Riskology by Infortal™: Episode 42 - Navigating New Diplomacy Trade Winds with Tom Hanson
Join Riskology by Infortal™ Host, Chris Mason, and Tom Hanson, the CEO and Founder of Channel Architect LLC, as they discuss the challenges companies are dealing with in the face shifting global diplomacy and trade relations.
Special Guest: Tom Hanson, the CEO and Founder of Channel Architect
Tom Hanson has more than 30 years of experience guiding companies and governments to trade and investment success in complex international markets. His California-based global trade advisory firm, Channel Architect LLC, builds scalable channel strategies for export-ready providers and prepares its local and national government clients on how to win and retain foreign investors in their jurisdictions.
Tom completed his tenure in 2023 as a commercial officer with the U.S. Foreign Commercial Service, with postings in Bucharest, New Orleans, Calgary, and São Paulo. Throughout, he strengthened the international competitiveness of American businesses and communities by promoting exports and attracting foreign direct investment while ensuring access to free and fair trade.
Infortal Worldwide:
Infortal™ Worldwide provides the full suite of due diligence investigation services to support your company’s risk management program and investment due diligence process. This includes investigation capabilities in over 160+ countries worldwide.
For over 35 years, Infortal™ has enabled clients across all industries to mitigate their business risks and protect employees and assets globally.
Infortal™ Worldwide is also at the forefront of examining how geopolitical risk can impact strategic decision-making, the long-term sustainability of your business, and the potential downstream impact on key partners and suppliers.
Infortal™ Worldwide focuses on solving risk before it starts.
Understanding the Changing Dynamics of International Commerce
In a rapidly evolving global economic landscape, international trade and diplomacy are key factors shaping business strategies, and this episode delves into these complexities. With decades of experience in both diplomatic and commercial sectors, Tom provides invaluable insights into strategic market entry and the current challenges and opportunities in international business. He emphasizes the strength of North America as a united trading bloc, underlining the geopolitical leverage it can wield on the global stage.
Navigating North American Trade: USMCA and Beyond
The importance of the United States-Mexico-Canada Agreement (USMCA) and its implications for companies operating within North America should not be understated. Strategic partnerships and robust distribution channels that can adapt to shifting policies and maintain market resilience are critical to dealing with shifting politics. The ability to leverage close geographic and economic ties with neighboring countries is vital for tapping into undiscovered revenue streams. This requires relationship building and understanding who you are doing business with across borders.
Read full show notes at Infortal Worldwide
Resources:
Infortal Worldwide
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Tom Hanson on LinkedIn
Chris Mason on LinkedIn
On January 20th, the President signed an Executive Order focused on designating cartels as foreign terrorist organizations.
This decision could reverberate throughout industries, requiring companies to adapt their approach to due diligence conducted on customers, clients, and suppliers. Third-party risk management teams must consider a heightened regulatory and criminal enforcement environment.
Tune in to Riskology by Infortal™ Episode 41, where hosts Dr. Ian Oxnevad and Chris Mason break down the potential impact of designating cartels as terrorist organizations.
Executive Order and Its Ripple Effect
Chris Mason emphasizes how "the stakes will be raised… both from a reputational standpoint and a criminal standpoint."
The designation of cartels as terrorist entities could fundamentally shift how businesses operate across the US-Mexico border. Tighter constraints, impacting banks, suppliers, and a wide range of industries, could have a chilling effect as businesses work to adapt their compliance programs to account for exposure to a new regulatory framework.
In-house counsel must also ensure that policies and procedures align with any emerging regulatory or legislative changes.
Cartel Influence on Legitimate Industries
Dr. Ian Oxnevad further illustrates the pervasive reach of cartels into legitimate sectors, using the avocado supply chain as a prime example. Businesses dealing with seemingly innocuous products must now consider the potential risk of indirect association with terrorist networks.
Key Takeaways
Heightened Regulatory Scrutiny: Classifying cartels as terrorist organizations will dramatically increase regulatory pressures on businesses with ties to Mexico, necessitating robust compliance strategies.
Increased Vigilance: Companies operating in financial services, agriculture, and logistics must implement enhanced vetting policies and procedures to account for changes.
Due Diligence Imperative: Updated enhanced due diligence procedures are critical across all regional business sectors to avoid reputational damage and possibly criminal prosecution.
Broader Implications for International Trade: This classification could further strain U.S.-Mexico relations and complicate trade logistics, requiring businesses to adapt swiftly and strategically.
For more insights, tune into Episode 41 of Riskology by Infortal.™
Resources:
Infortal Worldwide
Email
Dr. Ian Oxnevad on LinkedIn
Chris Mason on LinkedIn
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Riskology by Infortal™: Episode 40 - International Expansion: Conquering Risk with Special Guest Frank Lavin
For the milestone 40th episode of Riskology by Infortal™ co-hosts Dr. Ian Oxnevad and Chris Mason are thrilled to welcome Frank Lavin, a Visiting Fellow at Stanford University's Hoover Institution and a leading expert in international commerce.
This episode covers the challenges companies face when taking their business to new markets overseas.
Featured Guest: Frank Lavin
Frank Lavin works on Asia and trade policy as a Visiting Fellow at the Hoover Institution.
In the Reagan Administration, Lavin served on the National Security Council and the White House staff in addition to assignments in the State Department.
Lavin later served in the Bush (41) and Bush (43) administrations, in the latter as Ambassador to Singapore and Under Secretary for International Trade at the Department of Commerce.
In the private sector, Lavin served in senior finance positions in Hong Kong and Singapore with Bank of America and Citibank.
He is a columnist for Forbes.com and the author of several books, including “Inside the Reagan White House,” “The Smart Business Guide to China E-Commerce,” “Export Now,” and “Home Front to Battlefront.”
Key Takeaways:
Adopt a Light Footprint Strategy for International Expansion
Instead of replicating your US operations in a new market, you should consider starting with scaled-down capital investment by outsourcing services such as logistics and distribution.
Utilize All Available Resources and Networks
To facilitate international business expansion, leverage all available resources, including government agencies and private sector service providers. It may seem straightforward, but understanding the new market conditions before entering will strengthen your operating model and help you avoid significant risk.
Evaluate New Markets with a Risk-First Mindset
Rank potential foreign markets in terms of risk when deciding where to expand your business first. You may want to first consider lower-risk market entry points and build from there.
Tune in to the latest episode of Riskology by Infortal™ to gain a deeper understanding of how to approach international business expansion.
Read full show notes at Infortal Worldwide
Resources:
Infortal Worldwide
Email
Frank Lavin on LinkedIn
Dr. Ian Oxnevad on LinkedIn
Chris Mason on LinkedIn
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Riskology by Infortal™: Episode 39 - 2025 Top 10 Geopolitical Risks
In 2025, the geopolitical game is changing.
After over half the world voted in elections in 2024, we're on the brink of significant regulatory shifts that will impact businesses globally.
As we look at 2025, different administrations will clash, shaping a competitive landscape of rules and norms. This means compliance teams will be in high gear as companies must adapt to new regulatory demands.
In the first Riskology episode of 2025, hosts Dr. Ian Oxnevad and Chris Mason break down the top 10 geopolitical risks for companies to consider in 2025.
Global Conflicts - Understanding the overarching impact of global conflict on every aspect of business, from tariffs to supply chains.
U.S.-China Trade Wars - Analyzing the implications of trade tensions on global markets and supply chains.
Supply Chain Risk - Examining the evolving nature of supply chains amid geopolitical shifts and conflict.
Social Unrest and Terrorism - Evaluating the business implications of social movements and terrorism worldwide.
Cybersecurity Threats - Discussing the rise of state-backed cyber threats and the importance of robust cybersecurity measures.
Economic Espionage - Exploring the growing threat of economic espionage, highlighting the need for vigilance.
Shifting Regulatory Environment - Predicting the regulatory changes under new administrations worldwide and their effects on businesses.
AI Governance - Considering the various directions AI governance may take amid the international race to lead in AI technologies.
Environmental Risk - Highlighting the geopolitical impacts of environmental events on business operations and supply chains.
Global Migration - Discussing the complexities and economic impacts of migration trends influenced by global conflicts.
In 2025, global conflicts won’t just be featured in the headlines; they’ll impact us all, shaping migration patterns, market performance, and corporate strategies.
It's crucial to conduct contingency planning specific to your industry. Riskology by Infortal™ host, Chris Mason notes that, "...contingency planning for the larger financial institutions...involves stress testing, looking at things like liquidity and what your investment portfolio looks like." Contingency plans provide alternative strategies that prepare your business for potential disruptions caused by geopolitical risks, ensuring business continuity.
Companies should also focus on training their teams, especially in areas like cybersecurity and economic espionage. Ensuring that you provide training to your team, particularly at the board level, will place your firm in a stronger position to deal with emerging threats. Training also aids in quicker response times and empowers employees to identify and react to threats effectively.
Want to stay ahead of the geopolitical risk curve? Check out Riskology by Infortal™ Episode 39!
Resources:
Infortal Worldwide
Email
Dr. Ian Oxnevad on LinkedIn
Chris Mason on LinkedIn
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Riskology by Infortal: Episode 38 - 2024 Risk Highlights
The Growing Importance of Geopolitical Risk
In 2024, geopolitical risk has increasingly taken center stage in boardroom discussions. Companies are recognizing the complex interplay between global events and their business operations. Firms increasingly acknowledge the need to integrate geopolitical risk management into their corporate strategies and compliance programs.
Board members have also shown a growing interest in geopolitical risk, understanding that global events can have substantial knock-on effects on their operations. This shift is particularly vital given the recent impact of geopolitical events and conflicts worldwide.
By establishing dedicated teams and intelligence networks, firms are now better positioned to consider geopolitics in strategic decision-making and everyday operations. This shift in focus demonstrates that geopolitical risk management is no longer a niche concern but a critical element of corporate governance.
The Reality of Geopolitical Risk
Companies must be vigilant and adaptable, as geopolitical events directly affect global supply chains, market stability, and business continuity.
Establishing robust risk management frameworks that include geopolitical considerations is beneficial and necessary for navigating the current global risk landscape. The lessons learned in 2024 remind businesses to continuously update their risk assessments to reflect the ever-changing geopolitical environment.
Preparing for 2025 and Beyond
As we prepare for the economic and regulatory realities 2025, businesses must prioritize adaptability and foresight. Navigating this evolving landscape requires a proactive approach. As new geopolitical developments emerge, staying informed and prepared will be key to sustained success.
We hope you can join us for the latest episode of Riskology by Infortal.
Read full show notes at Infortal Worldwide
Resources:
Infortal Worldwide
Email
Dr. Ian Oxnevad on LinkedIn
Chris Mason on LinkedIn
Welcome to the Riskology podcast. Companies operating in today’s global economy really need to get an understanding of the international geopolitical risk landscape. At Infortal Worldwide we work with our clients on Solving Risk Before It Starts™. In this podcast series, Infortal founder and CEO Candice Tal and her team will explore how companies can mitigate risks to their business, employees, and assets while maximizing operational success.
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