Since risk is inherent in every business, in the absence of appropriate incentive compatibility structures, we may encounter behavioural patterns leading to decision making processes that de-risk the individual rather than taking the optimal decisions that would benefit the organisation. Such behavioural patterns may lead to functional paralysis and at times, to explosive business disruptions within the organisation.
Consistent with this approach, our outlook is based on the premise that current trade agreements will remain in place over the projection horizon. There are still a wide range of possible outcomes, which could play out over many different timelines. We do not know how the talks will conclude, and we do not know how governments will react to whatever outcome is reached.