Board Perspectives: Risk Oversight, Issue 187 

Explore how resiliency and the upside of uncertainty can transform challenges into opportunities for boards. In this edition of Board Perspectives, Heidi Crebo-Rediker, a senior fellow at the Center for Geoeconomic Studies at the Council on Foreign Relations, emphasizes that the current business environment is not merely another economic cycle, but a significant structural transformation characterized by lower growth, higher inflation and increased volatility. She warns against strategic inertia, advocating for proactive engagement with emerging uncertainties to avoid being blindsided by risks without seizing potential opportunities. Crebo-Rediker also highlights Europe's strategic pivot toward increasing defense budgets and investments in energy, digital infrastructure and green transitions, presenting unique business opportunities.  

Here you will also find insights on the importance of adapting to shifts in global trade flows and geopolitical alliances and considering expanding into emerging markets, diversifying supply chains, and investing in renewable energy. Businesses should integrate geopolitical risk into their strategic planning and enhance their resilience through modernized infrastructure and robust cyber-threat management. Crebo-Rediker also cautions against overreacting or hastily withdrawing from key markets like China or the U.S., recommending instead a more nuanced approach that includes scenario planning and intelligence functions to better shape business environments. Overall, this newsletter serves as a guide for businesses to transform uncertainty into a strategic advantage by being adaptable, forward-thinking and globally aware.