The impact of the Russian-Ukrainian crisis on management practices for investments, notably due diligence practices.

Abstract

This thesis examines the impact of the Russian invasion of Ukraine on investment practices, particularly due diligence practices in investments. The conflict has created a sense of uncertainty and instability, leading to cautious investment behavior and a decline in foreign direct investment. Businesses are adapting by adjusting training programs, reassessing continuity plans, diversifying suppliers, and giving greater attention to environmental, social, and governance (ESG) considerations. There is a growing awareness of the humanitarian consequences of the war, prompting a desire to contribute to post-conflict reconstruction efforts. This research highlights the intricate interplay between the war, geopolitical dynamics, and investment decision-making, emphasizing the need for thorough due diligence, risk assessment, and adaptable strategies in politically volatile regions. It also highlights the overlooked assessment of geopolitical risks in traditional risk assessment practices and the disruptive potential they pose to investment decision-making. Eventually, it raises an important question regarding the effectiveness of EU regulations in addressing geopolitical risks concerning investment practices.