In this article, Baker McKenzie partners Reagan Demas and Anahita Thoms, who co-lead the Firm’s Crisis Management & Strategic Response team, write that as geopolitical tensions reshape the global business landscape, corporate leaders face a new era of risk and complexity. From trade wars to cyber threats, these forces have moved from the margins to the center of strategic decision-making. Companies that employ geopolitical foresight will be better equipped to navigate disruption and unlock growth opportunities.
The article highlights how many companies were blindsided by major geopolitical events, such as the Russian invasion of Ukraine and unexpected U.S. tariffs on close allies. These shocks exposed vulnerabilities in corporate strategies that failed to account for low-probability but high-impact scenarios. Anahita and Reagan suggest that operational efficiency alone is no longer sufficient; companies must embed geopolitical risk assessments into every major decision, from supplier selection to investment planning. Ignoring these risks can lead to costly missteps, and boards must evolve to include expertise in international affairs to better anticipate and respond to global developments.
This article originally appeared on Fortune.com and can be found here: https://fortune.com/2025/10/18/baker-mckenzie-crisis-leads-risk-management-tariffs-crisis/