From Crisis Reaction to Strategic Geopolitical Response
Companies have built geopolitical muscle fast but remain reactive: about 90% strengthened capabilities last year, yet only around 15% embed geopolitics systematically in core decisions and about half feel prepared.
Summary
BCG's survey of large companies finds about 80% report significant geopolitical exposure, most acutely in trade and investment flows, critical sectors such as semiconductors and critical minerals, and ongoing conflicts. About 90% strengthened capabilities and most assigned senior ownership, yet only around 15% embed geopolitics in core decisions, many do not quantify impacts, and capital allocation, investment and innovation stay disconnected. Leaders align on building blocks across sensing risks, planning the response and turning decisions into action, and 95% plan further investment.
Editor's opinion
Most large companies have committed to building geopolitical capabilities, but few have moved from crisis reaction to systematically quantifying geopolitical impacts and embedding them in core
Key concepts
Geopolitical muscle · Sense-plan-act phases · Reactive versus forward-looking capabilities · Embedding geopolitics in decisions