2025 is shaping up to be a year where the intersection of global politics and business strategy will define the trajectory of organisations worldwide. Geopolitical risks, such as persistent trade conflicts, growing cybersecurity threats, and regional political instability, are no longer abstract concerns. They are tangible issues disrupting supply chains, destabilising markets, and testing the resilience of global operations.
Boards face mounting pressure to address these challenges head-on. For company secretaries and Chairmen, the responsibility is twofold: ensuring the board comprehends the scope of these risks and equipping it with the tools to act. Boards that prioritise geopolitical risk as part of their strategic agenda will not only protect their organisations from potential crises but also position themselves to thrive in a volatile world.
Why Geopolitical Risk Matters in 2025
The impact of geopolitical shifts is far-reaching, influencing everything from market stability to operational continuity. Consider these examples:
- Trade Sanctions: A global manufacturing firm faced significant delays when critical suppliers in sanctioned regions were cut off unexpectedly.
- Regulatory Shifts: An international financial institution restructured its emerging market operations to adapt to new compliance rules.
- Cyber Threats: State-sponsored cyberattacks are now targeting private companies, disrupting operations and eroding stakeholder trust.
Boards must recognise that geopolitical risks are not isolated events; they are interconnected factors capable of disrupting core business strategies.
Geopolitical events are now a top concern for businesses, with 83% of leaders identifying them as the primary threat to global economic growth, surpassing inflation and monetary tightening.
In this dynamic landscape, Sharon Constançon, CEO of Genius Boards, joins experts Dr. Ian Oxnevad and Mohamed Cassimjee to discuss actionable strategies for helping boards anticipate, mitigate, and navigate these complex risks to ensure resilience and strategic success.
Elevating Geopolitical Risk to the Boardroom
Designate a Geopolitical Intelligence Officer
Assigning a dedicated officer ensures ongoing monitoring and analysis of geopolitical developments. This role can be filled by internal senior executives with international experience or through external consultants and partnerships with think tanks. These experts provide the board with actionable insights, turning global uncertainty into informed decision-making.
Foster Open Dialogues
Boards must encourage a culture where directors feel comfortable raising contrarian views and challenging assumptions. The Chairman plays a pivotal role here, creating an environment that values diverse perspectives as part of governance discussions.
Commit to Continuous Learning
Workshops, case studies, and briefings by external experts are invaluable for keeping directors informed about evolving geopolitical landscapes. Boards equipped with up-to-date knowledge are better positioned to anticipate and adapt to emerging challenges.
Integrating Geopolitical Risk Into Governance
Embedding in Risk Frameworks
Geopolitical risk must be treated as a core aspect of the organisation’s risk management framework, alongside financial and operational risks. This ensures it is consistently evaluated in decision-making processes.
Scenario Planning: Preparing for the Unexpected
Boards should stress-test strategic assumptions using tools like geopolitical risk simulators or facilitated workshops. For example, a multinational logistics firm used scenario planning to successfully restructure routes, avoiding potential disruptions from trade sanctions.
Recurrent Board Reviews
Make geopolitical risk a standing agenda item in board meetings. Regular updates ensure that the board remains agile and can respond proactively to changes in the global environment.
Accredited Board Reviewer
Providing independent Board Performance Reviews for enhanced Board effectiveness.
Moving Beyond Reactionary Governance
Proactive governance is the key to seizing opportunities amid global volatility. For instance, the following examples illustrate how organisations have proactively managed geopolitical risks:
Anticipating Regulatory Changes in Emerging Markets
A Southeast Asian financial technology startup expanded its services across multiple countries by implementing innovative compliance strategies. By closely monitoring policy developments and engaging with local regulatory bodies, the company adjusted its operations to meet new requirements ahead of competitors. This proactive approach not only ensured compliance but also provided a competitive advantage in rapidly changing environments.
Diversifying Supply Chains to Mitigate Geopolitical Risks
Apple Inc. faced numerous geopolitical risks due to its complex supply chain spanning multiple countries. In response to escalating trade tensions between the United States and China, Apple implemented a “China plus one” strategy, diversifying manufacturing and sourcing to include countries like India and Vietnam. This approach reduced overreliance on a single region, enhancing operational stability amid geopolitical uncertainties.
These cases underscore the importance of proactive governance in navigating geopolitical challenges. By anticipating regulatory changes and diversifying supply chains, companies can enhance resilience and maintain a competitive edge in the global market.
The Role of the Company Secretary and Chairman
The company secretary is the cornerstone of effective governance, translating complex geopolitical data into actionable insights. Meanwhile, the Chairman’s role extends beyond facilitating discussions; they must champion the integration of geopolitical risk into decision-making, ensuring it is prioritised across all levels of the organisation.
Practical steps include:
- Using advanced analytics to present data-driven insights.
- Bringing in external experts for timely, in-depth briefings.
- Establishing accountability by incorporating geopolitical risk metrics into board evaluations.
2025: A Year to Lead With Vision and Resilience
As the global landscape grows more unpredictable, boards face a pivotal decision: will they react to crises or rise above them with foresight and preparation? By embedding geopolitical risk into their governance strategies, boards can turn uncertainty into opportunity.
For company secretaries, directors, and Chairmen, 2025 is the year to lead decisively—ensuring your board is resilient, informed, and equipped to navigate the complexities of a rapidly changing world. The future belongs to those who act with purpose. Are you ready to shape it?
If you found this article insightful and want to explore how to strengthen your board’s approach to geopolitical risk, we’re here to help.
- Discover how Genius Boards can support you in navigating the complexities of risk management and modern governance.
- Gain access to our expert evaluation services, tailored strategies, and actionable recommendations.
- Have Questions? Whether it’s about board dynamics, culture, or strategic planning, our accredited board evaluators are ready to assist.
Please contact Sharon Constançon for a free, no-commitment conversation or contact us directly to explore how Genius Boards can empower your governance framework to turn uncertainty into opportunity.
