Finance & Banking — Why Global Crisis Management Is Becoming Finance's Most Critical Skill

Finance & Banking · 2026-03-15

Today's developments reveal an escalating pattern of direct government intervention in private sector operations, coupled with intensifying geopolitical risks that could impact financial markets. The Energy Secretary's unprecedented use of the Defense Production Act to force restart of oil operations in California, despite existing court orders, signals a potentially volatile regulatory…

OPENING The convergence of geopolitical tensions and domestic policy conflicts this week signals a fundamental shift in how financial institutions must approach risk management. As markets grapple with escalating Middle East tensions and unprecedented regulatory interventions in the U.S. energy sector, the traditional playbook for financial stability is being rewritten in real time.

The invocation of the Defense Production Act in California's energy dispute represents more than a regulatory skirmish – it's a stark reminder that government intervention in markets has entered a new era. This heavy-handed approach to industrial policy, combined with mounting tensions in Iraq and Iran, creates a complex risk environment that few financial institutions are fully prepared to navigate. The banking sector, which has historically relied on relatively stable regulatory frameworks, must now factor in the possibility of sudden, politically-motivated market interventions that can reshape entire industries overnight.

What's particularly striking is the simultaneous emergence of technological wildcards, exemplified by China's rapid advances in AI development through initiatives like OpenClaw. While Western financial institutions have been focused on traditional risk metrics, Chinese tech innovation is quietly reshaping the competitive landscape of financial services. The enthusiasm around OpenClaw isn't just about technology – it's about China's growing ability to set the pace in critical emerging technologies that will undoubtedly impact global financial markets.

The escalating situation in Iraq, marked by urgent calls for U.S. citizens to evacuate, adds another layer of complexity to global market dynamics. Financial institutions must now consider how regional conflicts could cascade into broader market disruptions, particularly in energy and commodity markets. The interplay between geopolitical tensions and domestic energy policy creates a particularly volatile environment for investment strategies and risk assessment.

WHAT TO WATCH The next month will be crucial for financial institutions to reassess their crisis management protocols. Watch for how the intersection of domestic policy interventions and international tensions affects market stability, particularly in energy and tech sectors. The financial institutions that will thrive are those developing integrated risk frameworks that can simultaneously account for geopolitical tensions, regulatory interventions, and technological disruption. The era of treating these as separate risk categories is over – the new reality demands a more sophisticated, holistic approach to market analysis and risk management.