In the first installment of our brand new series, Peter Bäckman, CSyP, AMBCI, CEO of TEDCAP explores how the alliance of BRICs nations could influence Latin American development.

In recent years, there has been a growing trend of BRICs alliances aligning with ideological groups in Latin America. BRICs stands for Brazil, Russia, India, China and South Africa. These countries, representing nearly half of the world’s population, have agreed to promote their mutual interests and increase their global influence. The BRICs alliance has also sought to challenge the dominance of Western powers, such as the US and Europe.

On the other hand, some ideological groups in Latin America share similar anti-Western sentiments and a desire for greater independence from traditional global powers. These groups have been seeking closer ties with BRICs nations, which they see as potential allies in their push for greater autonomy and sovereignty.

From a risk management standpoint, this alignment presents significant challenges for organizations operating in the region. The growing alliance between BRICs nations and ideological groups in Latin America can lead to increased political instability, which can impact business operations and investment opportunities. Additionally, the anti-Western sentiment promoted by these groups can lead to greater risks of cyber-attacks and intellectual property theft.

Despite these challenges, the alignment of BRICs and ideological groups in Latin America also presents opportunities for private and public organizations. The BRICs nations are among the fastest-growing economies in the world and their growing influence in Latin America can provide opportunities for investment and trade. Additionally, closer ties with these nations can help Latin American countries diversify their economies and reduce their dependence on traditional Western markets.

To navigate the risks and capitalize on the opportunities presented by this trend, organizations must adopt a comprehensive risk management strategy. This strategy should include a thorough assessment of the political and economic landscape in the region, as well as a plan to mitigate potential risks.

One key element of this strategy should be to build strong relationships with local stakeholders, including government officials, business leaders and civil society groups. By building trust and understanding with these stakeholders, organizations can better navigate political and social tensions and ensure that their operations are sustainable in the long run.

Another important element of the risk management strategy is to develop a comprehensive cybersecurity plan. This plan should include measures to protect against cyber-attacks, data breaches and intellectual property theft. Additionally, organizations should work closely with local authorities to ensure that their cybersecurity measures are in compliance with local laws and regulations.

In addition to the alignment of BRICs alliances with ideological groups in Latin America, there have also been proposals for greater economic integration in the region. One such proposal is the creation of a common currency for Latin America called the Sur, which was suggested by Argentina and Brazil in 2007 and again in 2022.

The creation of a common currency could potentially provide benefits for businesses operating in the region, such as reduced currency exchange costs and greater market stability. However, the proposal has also raised concerns about the potential risks and challenges associated with implementing a new currency.

From a risk and security management standpoint, the creation of a common currency would require a significant amount of co-ordination and co-operation between governments and central banks in the region. This would require a comprehensive risk management strategy that includes careful consideration of the potential economic and political implications of such a move.

While the proposal for a common currency is still in its early stages, it is an example of the increasing trend towards greater economic integration and co-operation in the region. As this trend continues, organizations operating in Latin America must stay vigilant and adopt comprehensive risk management strategies to ensure that they are well-positioned to navigate these complex and evolving landscapes.

Make sure to keep an eye out for the next installment of Latin America unveiled, coming next month!