There has been a lot of volatility recently both internationally as a result of on-going conflicts in regions critical to many countries’ economies and the unpredictable, unilateral decision-making by President Trump; as well as nationally in the wake of the recent local elections. Will the Prime Minister last the month, survive to the political party conference season or limp into the new year, and what will happen to the bond market, gilts, inflation, interest rates and growth prospects as a result? What the markets really need is a period of stability.
Global crises are bouncing the world’s stock markets around like a ball. One minute share values are up, the next they’re down. Analysts and investors almost change their minds daily about the impact of unforeseen events on the future of the markets. Equally in the UK, in the aftermath of the local government elections, there is pressure to react quickly to developments, to change direction and turn everything on its head.
The risk is that knee-jerk reactions to a series of unexpected and some less surprising shocks will drive business decisions. We must not lose sight of the fact that achieving success takes time and stability. It requires businesses to work through a process, stick to a long-term plan and be consistent.
As Rudyard Kipling wrote: “If you can keep your head when all about you are losing theirs…Yours is the Earth and everything that’s in it.” It’s vitally important to the success of the markets that companies have long-term goals that their management, employees, suppliers and investors buy into, rather than chopping and changing because of outside circumstances: real or perceived threats. Companies need to stick to their objectives and believe in what they are doing.
At the time of writing, the UK market is doing relatively well despite the global and local shocks. There is a growing positivity (despite some unhelpful dissenting voices), and evidence of increased interest from overseas investors. What can companies do to capitalise on this confidence and avoid getting distracted by chaotic events?
Get involved in business forums and groups at a city, regional, national or even international level, in-person and online. Work together with other companies to influence the voices coming from bodies like the British Chambers of Commerce, Institute of Directors, LSE, and UK Business Forum, to ensure that there is a commonality of approach and sentiment. Be vocal about what you want and need in order to succeed and lobby for clarity and consistency.
Seek opportunities to come together within industry sectors and with peers from other sectors. Make use of these professional groups and industry association memberships to participate in events and network to influence policy. These organisations can only be relevant and useful if they have an engaged and vocal membership steering their direction.
Individually, companies need to communicate exceptionally clearly to their markets that they have a five-year plan and that they are sticking to it. That they are not just looking to tomorrow but many years into the future. That while they recognise that there will be many bumps in the road – no plan is perfect – they believe that with hard work they can achieve their objectives. Companies may not be able to promise the immediate returns that people crave from crypto investments and US tech stocks, but they can deliver the long term growth that the market and stakeholders want to rely on.
Finally, the summer months present an opportunity for companies to re-assess their short, medium and long-term risks. The identification of these risks and effective risk management is critical for business stability. That is particularly true for longer-term risks which need to be managed throughout the company’s business plan time horizon and are generally harder to manage, compared to short-term risks which can be more visible or more readily understood. Risk management within both private and listed companies is an increasing focus for senior management / boards and regulators in terms of the processes to identify and assess risks, the internal challenge in respect of those risks, and the ongoing monitoring of risk.
As global geo-political developments continue to reverberate and combine with national issues that create uncertainty and impact economic stability, companies are doing what they can to create internal stability in the face of external chaos. Management teams are taking a firm grip on what they can control and taking risk management far more seriously than they would otherwise have done to create resilience in a world where everyone seems to be losing their heads.
This article was originally published in the May 2026 Corporate Advisers Rankings Guide. For more information, please contact Joseph Archer.
