Goldman Sachs Ventures into Geopolitical Advisory Business

Via Syndicated Feed

Summary: Goldman Sachs is stepping into the geopolitical advisory arena with the establishment of the Goldman Sachs Global Institute, focusing on the intricate web of geopolitics and technology. This endeavor reflects the growing appetite among companies for insights and guidance in navigating an increasingly turbulent global landscape. While Goldman faces stiff competition in this domain, their unique approach, which does not involve charging clients, and their commitment to staying at the forefront of geopolitical analysis could prove instrumental in helping businesses chart a course through uncertain times.

As per the latest media reports, Goldman Sachs is venturing into the realm of geopolitical analysis, establishing a new institute to delve into the intricate interplay of global politics and technology. This strategic expansion is in response to the growing demand from companies seeking guidance on how to navigate an increasingly chaotic world. Named the Goldman Sachs Global Institute, this initiative, unveiled just last Thursday, will initially set its sights on examining geopolitical tensions and the disruptive influence of artificial intelligence.
At the helm of this ambitious endeavor are two distinguished Goldman partners, George Lee and Jared Cohen. These two individuals also share leadership roles in the investment bank's Office of Applied Innovation, a unit founded just last year with the aim of identifying lucrative opportunities arising from shifts in technology and the geopolitical landscape. Jared Cohen, when speaking to the Financial Times, emphasized, "The goal here isn't to create another think-tank. The goal here is to create a machinery that leverages the firm's expertise, connects it with outside expertise, and combines those things into useful, actionable, and commercial insights for our clients."
The move by Goldman Sachs into the domain of geopolitical advisory services follows the shockwaves sent through the business world by Russia's full-scale invasion of Ukraine. This event caught a multitude of companies off-guard, highlighting the critical need for a deeper understanding of geopolitics. Nevertheless, Goldman Sachs is entering a field that is already quite crowded. Lazard, for instance, launched a unit dedicated to advising companies on geopolitical risks last year. The McKinsey Global Institute, an offshoot of the renowned management consulting firm McKinsey, as well as several other corporate research and analysis units, have been providing similar services for decades.
It's important to note that the Goldman Sachs Global Institute is a successor to the bank's Global Markets Institute, which was established back in 2004 to concentrate on the intersection between capital markets and public policy. According to Jared Cohen, "Clients are all asking the exact same questions, and those questions are persistent. What that tells me is they're not getting the answers that they want, that help them commercially navigate this."
One noteworthy aspect of Goldman's approach is their decision not to charge clients for access to the institute's resources. Instead, the institute will offer a blend of written analysis, as well as organize events and discussions to foster deeper engagement with clients. According to Cohen, the institute's primary objective is for Goldman to actively engage with its clients on the complex issues of geopolitics and technology, ultimately becoming more proficient in these areas.
As part of their preparations, Goldman has already conducted "tabletop simulations" to explore the potential consequences of various hypothetical scenarios. These simulations included examining the impact of tensions in the Taiwan Strait on the semiconductor industry, as well as the challenges associated with resolving the war in Ukraine and establishing a ceasefire.
Jared Cohen, who joined Goldman last year from Google and also serves as President of Global Affairs, revealed that his role involves daily communication with world leaders. He stated, "The feedback loops that we get from that type of interaction really, really inform a lot of our analysis." Cohen's rich background includes leading Jigsaw, a research and development unit at Google's parent company, Alphabet, as well as serving on the U.S. Secretary of State's Policy Planning Staff under both Condoleezza Rice and Hillary Clinton.
Notably, over the years, Goldman Sachs has earned the moniker "Government Sachs" due to the significant number of its employees with backgrounds in government service, or who later transition into government roles. This includes UK Prime Minister Rishi Sunak, former U.S. Treasury Secretary Hank Paulson, and former Australian Prime Minister Malcolm Turnbull.
IndraStra Global Staff has not edited this story, which is auto-generated from a syndicated feed.

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