Board Perspectives: Risk Oversight, Issue 173

After decades of globalization shaping the world order, businesses are now forced to accept a new reality. Geopolitical risk is an ever-growing threat with far-reaching potential consequences. This risk arises from a growing polarity in the interactions between and among countries. Shifting and expanding alliances; intensifying economic competition among nations, national security concerns, and political division; and instability all contribute to geopolitical risk. The reason geopolitical risk is so important is simple: Companies operate in a hyperdigital world and global markets are incredibly nuanced and complex.

In this issue of Board Perspectives, we summarize suggested steps directors can take to address geopolitical risk.