Compliance and Security Fatigue: How to Build a Positive Security Culture

December 1, 2024

Two thoughtful business people with laptop, blue glowing information protection icons.

By Inge Wetzer and Nadine Hoogerwerf

Inge Wetzer, Social Psychologist in Cybersecurity & Compliance at Secura, and Nadine Hoogerwerf, Chief Information Security Officer at Zivver recently discussed the impact of compliance fatigue and shared actionable strategies for fostering a positive, security-conscious culture

Security Overload. That is what many employees (and some employers) are feeling as organisational data becomes more nuanced and complex in an increasingly data-driven workplace. According to Zivver’s Freedom to Focus report, 41% of employees identified excessive bureaucracy and process overload as major barriers to concentrating on their core responsibilities, with an additional 27% citing time-consuming security processes as a key hindrance. This information overload not only affects productivity but also undermines employees’ ability to effectively manage and respond to security threats, leaving organisations vulnerable in a fast-paced digital environment.  

It’s understandable. Compliance obligations and security responsibilities have grown dramatically in recent years, but in many cases, the tools and technologies designed to help employees cope with the information tsunami has failed to keep up. Today, even the most diligent workforce can experience “security fatigue,” where the sheer volume of policies, rules, regulations and reminders becomes too much to bear. This isn’t just a policy problem, a technology problem, or a compliance problem – it’s also a cultural problem.

Understanding Security Fatigue

Security fatigue has become a pressing concern as organisations seek to maintain compliance while managing an increasingly complex array of cybersecurity threats. As Inge explains, security fatigue occurs when employees feel overwhelmed by the constant demand to follow numerous security protocols, especially when these demands feel disconnected from their core roles. This sense of fatigue often stems from well-meaning but excessive training and policy requirements, which can lead to disengagement or even non-compliance. Wetzer emphasised that many organisations unknowingly push employees toward fatigue by prioritising quantity over quality in security education.  

Nadine added that, in some cases, security fatigue can create a false sense of complacency, where employees no longer view protocols as essential and may underestimate their importance. This disengagement makes organisations more vulnerable, as employees are less likely to fully engage with cybersecurity measures. Both speakers agreed that a more thoughtful, risk-based approach is needed—one that considers employees’ actual day-to-day responsibilities and avoids overwhelming them with non-essential compliance tasks. By focusing on clear, relevant guidance, organisations can help reduce fatigue and foster a more active commitment to secure practices.

Compliance Overload – A Precursor to Fatigue?

To combat security fatigue effectively, organisations must find a balance between essential security protocols and manageable compliance practices. Nadine noted that many organisations adopt a blanket approach, adding layers of rules and training to cover every potential threat. However, this can lead to an overload of requirements that employees struggle to follow, particularly when the rules feel unrelated to their specific roles. She suggested that a risk-based approach—prioritising measures based on relevance and impact—can make compliance efforts more effective and reduce unnecessary demands on employees.  

Inge supported this perspective, pointing out that aligning security measures with real, identifiable risks helps employees see the value in following protocols. She explained that when organisations focus only on high-impact areas and eliminate redundant requirements, employees are more likely to feel that security practices genuinely support their work. This approach not only reduces compliance fatigue but also strengthens adherence, as employees understand that the measures are practical and purposeful.

Motivation Meets Practicality

Engaging employees in cybersecurity requires more than just instructing them to follow protocols; it requires a focus on motivation and relevance. Inge highlighted that people are more likely to adopt secure behaviours if they understand how these practices connect to their own roles and responsibilities. She pointed out that many organisations overlook this motivational element, defaulting to repetitive training that focuses on rules rather than purpose. Instead, Inge suggested using relatable scenarios and real-life examples to help employees see how cybersecurity affects their daily work and the organisation’s overall safety.

Nadine added that simplifying security measures is equally important. Overly complex policies can lead to confusion or unintentional non-compliance, as employees may struggle to understand what’s expected of them. She recommended making instructions as clear and direct as possible, ideally delivering guidance just-in-time, so that employees receive relevant training when they actually need it. This approach not only reduces the cognitive load on employees but also reinforces secure practices as a natural part of their work, rather than a disruptive add-on.

A Behavioural Psychology Perspective

From a psychological perspective, Inge explained that secure behaviour really relies on three key factors: knowledge, motivation, and opportunity. While training can address knowledge gaps, it doesn’t always translate into action if employees lack the motivation to apply what they’ve learned. Inge suggested that organisations should assess employees’ existing knowledge levels and, where appropriate, shift focus from mere instruction to motivational techniques that help individuals see the importance of security in their specific roles. Opportunity, the final point, means ensuring that employees have the resources and support to comply, from user-friendly tools to a supportive security culture. Without the right opportunities, even motivated employees may find secure practices hard to maintain. By addressing all three components, Inge argued, organisations can create a stronger foundation for lasting behaviour change and resilience against cyber threats.

Supporting Technologies

While behaviours around security are very much a human issue, technology can play a powerful role in helping to shape and nurture those behaviours. Nadine discussed how tools like phishing detectors, password managers, and automated encryption systems can help prevent human errors by adding a protective layer that doesn’t require constant vigilance from employees. She emphasised that while these tools are critical, they must be user-friendly. Complex or intrusive software can frustrate users and lead to workarounds, undermining security goals. Nadine advised that any security tool introduced to support compliance should integrate smoothly with employees’ regular workflows, ensuring that security is embedded seamlessly into daily tasks.  

Inge added that when technology is designed with the user experience in mind, it not only improves compliance but can also foster a more positive attitude towards cybersecurity. She suggested that interactive demos and training sessions could be provided to boost employees’ confidence in using new security tools, especially for those who may feel intimidated by technology. By giving employees practical, hands-on experience, organisations can alleviate concerns, reinforce good habits, and make secure practices feel like an accessible, integral part of their work environment rather than an added burden.

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About the Authors

Inge Wetzer is a social psychologist specialising in cybersecurity and compliance at Secura. With a PhD in social psychology, she focuses on human behaviour in cybersecurity, designing programmes to enhance security awareness and foster positive organisational change.

Nadine Hoogerwerf is the Chief Information Security Officer (CISO) at Zivver. With extensive experience in tech scale-ups and companies like Capgemini, she leads the company’s security and compliance efforts, ensuring the protection of sensitive information and regulatory adherence.

Pacific Small-Island States as Part of “the Others”: A Microcosmic Exhibition and Reflection of the World

December 1, 2024

By John Louis B. Benito, LPT MA

If one would take reading international affairs as a pleasurable endeavor, the emphasis would understandably be on the armed conflicts being “main headliners” such as the Russia-Ukraine War¹ or the conflict occurring between Israel and the Iran’s proxies such as Hezbollah and Hamas.² Observing keenly, the patterns of these armed conflicts are merely the manifestations of states pursuing their strategic interests but at the expense of other states and non-state actors, as well as individuals. They can be indirectly implicated, as these events have their geopolitical implications not only for the region in which they are occurring but also for other states involved and other actors connected through various multilateral relations and trade. More undesirable would be if their conditions lead to the suffering, horrible experiences, and lack of security for civilians caught up in the middle. Unfortunately, they are often considered as an afterthought to the high politics discussion of war. Furthermore, on the sidelines, media and think tanks would invite subject experts, analysts and political pundits to relay their various interpretations on the causes of such occurrences and what lies ahead. The discussions may turn toward policy making that represent biases for a certain cause or ideology. This would likely result in an optimistic and well-crafted framework only to be translated differently or distorted as facts on the ground. There would still be a struggle to be the dominant power amongst though who would aim to do so. Wars would continue as if we were all condemned to experience all of it.

Looking then at the big picture, there lies this pattern in international relations that is silently disturbing. It is quiet in a sense that no one would bat an eye for it: the act of neglect. How does this neglect manifest? Despite the opening of institutions and regimes that made way for other logics in explaining the contemporary world, it seems that there is a triumph of realism in the atmosphere. The material world it claims to render its presumptions for, seemingly proves it right as powerful states with all their military might can easily pursue their strategic interests compared to other states. Wars and conflicts of varying degrees persists, providing no significant room for human security and sustainable development to be the prevailing international norm and policy.

This is an anarchic system detrimental for the relevance of what I call “the others”. These “others” are the ones who are essentially neglected and must rely to the powerful states upon the rise of conflicts, or any action related to its preparations. Their circumstances would logically call for more fixation with their economy and development over their armed forces and defense. In the study and discussion of international events, they can unfortunately be casted as footnotes or sideshows away from the main event. It may be suggested that this is simply the nature of international relations. For now, this belief has a solid case to stand by. But given these circumstances, what’s in it, therefore, for “the others”? How can this reality affect and reflect the whole world in the long run? How will they achieve their strategic interests or even just a basic assurance of security? The answers for these questions are complicated but needs to be done.

One of the collectives that belong to “the others” are the small-island states in the Pacific. They fit in this category, as not all would have an idea who are the people in these countries let alone their history and cultural identity. Development issues are more pressing here compared to military matters. Media, particularly in the West that dominates the discussion on foreign affairs, do not prioritize them that much except probably in the context of them being involved with international organizations like the UN³ or being a part of treaties involving a great power.⁴⁵ Their experiences exhibit how “the others” were before and are right now. They can also reflect how “the others” can render implications for the international system in the future. These island nations, taken for granted as undiscernible dots in maps across a vast ocean, can show us in its microcosmic means, what is in it for a world where they are neglected.

A Passing Fancy

History would suggest that the ancestors of the people from these small-island states are masters of explorations by way of the ocean.⁶ As the western empires and states later explored and extended their colonies and territories, the same ocean the Pacific islanders mastered became the open canvas in which they drew their preferred images of power and influence.⁷ Currently, the islanders have co-existed with the standing bastions of the foreign seen through their territories and military bases. Some of these are France’s New Caledonia⁸ and Guam in which the US houses a naval base.⁹ In terms of the economy on the other hand, these small-island states are also vulnerable to economic hardships due to being prone to natural disasters.¹⁰

Furthermore, certain specific events about these island nations exhibit their standing in international relations. One would be the case of Nauru with their sudden rise and fall involving guano.¹¹The country became one of the richest in the world at some point but was not able to sustain it due to a significant diminishing of supply of the said natural resource. Another would be Castle Bravo in which the US conducted nuclear testing in Bikini Atoll.¹² This resulted in dire social and environmental consequences for the locals. Meanwhile just a few days ago, an election in Palau highlighted the presence of a US military base and its implications for the security of the former. As the US’s geopolitical rival, China is also involved in an allegation of undercutting Palau due to its diplomatic ties with Taiwan.¹³

These points at hand provide the grounds for a pessimistic inference. From here, it can be reasoned out from their history and contemporary examples of their global involvement that these small-island states in the Pacific are a passing fancy for the other powers and developed states dominating the international system. Having an insignificant human and natural resource to show or utilize, the root of its tangible value is ironically taken from this insignificance. Insignificance translates to open ventures for bigger powers to use them for geopolitical purposes. Consequently, insignificance can also mean an ease in neglecting these states if they have no longer utility. Worse, if these powers entered a conflict with one another catching these small-island states in the middle, the latter may have no choice but to commit to equibalancing approaches if not asking one of them to be a security ally. Their security, having no capability to pursue it unilaterally, hangs by the thread every time they rely for assistance. This is the fate of the small-island states in the Pacific being a part of “the others”. But this is not the only plight that these undergo. Unfortunately, their micro illustration of the others’ experiences presents a situation unique to them: they are sinking fast literally.

Crushing Under the Blue Elephant’s Steps

It turns out that these small-island states must deal with another big occurrence aside from their relations with powerful states and economically well-off ones. The environment, unlike states, knows no politics. It only becomes political upon its entry to policy discussions by various actors. Even so, its manifestations are felt on the planet as its whole domain is more than any political delineations we may construct within. Climate change affects every state especially those with coastal areas through rising water levels. But its devastation is more evident in these Pacific small-island states of the Pacific. They are sinking with no realistic optimism that their entire countries, their literal sands and soils, would still be above water and habitable in the future. The issue is so desperate that the rising waters became the background, literally and figuratively, for the speech of Tuvalu’s foreign minister during COP26.¹⁴

Pointing out the science behind, NASA’s Sea Level Change Science Team that the sea level rise will affect countries such as Tuvalu, Kiribati, and Fiji.¹⁵ Because of this, various international discussions and agreements facilitated by the likes of the UN¹⁶ and Australia do exist. One of these agreements was the Falepili Union Treaty between Australia and Tuvalu.¹⁷ Being the nearest developed country aside from New Zealand, the agreement essentially planned for Australia to accept relocated people from Tuvalu incase environmental existential threats continues to manifest for the latter. The effectivity of its enactment is still to be observed as it only came to force months ago.

One may then argue that these small island-states are receiving help through nearby developed states and are not in total shambles. However, the whole world does not only consist of all the states across the Pacific Ocean. This is an important fact to emphasize especially on environmental concerns like climate change. The international community should be involved even those that are far from these small-island states. Whether there would be an aggregate significant approach is questionable owing to the agenda we are focusing right now, especially the powerful ones.

The plight of these small-island nations, however small and one of a kind it may be, simply exhibits what lies ahead for the rest. The problem is we tend to ignore these Pacific nations as we disregard their environmental problems while being oblivious to the fact that the uniqueness of their situation is just a specific indicator of a larger problem that directly involves us. In a world that looks like a place where states only care for relative gains and all other approaches for cooperation remains only in black and white, the dots across the Pacific will depressingly be nothing but a stain in a broad canvass.

To some extent, this phenomenon raises questions about the future of these states. What would a state be without a physical existing territory? How about the people that have recognized these islands as home? What would happen to their culture, heritage, and ancestry? If they would seek refuge, how would they be treated in their host’s country? Like a true “other”, a historic shift for these people may not matter in the grand scheme of things. But if one would analyze, their worsening situation is also the reality for the rest of the world. Climate change that exacerbates forced migration continues to be observed in various continents and regions like in Africa.¹⁸ This may continue as there are no indicators that global warming is generally easing. Moreover, states like Bangladesh, having vulnerable coastal areas, may lose some of it due to rising sea levels.¹⁹ The people in these locations are at risk to be like the Pacific islanders one way or another by the need to move or the need of an aid.

But what exactly do these occurrences have to do with the powerful states and even the states considered as economic powerhouses? They are essentially those residences at the top of the hill in which “the others” would try to reach and ask for help. As of now in general, the doors are not fully open. The EU, with all the well-off Western European states it has, have fortified their borders as a response to irregular migration coming from places like Western Africa.²⁰ In addition, the US have also a heavily secured border with Mexico to ward off undesirable migrants.²¹ In a sense, they have steered away from directly heeding the calls for help. Even as they may throw aid and ratify treaties here and there, climate change continues as there is no effective and long-term solution provided. Most, if not all powerful and developed states, are heavily focused on pursuing their own intentions in the international arena with no substantial regard for sustainability.

A Friendly Reminder: Deal Not with Magnitude

Probably by now, you may think that this article could have just focused on any of “the others”. You may be right by reasoning that another case could lead to almost the same inferences or conclusions. However, the case of the Pacific small-island states amongst “the others” perfectly captures the international community’s sick habit of focusing on numbers, wealth, and size as an indicator of magnitude or significance. If a state would at least have one of these, it is a significant part of international affairs and policy making for better or worse. Sadly, all of these are not present to the Pacific small-island states, especially the first one pertaining to their population. They are the most legitimate pawns in the political game of chess used as a sacrifice or a puppet, can easily be used and discarded, not that much significant value to be assisted upon, and no chance to reach the end of the board for a promotion. The world tends to react only if an issue becomes a large-scale crisis especially if it comes knocking on their borders. But even in these circumstances, a favorable response for “the others” is unsure as shown in the case of the EU and US. These small-island nations are far away from other countries, current events, and armed conflicts to be given significant attention. If these states hypothetically sink right now, I bet the international community would not even quickly notice it happened.

Yet, here the Pacific islanders remain illustrating what is happening, what is to come, and what is wrong with all of us. Only if a significant number of collectives, especially powerful actors, would bat an eye. If we are to consider the international system as a machinery, the small and insignificant gears are still part of its functioning. An abnormality in its rotation may show symptoms or signs that may spread and be seen inside the whole machine and destroy it. The case of the Pacific small-island states perfectly showcases this “small but terrible” metaphor. Indeed, a perfect ambassador representing “the others” and possibly a perfect hermit coming from an isolated place far away warning us of our follies and impending doom.

How do we deal then with “the others” that includes these Pacific small-island states, if not through magnitude? Such question, I believe, is something for the powerful states and developed countries to ponder on. The question is also a moral one, something that a realist would disregard for its intangibility and something that a pragmatist would not necessarily put in a pedestal. We must proceed to being inclusive for these “others”. We must ensure that all actors in all sectors, may it be economic, financial, socio-cultural, or political, are involved. A framework that not only focuses on climate relocations²² but on giving them a chance to thrive where they belong and where they want to be.

Actions can still be provided. I believe the next step no longer relies only on the theoretical but heavily on the practical as well. Political will amongst state actors, especially the powerful ones, is needed. A will that explicitly emphasize sustainable development as well as human security. If we are to dissect further the insignificance that ironically provides their value, it just focuses on their territory with its use for their strategic purposes and not on the people directly. But this goes with another pressing reality that most of the problems experienced by these small-island states are directly affecting their population. An emphasis towards sustainability and human security would call for the reversal of the effects of global warming and climate change. If it would come into fruition, it would alleviate the negative situation of the people living in those states, specifically the sinking of their land.

We should also be aware of current international trends that will be factors towards this endeavor. The return of Donald Trump as the leader of the most powerful country in the world,²³ the continuous challenge to the hegemony of the US by other powerful states, the rise of right-wing politics and their social influence, as well as the conditions of international organizations as the standard bearer of liberalism are some of the things we need to ponder on in terms of their implications on dealing with “the others” appropriately. Furthermore, we should also be observant with the domestic and foreign affairs of powerful and developed states. Whatever occurs in their formulation and pursuit of foreign policy would have an effect for the small, developing, and least developed ones. Call me a daydreamer, but they hopefully disprove the logic of the realists about our world if we are to stand for “the others” and the Pacific small-island states.

This overall, is the explanation and lesson the small-island states in the Pacific provide to us. They exhibit a disaster that not only them and their fellow “others” are bound to suffer under but the whole world as well. At the same time, it also shows how the international community deals with the downtrodden and its habit of focusing on magnitudes. In the end, the small things are essentially the big things. And how we treat these far-flung neighbors of ours across the Pacific Ocean would spell our future together.

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About the Author

John Louis B. Benito, LPT, MA is a lecturer at the Department of International Studies of De La Salle University in Manila, Philippines. He earned his MA degree in International Studies, major in European Studies from the same university. His research interests and publications include International Migration, Critical Security, and Sustainable Development. He aims to contribute knowledge and directions in the academe and policy making circles about international relations and international affairs well into the future.

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Influencing Elections Overnight Through Tiktok: Let’s Test the Power of the Digital Services Act?

December 1, 2024

Closed up image of a Female using TikTok application

By Denisa Avram

The recent election results in Romania have shocked the political scene. Călin Georgescu, a political outsider until recently but a name sporadically mentioned in Romanian politics, managed to secure victory through an unexpected and largely overlooked campaign predominantly conducted on TikTok. However, his success raises alarming questions about mass influence, electoral interference, and insufficient regulation of digital platforms.

Is this the new formula for becoming Head of State? Can one become President overnight through TikTok? Is there a legal framework to investigate what happened and identify who financed the online campaign? Could the European Commission and Romania Digital Services Coordinator, namely the National Authority for Management and Regulation in Communications (ANCOM), pursue a deeper investigation?

TikTok can help you become President overnight

Călin Georgescu leveraged TikTok in an unprecedented way for presidential elections, turning the platform into a highly effective electoral propaganda tool in a remarkably short time. His content, launched primarily in October, consisted of short, emotional videos with nationalist messages that quickly captivated audiences. TikTok’s algorithms are designed to maximize user engagement by prioritizing content that evokes strong emotions such as anger, pride, or fear—emotions easily exploited in political contexts. Georgescu’s campaign capitalized on these vulnerabilities, generating a near-hypnotic wave of support that garnered over two million voters.

Unlike other candidates, Georgescu had little public presence outside TikTok, yet he managed to overtake the content on the platform. His campaign was bolstered by networks of micro-influencers, many of them paid, and anonymous accounts that aggressively shared pro-Georgescu messages while attacking his political opponents with disinformation. For instance, videos falsely claimed that other candidates were puppets of foreign interests.

Even more concerning, subsequent investigations revealed potential involvement by external actors amplifying this propaganda. Bots and accounts coordinated from outside Romania contributed to the promotion of his messages, suggesting electoral interference. The question remains: do we have the tools to trace these activities?

Additionally, many videos featured misleading or outright false information, presented in accessible and oversimplified formats. For example, Georgescu was portrayed as the “savior leader” of Romania, while his opponents were vilified through conspiracy theories. The cumulative effect was extreme polarization and massive mobilization among his electorate.

Let’s see if the Digital Services Act can provide some answers?

The European Union recently adopted the Digital Services Act (DSA), legislation aimed at combating disinformation, regulating online content, and ensuring algorithmic transparency on digital platforms. In theory, the DSA provides robust tools to prevent such abuses:

Algorithmic transparency: Platforms like TikTok are required to disclose how their algorithms function and allow external audits.
Reporting of illegal Content: Governments can request the rapid removal of disinformation or content that violates electoral laws.
Platform accountability: TikTok could face financial penalties for failing to prevent the spread of false or manipulative content.
Systemic risk prevention: TikTok is obligated to conduct periodic evaluations of systemic risks associated with the platform, such as the spread of disinformation or electoral interference. In the Romanian context, the platform could be investigated for negligence in identifying risks linked to the dissemination of manipulative content.
Cooperation with national authorities: The DSA mandates platforms to cooperate with member state authorities regarding the removal of illegal content. Electoral authorities in Romania could invoke the DSA to request the removal of disinformation videos and explanations regarding their origins.
Transparency in political advertising: Platforms must provide clear information about political ads, including their funding sources and purposes. If videos widely distributed on TikTok were funded by external actors or opaque networks, TikTok could face sanctions. TikTok maintains an ad library, for instance, where all sponsored content can be accessed.
Illegal content dissemination: Electoral disinformation may qualify as illegal content under Romanian law. TikTok should have taken prompt action to remove such materials.

Challenges in Implementation

Although the DSA offers a robust framework, its implementation is still in its early stages, and Romania has proven vulnerable to such campaigns before the regulations became fully operational. TikTok, for example, maintains an ad library where all sponsored content should be accessible. Yet, in this case, the clarity and transparency of sponsorships remain questionable (example).

The DSA also allows the European Commission to impose sanctions on platforms failing to meet their obligations, with fines of up to 6% of their global revenue. Romanian authorities can refer cases to the Commission for formal investigation in collaboration with Digital Services Coordinators (DSC), such as ANCOM in Romania. ANCOM could request details about the financial backers and accounts used to fund political ads, leveraging TikTok’s ad library as a starting point.

While the DSA does not directly address foreign electoral interference, it provides a basis for investigating bot networks or coordinated fake accounts operating from outside the EU. Romania can also collaborate with the EU Cybersecurity Agency (ENISA) to identify and counter such threats.

Additionally, TikTok is a signatory of the EU Code of Practice on Disinformation, which sets voluntary measures to combat disinformation. EU authorities could examine whether TikTok adhered to its commitments under this code.

What’s Next for Romania and the EU?

Călin Georgescu’s victory demonstrates the susceptibility of European democracies to digital manipulation. Romania must urgently modernize its electoral legislation to address technological threats, while the EU must rigorously enforce the DSA and work closely with member states to safeguard election integrity.

Public education on digital literacy is equally crucial. Voters must understand how digital platforms operate and how they can be manipulated. Only through a combination of regulation, education, and vigilance can Europe mitigate the devastating effects of disinformation on platforms like TikTok.

Romania’s case should serve as a wake-up call for the entire European Union. While technology offers immense opportunities, without adequate regulation, it can become a dangerous weapon against democracy.

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About the Author

Denisa Avram is an affiliate expert for Europuls – Center of European Expertise, public policy analyst and political communication expert, specialized in technological regulation, digital security and combating disinformation. With a career in European public affairs, Denisa previously worked for various technology companies such as Glovo or eBay. Her articles, published in leading European publications, address topics such as the influence of digital platforms, algorithmic transparency and the role of the European Union in technology regulation. Denisa frequently collaborates with experts in cyber security and European legislation, providing detailed analysis on contemporary challenges in the digital space.

She graduated with a BA in European Studies as well as a MA in Public Affairs at Maastricht University. He then continued his academic career with an Advanced Master’s in International Relations and Diplomacy at the College of Europe in Bruges, Belgium.

Denisa is passionate about digital education and supports initiatives that promote media literacy and responsible online platforms. Through her work, Denisa aims to raise public awareness and help strengthen democracy in the technological age.

The Impact of Geopolitical Tensions on International Corporate Law

December 1, 2024

By Friedrich Helml and Julia Helml

In recent years, the increasing influence of geopolitical tensions on global business operations has become undeniable. From sanctions to supply chain disruptions, international corporate law is evolving to meet the challenges posed by shifting political landscapes. Companies are no longer just concerned with navigating the complexities of business regulations—they must also account for the economic and legal consequences of global conflicts. The escalating tensions between the U.S. and China, as well as the ongoing Russia-Ukraine conflict, highlight how geopolitical risks can swiftly impact international commerce, trade, and investment.

One of the key mechanisms through which geopolitical forces influence corporate law is the use of economic sanctions and trade restrictions. These legal tools, designed to exert political pressure on specific nations or entities, have far-reaching effects on multinational companies. Sanctions targeting Russia, for instance, have created ripple effects across Europe and beyond, forcing businesses to reconsider their dealings in the region. Companies that fail to comply with sanctions or navigate these changes effectively risk significant reputational and financial damage. Legal teams are now tasked with not only ensuring compliance with sanctions but also managing the reputational risks of operating in politically unstable areas.

Beyond sanctions, geopolitical tensions also create logistical and legal complications for businesses operating in conflict zones or politically unstable regions. Traditional legal systems, such as courts, may become unreliable in war-torn areas, prompting businesses to seek alternative dispute resolution mechanisms like arbitration. However, even arbitration can be politically charged, and, in any event, any judgement or arbitral award must also be enforced in countries or regions affected by geopolitical tensions. The need for agility in such environments has never been more apparent, as companies must remain flexible to adjust to rapidly changing legal and political circumstances.

Another prominent example of geopolitical tension shaping corporate strategy is the ongoing U.S.-China rivalry. With both economic and political friction between these two global powers, businesses are increasingly caught in the middle. U.S. export controls, which limit the sale of American technology to Chinese firms, add layers of complexity to cross-border transactions. Similarly, China’s data localization laws, which require foreign companies to store data domestically, challenge businesses to reconcile competing legal frameworks. Companies must constantly balance these conflicting regulations, ensuring they remain compliant while protecting their global operations.

Geopolitical tensions not only influence operational and legal strategies but also corporate governance. Corporate boards must now incorporate geopolitical risk management into their broader risk assessment frameworks. This goes beyond traditional financial or operational risk analysis and requires legal teams to be fully engaged in identifying potential geopolitical vulnerabilities. Some companies have begun appointing specialized geopolitical risk committees or hiring chief geopolitical strategists to navigate these complexities. These experts provide valuable insights into how political decisions can influence business environments and legal frameworks, helping businesses anticipate potential risks.

In response to the challenges posed by geopolitical risks, many companies are reevaluating their supply chains and market diversification strategies. By expanding operations across multiple regions, businesses can reduce their exposure to geopolitical turmoil in any one area. Diversifying supply chains has become a critical strategy for maintaining operational flexibility and avoiding the disruptions that result from sanctions, trade barriers, or political unrest.

Another legal strategy that has proven effective in managing geopolitical risk is the inclusion of flexible contract provisions, such as force majeure and exit clauses. These provisions allow businesses to suspend or terminate contracts in the event of unforeseen political events, such as sanctions or military conflicts. Force majeure clauses, in particular, have been critical in enabling companies to adjust their obligations when geopolitical events render the fulfillment of contracts impossible or impractical.

Corporate law is also adapting to the new realities of “weaponized interdependence,” a concept where countries use their control over global economic networks as a form of political leverage. For example, the U.S. leverages its control over the SWIFT financial messaging system to enforce sanctions, while China wields its dominance in global supply chains to exert influence over foreign businesses. Companies operating in these economic networks must be acutely aware of how geopolitical actors may manipulate the system to achieve their political goals.

As the landscape of international business becomes increasingly shaped by geopolitical forces, corporate law must continue to evolve to address these emerging challenges. Legal frameworks that once relied on global institutions such as the World Trade Organization (WTO) are being supplanted by bilateral agreements, sanctions regimes, and new forms of economic competition between states. Businesses must now adapt their operations to reflect this reality, ensuring that their legal strategies are flexible, forward-looking, and aligned with the evolving geopolitical environment.

In this context, legal advisors play an essential role in guiding companies through the intricacies of geopolitics. Legal teams must stay informed of developments, help businesses navigate complex regulatory landscapes, and advise on risk mitigation strategies. In an era where political instability can severely disrupt global operations, having a legal framework that is both adaptable and comprehensive is key to ensuring long-term business continuity.

Geopolitical tensions are not going away anytime soon. For companies operating on a global scale, incorporating geopolitical risk management into corporate governance and legal strategies is no longer optional—it is essential. As businesses continue to confront an increasingly fragmented and politicized global market, legal advisors must provide the expertise and tools necessary to safeguard business operations and ensure resilience in the face of evolving geopolitical threats.

In conclusion, the future of international corporate law will be shaped by the continued influence of geopolitical tensions. As countries increasingly use economic tools to further their political objectives, businesses must adapt their legal and operational strategies to navigate the complexities of this new environment. Only by staying ahead of these challenges can companies ensure they are well-positioned to succeed in the global marketplace.

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About the Authors

Friedrich Helml PhD, holds an LL.M. in international law from Duke University. After seven years managing international litigation, arbitration, real estate, and M&A transactions in Vienna, he founded Aliant Helml Rechtsanwälte GmbH in 2014. As Senior Partner, he oversees its offices in Vienna and Linz.

Julia Helml, LL.M., studied in Vienna and California, earning her second LL.M. in U.S. law from Santa Clara University in 2011. An expert in transactional and corporate law, she’s recognized by Chambers for her ability to translate business ideas into legal solutions, advising on high-value transactions and international arbitrations.

Ways to Build Trust with Non-Family Employees in Family-Owned Companies

December 1, 2024

By Alfredo De Massis and Emanuela Rondi

Building trust in family-owned companies involves overcoming challenges from overlapping family and business dynamics. Non-family employees often face a “glass ceiling” due to perceived favoritism and limited career growth. Strategies like transparency, inclusivity, fairness, and leading by example help foster a supportive environment where all employees feel valued and motivated in the family firm.

Trust is the cornerstone of any successful organization, fostering a cohesive and high-performing workplace. In family-owned companies, building trust presents unique and complex challenges. The overlap of family dynamics with business operations creates both opportunities and obstacles. On one hand, the involvement of family members often fosters long-term relationships and stability, with family members and long-tenured employees contributing to low turnover and continuity. In fact, in a family firm, employees are frequently viewed as part of an extended family, fostering a culture where personal relationships are valued. On the other hand, non-family employees may encounter a “glass ceiling,” where their career advancement is perceived to be capped by familial succession plans and favoritism. This perception of nepotism, coupled with a lack of inclusiveness and transparency in decision-making, can lead to feelings of alienation and erode trust. Addressing these concerns is essential to creating an equitable organizational climate where all employees feel valued and supported. Here are actionable strategies for family-owned businesses to build trust with their non-family employees.

1. Transparency

Openly sharing business goals and clearly defining family members’ roles prevents perceptions of favoritism. When employees understand the business’ direction and see that family involvement is balanced with meritocracy and professional qualifications, it reinforces a sense of fairness. Regular team meetings and open communication create opportunities for non-family employees to voice concerns and feel included, fostering a culture of mutual respect and engagement. Transparency also extends to clear performance expectations, evaluation criteria, and career advancement opportunities, which help eliminate uncertainties and build trust.

2. Inclusivity

Employees outside the family often feel overlooked for leadership roles or excluded from strategic decisions. Addressing this requires deliberate actions to create a more inclusive environment. Appointing non-family executives or creating advisory boards with a mix of family and non-family members sends a powerful message about valuing diverse perspectives and relying on independent perspectives. Equally important is offering clear career progression opportunities to all employees, accompanied by merit-based appraisals and professional development programs. When non-family employees see that their contributions are recognized and rewarded equitably, they are more likely to develop a sense of loyalty and trust.

3. Fairness and consistency

Family businesses must ensure that rules governing work hours, benefits, and performance expectations apply uniformly to all employees, regardless of their familial ties. This fairness extends to conflict resolution, where impartial mechanisms should be in place to address disputes. By demonstrating that favoritism has no place in the organization, family-owned businesses can cultivate a culture of trust and mutual respect.

4. Purpose

Communicating the family’s long-term vision and values is a powerful way to build trust with non-family employees. When the family purpose is articulated clearly, employees are better able to understand the “why” behind the business’s goals, helping them align their efforts with the overarching mission. This alignment fosters a deeper sense of belonging and commitment, as employees can see how their contributions directly impact the success of the family enterprise. One key outcome of sharing the family’s purpose is the development of “psychological ownership” among non-family employees, arising when employees start identifying with the business mission, values, and long-term goals, ultimately viewing themselves as integral to the organization, even without any formal ownership stake. When employees feel a sense of ownership, they are more engaged, motivated, and willing to go the extra mile for the success of the business. This shared sense of purpose bridges the gap between family and non-family members, creating a united workforce committed to a common vision.

5. Positive workplace culture.

Leaders in family businesses must try to engage with non-family employees on a personal level, showing genuine interest in their goals and well-being. Team-building activities and collaborative projects that include both family and non-family employees can bridge gaps and foster mutual respect. Moreover, prioritizing job security and stability by sharing clear succession plans and demonstrating financial transparency can alleviate concerns about the future. By communicating and reinforcing the family’s values and long-term objectives, family businesses can cultivate a supportive and motivated work culture where trust and loyalty flourish.

6. Leading by example.

Actions speak louder than words, and for non-family employees, seeing family members uphold the principles they advocate is crucial in building credibility. When leaders demonstrate consistency between what they say and what they do, it signals a deep commitment to shared values, helping to foster a culture of accountability. Treating all employees with equal respect, regardless of family ties, sets a standard that everyone can follow.

Integrity in leadership means being honest and transparent, particularly in difficult situations. Acknowledging mistakes openly, addressing issues head-on, and making ethical decisions, even when challenging, reinforces trust. Humility also plays a key role—family leaders who are approachable, willing to listen, and open to feedback create an environment where employees feel valued and empowered. This willingness to learn and adapt sends a strong message that the organization prioritizes collaboration over hierarchy.

By leading with humility, fairness, and integrity, family leaders can bridge the gap between family and non-family members, ultimately fostering a positive and inclusive work environment. Such an environment motivates employees, strengthens loyalty, and drives collective success.

Conclusion

Building trust with non-family employees in family-owned businesses requires intentionality and effort. By fostering these six key dimensions, family businesses can create an environment where all employees—regardless of familial ties—feel valued, respected, and motivated to contribute to the company’s success. When trust becomes the foundation, family-owned businesses can harness the full potential of their diverse workforce, driving innovation and sustaining their legacy for generations to come.

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About the Authors

Alfredo De Massis is a Professor of Entrepreneurship & Family Business at the D’Annunzio University of Chieti-Pescara and IMD Business School, who serves as adviser to entrepreneurial families and policy makers.

Emanuela Rondi is Associate Professor at the Department of Management at the Università degli Studi di Bergamo (Italy). After graduating in Management Engineering, she got her PhD on Family Business Management from Lancaster University Management School (UK).

Alfredo De Massis and Emanuela Rondi are co-authors of The Family Business Book: A roadmap for entrepreneurial families to prosper across generations  out now, published by FT Publishing

Global Handcraft Artists Gather for Saudi Arabia’s Leading Exhibition

December 1, 2024

Banan, Saudi Arabia’s International Handcrafts Week, is back for its second edition, turning Riyadh’s Roshn Front into a hub for international craftsmanship. The event, which brings together over 500 artisans from 25 countries, is set to run until November 29. It serves as a testament to the Kingdom’s ongoing efforts to preserve traditional craftsmanship while encouraging global cultural exchange. The exhibition, featuring a wide variety of stunning works, from textiles to woodcraft, has turned Riyadh into an energetic celebration of global artistry.

Visitors are welcomed by a stunning collection of unique pavilions, each offering an authentic glimpse into the cultural heritage of its respective nation. China’s presence is particularly notable, with five dedicated pavilions showcasing its long-standing craftsmanship traditions, including intricate textiles, embroidery, and finely crafted artefacts that span thousands of years of artistic history.

Live demonstrations bring the crafts to life, with artisans from Greece and Mexico sharing their time-honoured techniques. Greek craftsmen display their skill in metalwork and traditional textile creation, while Mexican artisans showcase indigenous techniques, such as intricate weaving and pottery-making, offering visitors a hands-on experience of these ancient arts.

The Middle East is also well represented, with Oman and Jordan offering rich, culturally significant exhibits. Omani artisans exhibit their famed silverwork, traditional textiles, and distinctive pottery, while Jordanian craftspeople captivate audiences with their masterful woodcarving, weaving, and intricate embroidery, all of which weave narratives of the region’s deep cultural roots.

A key feature of the exhibition is the contribution of the Royal Institute of Traditional Arts, Saudi Arabia’s leading institution for preserving traditional crafts. The Institute plays a central role in the event’s educational aspect, offering daily workshops in Saudi crafts such as Sadu weaving and palm frond weaving. These workshops bridge the gap between traditional techniques and their contemporary applications, fostering greater understanding and appreciation of these cultural practices.

Aligned with Saudi Vision 2030, the event positions the Kingdom as a cultural epicentre while creating sustainable economic opportunities for artisans. With interactive spaces, including a dedicated children’s pavilion and an entrepreneurship platform, the exhibition ensures that these valuable skills are passed on to future generations, strengthening cultural preservation and encouraging innovative applications of traditional crafts.

For international visitors, Banan offers a unique opportunity to explore Saudi Arabia’s cultural richness, while also celebrating the universal language of craftsmanship. The event underscores the relevance of ancient techniques in today’s world, contributing to both the preservation of culture and the promotion of sustainable development.

All the photos in the article are provided by the company(s) mentioned in the article and are used with permission.

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Trump’s Energy Pick Chris Wright Champions Fossil Fuels to Fight Poverty, Dismissing Climate Change Threats

November 29, 2024

President-elect Donald Trump’s nominee to lead the Department of Energy, Chris Wright, is drawing scrutiny for his stance on fossil fuels and climate change. Wright, CEO of Liberty Energy, argues in a corporate report that hydrocarbons are essential to ending global poverty, which he deems a greater threat than climate change.

In the February report titled *Bettering Human Lives*, Wright contends that the energy transition “has not begun” and criticizes what he calls over-optimism about renewable energy. Instead, he advocates for increased fossil fuel production, citing its role in improving living standards and reducing deaths from extreme weather over the past century.

“Carbon is essential for life,” Wright wrote, pushing back against the treatment of carbon dioxide as a pollutant. He has also launched a foundation promoting propane cook stoves in developing countries.

Critics, including climate scientists, have rebuked Wright’s claims. Peter Reich of the University of Michigan called his logic “terrifyingly absurd,” comparing it to dismissing the dangers of flooding despite water’s necessity for life. Other experts, such as Michael Mann of the University of Pennsylvania, pointed to recent deadly climate events, like Hurricane Helene, exacerbated by warming temperatures.

Morgan Bazilian, director of the Payne Institute at the Colorado School of Mines, described Wright as emblematic of the Trump administration’s pro-fossil fuel agenda, which seeks to maximize domestic oil and gas production while withdrawing from international climate agreements. “The vibes will be better for the oil and gas industry,” Bazilian said, noting that Wright’s stance overlooks the urgent need to reduce global emissions.

Wright has expressed support for certain non-petroleum energy sources, such as geothermal and small modular nuclear reactors, but he criticized solar and wind as insufficient. His report also falsely claims that polar bear populations are rising, a statement contradicted by experts like Charlotte Lindqvist of the University of Buffalo, who highlights habitat loss due to melting sea ice.

A spokesperson for the Trump transition team defended Wright as a “bold advocate” for affordable energy and U.S. energy independence. However, climate scientists warn that his approach prioritizes short-term economic gains at the expense of addressing the accelerating impacts of climate change.

Related Readings:

Trump’s Efficiency Panel, Led by Musk and Ramaswamy, Targets Federal Regulations

Why Trump Won: And Some Consequences .

Trump 2.0: The Most Significant Members of His New Inner Circle

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Trump’s Efficiency Panel, Led by Musk and Ramaswamy, Targets Federal Regulations

November 27, 2024

Elon Musk and Vivek Ramaswamy, appointed by President-elect Donald Trump to lead the Department of Government Efficiency (DOGE), have unveiled plans to overhaul federal regulations. Their strategy includes identifying and repealing rules they deem excessive or unauthorized, aiming to streamline government operations and reduce costs.

In a recent *Wall Street Journal* op-ed, the duo outlined their approach, citing recent Supreme Court decisions that limit agencies’ rulemaking powers. They intend to recommend sweeping regulatory cuts, mass layoffs across federal agencies, and the elimination of billions in spending they claim Congress never authorized. DOGE’s work, they said, would conclude by July 4, 2026, in time for America’s 250th anniversary.

Experts warn, however, that dismantling federal regulations is no small task. The Administrative Procedure Act (APA) requires a detailed repeal process, including public consultation, which could span years. While Trump could issue executive orders to pause enforcement, agencies remain bound by law to uphold many rules.

Legal challenges are also anticipated. Progressive groups and Democratic officials are likely to contest any broad deregulation efforts, mirroring the legal battles that hampered Trump’s first-term rollback of Obama-era policies.

Musk and Ramaswamy’s initiative may leverage recent Supreme Court rulings restricting agency authority, but many regulations are explicitly authorized by Congress or upheld by courts, making them harder to overturn. Legal experts predict a protracted battle over the validity and enforcement of DOGE’s recommendations.

If successful, DOGE’s work could reshape the federal bureaucracy, but the road ahead promises to be legally and politically contentious.

Related Readings:

Trump 2.0: The Most Significant Members of His New Inner Circle
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Musk’s $1 Million Daily Giveaway for Trump Raises Legal Concerns

Elon Musk’s Top Financial Tips – How to Invest Like a Billionaire

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An Ethical Consultant: Giuseppe Salvato. The Human Aspects and the Tenacity of His work.

November 27, 2024

By Luca Collina MBA

Who is Giuseppe Salvato?

I was a junior colleague in the company where he worked when I met Giuseppe, my mentor and friend. Now, after 12 years, I have decided to reveal his human side and his professional qualities since he was such a profound advocate of approaches and values that these days are indispensable for every consultant and which are priceless in our move towards GEN-AI. We have planned this interview, during which we will discuss his ideas and moral principles.

Perseverance and Empathy: Core Values in a Multifaceted Career

Giuseppe attributes most of his achievements to persistence—a term that today’s language might describe as resilience. To him, tenacity has been an impelling factor enabling him to negotiate professional mayhem, adjust to modifications, or stay focused amid rough periods; however, humility remains equally necessary because it makes him draw lessons from experiences, including triumphs and missteps.

Intellectual curiosity and a great desire to engage other professionals are critical components of Giuseppe’s versatile job that thrives in a rapidly changing environment. The other value which Giuseppe insists upon is empathy, which he says forms the basis of his career in this domain. “To understand what others require should always be the beginning point in offering professional help,” he observes, asserting that rapport with those around you is the key to fulfilling any role.

What is Flexibility and Adaptability?

For Giuseppe, flexibility and adaptability are not just soft skills but transformative competencies that make a big difference in how you work as a professional. These characteristics enable him to develop solutions that are customised to suit clients’ specific needs, guaranteeing personal and efficient strategies every time. It’s like trying to make a suit that fits perfectly; each client requires different handling, just as each suit does.

For him, in his consulting services, where there is fast-paced change within business circles, being able to make changes in his plans or approaches is very important. Because of his continuous learning effort, which involves flexible behaviour in all aspects of life, such as teaching careers and corporate leadership programs, he has succeeded under various circumstances.

Client-Centred Ethics: The Secret to Long-Term Relationships

Resolute ethical inclinations guide his professionalism towards customers; he explains this root notions as the basis governing all his decisions and actions. Clarity coupled with openness (arguably) holds the upper hand amid those who deal with other people or work for them; thus, according to Salvato, ‘It goes without saying that one should, first of all, think about professional and personal ethics while in any relationships.

Among the principles Giuseppe follows is impartiality, arguing, “The company pays me, not its CEO”(no complacency), thereby ensuring that his recommendations serve the organisation’s best interests but not personal agenda or gain. Trust is created by simply being honest with people and giving them practical advice and direction rather than flattering them.

Similarly, he suggests that leaders are agents of change within their organisations. It is crucial to note that leadership styles set the pace and point towards which subsequent changes will take place. This explains why he is widely regarded as a confidant to several corporations for his ability to make it seem simple with great understanding.

Advice for Younger Generations: Seize Opportunities in a Fluid World

Giuseppe sees the changing job market as favourable for younger professionals since their ability to adjust quickly fits the current fast-changing professional field. So, they advise them to make choices that seem unsafe at first because they often result in unknown development or success.

According to him, these attributes are required from youth: being flexible enough to respond positively when the situation demands it. While he talks about mutual support for growth and development, he says it is impossible for someone to give what he does not have because you cannot give out what you do not possess.

To redefine old tracks with new connectivity between the world known as life today means something only available during specific periods in one’s life; still, it requires insistence and ability to survive, though according to Giuseppe, this can only be possible through intergenerational dialogue within the communities of practice.

Insights for Peers: Embrace Change and Responsibility

According to Salvato, his peers should concentrate more on their joint career of mastering and interacting with younger professionals rather than emphasising what sets them apart (like sacrifices or values). This means accepting the good sides of the next generation while inclusively seeking common grounds where experiences can be shared without limitations. “The friendships we make by offering help to others or asking them for it constitute part of our personal journey”, he says. The sense of security no longer lies within external circumstances. Still, it must be grown internally in this fast-changing world because responsibility is a better teacher than experience at the end of the day. Therefore, he maintains that an individual’s advancement stems from him/herself being open-minded enough to alter his/her life whenever needed, and is should begin with one’s career and life.

Final Reflections

Giuseppe’s professional journey and philosophical insights offer valuable lessons for anyone navigating today’s complex and competitive world. By fostering resilience, humility, and and adaptability and by remaining grounded in strong ethical principles, he demonstrates the profound impact of personal and professional integrity on long-term success.

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About the Author

Luca Collina is a transformational and AI Business consultant at TRANSFORAGE TCA LTD. York St John University awarded him the Business – Postgraduate Programme Prize and CMCE (Centre for Management Consulting Excellence-UK) for his paper in Technology and Consulting Research Prize. Author/External Collaborator of CMCE.

COP29 Closes with Controversial $300 Billion Climate Finance Deal

November 26, 2024

The Baku Climate Summit ended on Sunday with a dramatic close as COP29 President Mukhtar Babayev secured approval for a $300 billion finance plan to assist developing nations in addressing climate change impacts. Dubbed the “Baku Breakthrough,” the deal was pushed through in the final moments despite vocal criticism from both supporters and skeptics.

The agreement, set to triple prior commitments by 2035, drew praise from Babayev as a milestone in climate diplomacy. However, many developing nations, particularly least-developed countries and small island states, condemned the plan as inadequate. India’s envoy, Chandni Raina, criticized the deal as emblematic of wealthy nations shirking their responsibilities.

Negotiations were fraught with geopolitical challenges, including fears of the U.S. withdrawing from climate agreements under President-elect Donald Trump. The U.S. delegation’s limited role, coupled with global tensions from the Ukraine war and Middle East conflicts, hampered efforts to increase funding.

Observers worry the divisions exposed in Baku will complicate preparations for COP30 in Brazil, where the world must grapple with deeper emission cuts and rebuilding trust among nations. Tina Stege, climate envoy for the Marshall Islands, expressed frustration, stating, “We came in good faith, yet saw the worst of political opportunism.”

Despite its limitations, experts like Eliot Whittington of the Cambridge Institute for Sustainability Leadership argued the deal demonstrates the enduring importance of multilateral climate diplomacy. However, the path to more meaningful progress appears steep as global climate efforts face mounting obstacles.

Related Readings:

Climate Change, Capitalism, and Invisible Hands of the Market: A Critical Review

Rio Summit Balances Climate Finance and Global Uncertainty
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COP29 Opens in Baku: Can Nations Unite on a New Climate Finance Goal?

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