WHEN GEOPOLITICS BECOMES A GOVERNANCE ISSUE
Global uncertainty has become a constant rather than a temporary disruption. It is now a persistent force shaping corporate outcomes, influencing strategy, investment decisions and operational execution. Trade fragmentation, intensifying strategic competition between major powers, regional conflicts and evolving regulatory regimes are now central to how boards of directors and executive leadership teams assess risk and opportunity.
According to the World Economic Forum Global Risks Report 2025, economic confrontations between major powers ranks among the top global risks perceived by senior leaders. This reflects a structural shift in the risk landscape, where economic and policy instruments increasingly act as channels of geopolitical impact, with direct consequences for enterprise value.
For boards, this evolution means that geopolitics can no longer be treated as peripheral context. For executive teams, it means that geopolitical insight increasingly informs decisions affecting capital allocation, market access and long-term competitiveness. Yet many organisations continue to struggle to translate heightened awareness into governed executive action.
From awareness to decision readiness
In a joint survey by the Business Roundtable and Georgetown’s Center for Business and Public Policy, more than 80 percent of chief executives reported that geopolitical and economic policy uncertainty materially affects planning and investment decisions. At the same time, fewer than half indicated that their organisations felt well prepared to respond in a systematic and coordinated way.
Apr-Jun 2026 Issue
Novartis