Overview
- The study reports 2025 global policy uncertainty at a two-decade high, exceeding global financial crisis levels more than fourfold and topping COVID-19 peaks by about 50%, based on IMF indices.
- Fewer than 20% of companies have a dedicated geopolitics function, with most firms remaining reactive and lacking routines that link geopolitical signals to core business decisions.
- Executives cite trade reconfiguration, weaker multilateral frameworks, and the weaponization of economic tools, with top risks including US policy volatility and tariffs, the Russia-Ukraine war, US-China rivalry, and European competitiveness.
- Companies employ varied operating models—task forces, senior advisers, or dedicated teams often housed in government or corporate affairs—yet most still rely on manual curation or consultants as AI tools remain of limited practical use.
- Authored by IMD, the World Economic Forum and BCG, the paper draws on 56 executive interviews and nine case examples and proposes clear top-anchored mandates, robust sensing systems, adaptive models, credible talent, and disciplined integration into decisions.