Building Geopolitical Muscle 2026
Page 23 of 29 · WEF_Building_Geopolitical_Muscle_2026.pdf
Despite this growing scope, the majority of
companies interviewed still rely on ad hoc
mechanisms to inject geopolitical insight into
decisions. While flexibility has advantages, the
absence of formal routines can create inconsistency
across geographies, business units and time
horizons. Without adding bureaucratic layers,
systematizing geopolitical input, even through light-
touch templates or standing agenda items, can
enhance alignment and accountability.
Companies seeking to embed geopolitics into
decision-making should start by asking four simple
but pragmatic questions:1 Stakeholders: Who owns the key decision-
making processes where geopolitics
matters most?
2 Mechanisms: How will geopolitical insights
be discussed and integrated – through
committees, briefings or predefined triggers?
3 Contributions: What specific geopolitical
indicators or KPIs should accompany each
decision process?
4 Timing and frequency: When, and how often,
should the geopolitical muscle provide input to
ensure relevance without slowing execution?
Best practices Description
Embedded in
governanceGeopolitics integrated into existing decision-making bodies and committees, avoiding extra bureaucracy.
Systematized and
flexible mechanismsMix of formal institutionalized processes (committees) and agile, ad hoc engagements (travelling with the CEO/
executive committee, short memos).
Decision rights Geopolitical leads have a voice, and a vote if relevant, in key committees.
CASE STUDY 8
Philips: Coordinating a standing trade policy and geopolitics committee
Philips’ geopolitical set-up emerged during COVID-19, when
health tech became strategically sensitive. Government
Affairs leads cross-functional coordination and reports
to the Chief ESG and Legal Officer. The company uses
a task-force model to respond to risks like US tariffs:
delivering impact assessments, advocacy messaging and board updates. A standing Trade Policy and Geopolitics
Committee oversees horizon scanning and risk tracking.
The team holds monthly check-ins across procurement,
trade compliance, tax, legal, government affairs and
integrated supply-chain strategy, and maintains a risk
tracker with quantified impact assessments.
Source: Interviews, company analysis
CASE STUDY 9
Nissan: Structuring business-led geopolitical risk monitoring through task forces
Nissan’s geopolitical muscle is focused primarily on risk
mitigation and defence. Risk exposure is assessed through
a three-tier framework, categorizing risks as below ¥10
billion, below ¥100 billion or above ¥100 billion* in operating
profit impact.
Responsibility sits within the Strategy department, with a
small central group responsible for ongoing scanning and
issue identification. The team operates from a business
perspective, while a separate crisis management team, staffed with regional specialists, provides geopolitical
expertise for employee safety and continuity planning.
For high-impact issues, Nissan activates cross-functional
task forces. For instance, the tariff task force (30–40
members) meets twice a month to identify necessary actions
and confirm the progress of actions with regular reporting to
the CEO and CFO. Another task force focuses on sourcing
and supply-chain vulnerabilities from short-term to long-term
items. Inputs from both feed into a corporate risk map, which
informs long-term strategic planning.
* ¥10 billion is equivalent to c. $64 million, ¥100 billion to c. $640 million. Source: Interviews, company analysis
Building Geopolitical Muscle: How Companies Turn Insights into Strategic Advantage
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