
By Olivia Graham ,
Senior Consultant - Risk Consulting
12/08/2025 · 4 minute read
Growing protectionism, shifting trade policies, tariffs, and other geopolitical uncertainties are complicating the risk landscape for financial institutions, requiring senior leaders to reassess risk mitigation strategies in line with the changing geopolitical environment.
Traditional models of globalisation and operational resilience may no longer be sufficient; instead, risk-focused leadership teams must consider an intersectional approach that emphasises crisis preparedness, resilience measures, and greater communication and engagement from the executive level. These interconnected priorities are not only essential to helping your organisation thrive, but also to advancing the future of global finance at large.
The geopolitical environment demands a fundamental shift in how leaders think about and respond to risk. Geoeconomic confrontation, including tariffs, sanctions, and investment screening, as well as regional instability may threaten established trade routes and supply chains, challenging previous assumptions about globalisation and operational optimisation.
As these dynamics unfold, leaders must extend their risk management efforts beyond mere compliance and risk awareness to proactive engagement and strategic agility. Additionally, recent global developments and geopolitical tensions have increased the demand for greater accountability and proactive measures from financial institutions. Stakeholders, from investors to employees and clients, increasingly expect organisations to take a stand on social and political issues, particularly during a crisis but also before it arises.
The ability to anticipate, absorb, and recover from geopolitical shocks is no longer a luxury; it is a business necessity. Crisis readiness should involve a comprehensive approach that includes:
By proactively engaging with potential risks and uncertainties, leaders and broader organisations can position themselves to respond swiftly and effectively when crises arise. Doing so can help foster a culture of agility and adaptability within your organisation.
As financial institutions like yours grapple with geopolitical uncertainty, the concept of resilience must evolve. Operational resilience can no longer be defined solely by redundancy; it must encompass structural flexibility and adaptability.
To achieve this, leaders should focus on building a resilient infrastructure that allows for rapid adjustments in response to changing circumstances. Steps may involve:
By reimagining resilience, financial institutions can not only survive future crises but better anticipate and prepare for potential disruptions in an increasingly complex environment.
The way your organisation responds in a crisis can significantly impact your reputation. A negative or inadequate response can lead to lasting damage to your brand. Stakeholders now expect financial institutions to lead with value-aligned communication and transparency, particularly during times of crisis.
As your organisation navigates geopolitical uncertainty, you must prioritise reputation management as a strategic asset. This involves not only communicating effectively with stakeholders but also aligning your organisational values with actions. As representatives of your organisation and the faces behind your brand, it is important to demonstrate commitment to ethical practices that go beyond verbal agreements to action. By doing so, you can build trust and credibility with stakeholders, which is essential for long-term success.
While geopolitical uncertainty presents significant and often unpredictable challenges, it also creates opportunities for financial institutions willing to embrace proactive engagement.
By taking ownership of your narratives and implementing actionable strategies for crisis preparedness, resilience building, and leadership engagement, you can position your organisations for success, both now and into the future.
Senior Consultant - Risk Consulting
United Kingdom