Building Geopolitical Muscle 2026

Meanwhile, competition for technological and economic primacy will sustain elevated levels of rivalry for the foreseeable future, particularly between the US and China and amplified by advances in artificial intelligence (AI). These forces have pushed geopolitics firmly into the corporate boardroom. Yet this heightened attention does not always translate into strategic advantage. From board directors to C-suite leaders, country managers and operational teams, everyone has a view on geopolitics, often shaped by the latest headlines. While such widespread awareness can sharpen sensitivity to external shocks, it rarely translates into coordinated action. Only a limited number of firms have moved beyond this stage and built comprehensive geopolitical capabilities. These companies treat geopolitics not as an episodic distraction or risk to manage but as a core and systematic input to decision-making, including on investment, sourcing and sales. Developing this capability takes time, refinement and tangible commitment from the top. Like physical muscle, geopolitical muscle strengthens through consistent use: repeated cycles of assessment, decision and execution. Disruptions in the global economy FIGURE 2 Very lowlowModerateHighVery High Very short term Short term Medium term Long term Very long termVolatility StabilityTransformation EvolutionPrivate consumption and demandPrivate investment and capital allocationFinancial markets and monetary policy Labour markets and human capitalPublic finances and fiscal policyInnovation, technology and data Natural resources, energy and environmentGlobal economic institutionsTrade and global value chainsHow do you rate the current level of disruption? How long do you expect current disruption to last? Note: Chief economists were asked to rate the level and duration of disruption on a scale from 0 to 100 with five labelled segments of equal length. Data reported are median values. Source: Word Economic Forum. (September 2025). Chief economists’ outlook5 The purpose of this white paper is to identify the different choices companies are making to develop their geopolitical muscle (i.e. the organizational capabilities that turn awareness into action) and to provide practical guidelines for executives seeking to build or strengthen these capabilities in their own firms. This builds directly on the previous paper, From Blind Spots to Insights: Enhancing Geopolitical Radar to Guide Global Business,6 which examined how firms detect and assess geopolitical factors.The evidential basis for this paper comes from 56 interviews with senior executives across multiple industries and geographies. All are drawn from firms with significant international commercial exposure. Interviews were conducted off the record to encourage candour. However, some participants agreed to share their experience publicly, and their cases are profiled in dedicated illustrations throughout the paper. Building Geopolitical Muscle: How Companies Turn Insights into Strategic Advantage 6