Geopolitical readiness is now an imperative for corporate boards

Boards must adapt to an environment where geopolitical risks are a fixture and can hurt business more than any misstep

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There was a time when an Indian company board's biggest worry was profits dipping or reputational mishap. Today, drone strikes in the Middle East rattle oil prices, US trade restrictions reshape supply chains and cyber attacks paralyse global operations within hours. We live in a world where the unexpected is fast becoming the norm. The corporate landscape has entered what I call the Age of Perpetual Disruption, where geopolitics has moved from the periphery to the centre of every serious business conversation.

Boards, generally accountable for profits and governance, were never designed for today's uncertain global economy. A Deloitte survey found that more than 60% of global leaders see geopolitical unpredictability as their greatest concern, surpassing inflation or market volatility. The World Economic Forum's Global Risks Report names state-based armed conflict as the most immediate threat. The Russia-Ukraine war, which forced over 200 Fortune 500 companies like IKEA, McDonald's and Volkswagen to suspend or exit operations, reminds us that geopolitical shocks can destroy value faster than any business misstep.

Geopolitical risks can be varied and insidioushigh-probability threats like regional instability in the Middle East, growing trade protectionism and cyber warfare; or medium-probability like the Russia-Nato escalation, North Korea's provocations and political crises in emerging markets. Even lowprobability risks such as European fragmentation can reshape global finance and consumer sentiment. Every company, industry and geography now has its own vulnerability heat map, but the underlying lesson is identical: no board can afford to ignore geopolitics.