Partner Insight: Effective Risk Management Is Vital In A Time Of Crisis

The war in Ukraine, in addition to its tragic human costs and the displacement of millions of people, has had major financial repercussions as governments and companies have moved to cut Russia out of the international financial system and supply chains.

"Supply chain transparency, research and a robust ESG rating framework are vital for effective risk management in a time of crisis, says Jenn-Hui Tan, Global Head of Stewardship and Sustainable Investing at Fidelity International.

The war has had clear implications for the way countries source energy and it has exposed the risk on reliance on autocratic regimes for oil and gas.

"We believe it will drive governments to reduce energy dependence and while there are still challenges ahead for this transition, we expect in the no-too-distant future, Europe's energy grid will be both cleaner and more self-sufficient.

Commodities such as steel and aluminium were already rising prior to the invasion of Ukraine and the war has accelerated those gains.

"Rare metals need for needed for electric motors, photovoltaic cells and batteries could be particularly sensitive to price squeezes. Retaining access to these key supply chains will be key to a successful transition to renewable energy."

For more on how Fidelity is navigating risk during this crisis, as well as the broader outlook for sustainability in 2022, read our exclusive guide

This post is sponsored by Fidelity International

RECENT NEWS

Gyrostat Capital Management: The Hidden Architecture Of Consequences

When Structures Themselves Become A Risk In portfolio construction, risk is rarely where we look for it.... Read more

Gyrostat November Outlook: The Rising Cost Of Doing Nothing

Through the second half of 2025, markets have delivered a curious mix of surface tranquillity and instabi... Read more

Gyrostat Capital Management: Blending Managers - From Style Diversification To Scenario Diversification

The Limits of Traditional Diversification For decades, portfolio construction has ... Read more

Gyrostat October Outlook: Beneath The Calm, The Cost Of Protection Rises

 Even as global equity indices remain near record highs, the pricing of risk is shifting quietly ben... Read more

Gyrostat Capital Management: Solving The Nastiest Problem In Finance

Retirement Income and Sequencing Risk Executive Summary ... Read more