Measure and ‘stress-test’ preparedness for geopolitical shocks to be proactive rather than reactive.
Companies must be viable irrespective of changes in the macro environment.
As the world moves from crisis to crisis, leaders scramble to respond in real-time. Over the past several years, notable geopolitical events have included the COVID-19 pandemic, the 2017 Gulf crisis, the Russian-Ukraine War, the Gaza War, and the China-U.S. stalemate.
In response, institutions are caught unaware, flat-footed, and stranded, physically and substantively. Rapid and seemingly irreversible decisions often have lasting implications: closing operations within countries, permanently evacuating staff, and adopting untenable political positions (intentionally or by accident). A never-ending series of geopolitical shocks means that urgency levels are continually high.
How can leaders anticipate events that unfold without any warning? Is there a way to prepare? Institutions can regularly measure and enhance their organizations’ geopolitical readiness through an established framework. A readiness framework should also be matched by an infrastructure that allows for proactive investment before shocks come. Scenarios can then be planned and prepared for.
With this approach in place, leaders and institutions can reduce risk and improve resiliency. They will also be able to pursue markets in stormy geopolitical seas and achieve separation from competitors.