Technology and Risk Talent

Budget allocation must catch up with global trends.

AI-driven tools, risk dashboards, and integrated GRC systems are now essential—not optional.

Reflection : A New Generation of Risk Requires a New Generation of Preparedness

The New Generation of Risk Report 2025 shows a world where disruptions are not exceptions—they are the norm. The global risk environment now evolves faster than traditional governance and preparedness structures.

For Bangladesh, the message is clear:

Recognize the risks. Prepare for the extremes. Build resilience before disruption hits.

In an interconnected world, Bangladesh cannot afford reactive risk management. With strategic foresight, stronger governance, responsible AI adoption, and deeper cross-border risk visibility, the country can not only withstand global shocks, but emerge more competitive, secure, and resilient.

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Writer: Corporate Governance Professional