politics
Geopolitical risk needs to move away from the ‘after-dinner speaker’: Eurasia Group and Rio Tinto’s Dominic Barton
Surprise U.S. tariffs. A war involving Iran. New American tech bans and Chinese export controls. The list of geopolitical shocks that CEOs must be mindful of, let alone plan for, keeps getting longer.
TL;DR
- Geopolitical shocks, such as tariffs, wars, and tech bans, are increasing, requiring CEOs to actively plan for them.
- The traditional approach of treating geopolitical risk as a secondary concern, like an 'after-dinner speaker' topic, is no longer effective.
- Companies must integrate geopolitical risk into their core business strategy, considering its impact on balance sheets, supply chains, data management, and corporate structure.
- The global order is shifting away from established international institutions and free trade principles.
- Rio Tinto is increasing its purchasing from China due to the quality and durability of Chinese-made goods, despite higher costs compared to Western suppliers.