Geopolitical tensions and dynamic economic shifts will increasingly influence and define the strategies of many companies and investors in 2025 and beyond.

Businesses and investors worldwide face increased uncertainty from the rise in potential trade wars that the new US administration is intent on starting, regardless of the view of many respected international economists.

All this uncertainty means that businesses need as much professional insight as possible into the impact of geopolitical and geoeconomic battles on their companies and investments, especially given the international nature of many businesses' supply chains. 

The knowledge that strategic communications, international public affairs and stakeholder engagement professionals will become indispensable for anticipating and navigating these disruptions, board members and C-suite leaders are intensifying their focus on geo-political and geoeconomic risk management.

There is no longer a need for just national lobbying. In the era we are entering, businesses and investors require people who can see how the world is connected internationally and who can offer insight into how to navigate these turbulent times. 

We are entering a world in which the expertise of strategic communicators will complement that of many businesses' general counsel.

Why Geo-political Risk Management Is a Top Priority

While geopolitical instability has been escalating for several years, especially with the looming Trump presidency, recent data underscores just how central these challenges have become.

According to the World Economic Forum’s 2025 Global Risk Perception Survey, over 60% of executives across G20 economies named geo-political tension as one of their top three risks. Separately, Deloitte’s 2024 Global Risk Management Survey revealed that 70% of chief financial officers attributed at least one major revenue shortfall in the last 12 months to political upheavals and policy shifts.

Such pressures extend well beyond supply-chain disruptions. Whether dealing with tariffs, trade sanctions, or localised conflicts, companies face potential financial losses, brand damage, and stalled expansion. At Davos, a keyword used was ‘fragmentation,’ the breaking down of the interconnected world that gave us globalisation.

In fact, The Economist’s Impact Unit has a dedicated team studying new globalisation. This team focuses on how the ‘global order is changing, ushering in a period of multipolar politics.’

This is not the end of globalisation by any means. It is an adaption of it, a move to a more local version, created by the disruption caused by AI and other technologies and growth in emerging markets, which has impacted people and their wants and expectations.

By investing in proactive national and international public affairs, strategic communications, and risk assessment frameworks, organisations stand a significantly better chance of weathering crises and capitalising on emerging opportunities.

Which Companies Need to Invest in Strategic Communications?

Global Technology Conglomerates

Tech companies operating multiple data centres worldwide and relying on a maze of international regulations can be particularly vulnerable. Policy shifts around data sovereignty or cybersecurity measures can dramatically affect these companies’ bottom lines and market access.

Looking at the rise of AI and GenAI, we are already seeing a different set of values in how nations and markets are looking to regulate this technology.

The United States, the United Kingdom, and the European Union are each shaping AI regulation with a mix of domestic oversight and global influence strategies. The EU’s AI Act, finalised in early 2024, is the world’s most comprehensive AI law, categorising AI systems by risk levels and imposing strict obligations on high-risk applications, particularly in biometric surveillance and critical infrastructure. By contrast, the US delegating responsibility more to the companies themselves and so pursues a more sector-specific and innovation-friendly approach. While the Biden administration focused on safety, national security, and voluntary industry commitments, the Trump presidency is looking to punish countries and markets that penalise American tech companies.

Meanwhile, the UK is positioning itself as a flexible regulator, advocating a “pro-innovation” approach that relies on existing legal frameworks rather than, for the time being, creating a single AI law.

Despite differing regulatory styles, all three are increasingly exporting their AI governance models globally. The EU’s AI Act has already influenced policymakers in Japan, Canada, and Latin America, while the US is leveraging its AI safety principles in diplomatic and trade discussions. The UK’s AI Safety Summit in 2023 served as a platform to build international consensus on AI risks and guardrails, particularly around advanced foundation models. As AI regulation evolves, these leading economies are using their regulatory weight and diplomatic channels to ensure their AI principles—whether focused on safety, ethics, or market-led flexibility—become the dominant global standards.

Venture Capital and Corporate Venture Capital Firms

Investors increasingly manage global portfolios with stakes in technology, life sciences, and fintech ventures. These firms must stay ahead of rapidly evolving regulations—from data privacy laws in Europe to emerging tech governance in Asia—to safeguard the value of their investments.

Corporate venturing companies can benefit from the expertise and influence network that their parent companies have if they have a global presence. Leveraging this knowledge and the insight of an external strategic adviser can help reduce the risk of a company that they are investing in struggling to enter a new market.

Mid-sized Companies with Global Ambitions

Businesses that are expanding overseas or contemplating partnerships abroad face the same set of complexities but often lack the in-house capabilities to manage them.

Their survival and opportunities for growth can hinge on being able to connect with partners and stakeholders that can help them navigate international regulatory environments, changing their positioning statements in order to access growth international markets.

For companies of these sizes, if they receive investment from VCs or CVCs, it is the geo-political expertise that parent companies have that can help them navigate different legal jurisdictions. 

Who Provides Effective Geo-political Risk Counsel?

In-house Public Affairs and Communications Teams

Larger organisations often maintain internal departments dedicated to public affairs, strategic communications, and government relations. These teams benefit from direct contact with the executive suite, a deep understanding of company culture, and existing relationships with influential stakeholders.

When geo-political risks spike, internal teams can swiftly coordinate cross-functional responses, aligning communications, legal, and operational strategies.

The rise of the partnered approach between a firm's General Counsel, who often has a legal background and a strategic communications advisor can provide the C-suite and Board with the necessary insight to make strategic decisions and help them navigate a growing fragmented trading environment.

Independent Specialist Advisers

For specialised insights, external consultants and advisers can offer strategic direction, regional expertise, and a broad network of government, media, and community contacts.

Venture capital firms, for instance, frequently retain boutique consultancies with deep knowledge of fintech regulations in emerging markets. Independent advisers also bring an outside perspective, helping boards and C-suites avoid insular thinking and group bias.

The Power of Research, Influence, and Intelligence

Robust Research and Real-time Monitoring

Staying ahead of abrupt policy shifts calls for continuous data collection and analysis. McKinsey’s 2024 Emerging Markets Risk & Opportunity Insights reported that companies with “mature” risk intelligence teams were 55% more likely to respond effectively to sudden regulatory changes than those without comparable capabilities.

Influence and Policymaker Engagement

Lobbying and relationship-building with policymakers are crucial, especially for tech and manufacturing firms.

Effective peer-to-peer stakeholder engagement strategies go beyond crisis management; they inform legislators about the broader economic and social value of a company’s operations, potentially reducing the scope for damaging regulations. For this, there is a clear need to understand how civil servants think and work.

Insight-Driven Corporate Strategy

The final step involves translating geopolitical intelligence into actionable plans. Whether diversifying supply chains, selecting a new market, or cultivating partnerships that mitigate exposure, strategic communications counsel ensures these decisions are communicated convincingly to investors, customers, and, critically to employees.

The Lasting Value of Strategic Communications Investment

Research demonstrates that organisations prioritising geo-political risk analysis and communication strategies outperform their peers in both resilience and growth.

By cultivating in-house expertise or bringing in specialists, companies can:

• Enhance Operational Stability: Mitigate disruptions from tariffs, conflicts, or policy reversals.

• Protect and Elevate Brand Reputation: Demonstrate foresight and agility, instilling confidence in stakeholders and, importantly, regulators.

• Seize New Growth Opportunities: Identify untapped markets or niches that competitors avoid due to perceived risks.

From Risk to Resilience

Geo-political and geoeconomic challenges show no sign of abating; if anything, they are likely to become more regular and complex.

In this environment, corporate boards and investors should view strategic communications and political risk advisory as a non-negotiable part of their organisational architecture. Whether relying on in-house teams or tapping into external expertise, a well-resourced approach to intelligence, lobbying, and stakeholder engagement is key to safeguarding growth and reputation.

By taking the long view, integrating geopolitical and geoeconomic risk analysis into core strategies, and staying connected with policymakers and global thought leaders, companies and investors of all sizes and sectors can convert uncertainty into a catalyst for innovation and expansion.

When managed skillfully, geo-political risk becomes more than a challenge—it becomes an avenue to shape the future of business on a global stage.

Get in touch if your business or investment portfolio needs counsel, strategic communications support and advisory.

Strategic communication and stakeholder engagement are central to my expertise, and I’m here to share knowledge or explore potential collaborations.

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