The world feels a bit topsy-turvy lately, doesn’t it? From shifting trade policies and regional conflicts to sudden sanctions and cyber threats, businesses are facing more global uncertainty than ever before.
According to SHRM, intensified global trade wars, higher energy prices, and escalating international rivalries are some top geopolitical threats for businesses in 2025.
These challenges are not just temporary bumps. They represent a new normal where businesses must constantly adapt to global shifts.
This is important, more so because geopolitical risks today are more interconnected than ever. A regional conflict in one part of the world can disrupt energy supplies or trigger market instability elsewhere. Overlooking global currents is a risk you can’t afford.
In this article, we’ll share how you can master geopolitical volatility and come out stronger on the other side.
#1 Keep Your Ear to the Ground
Information is your best friend when it comes to geopolitical risk. Knowing what is brewing globally helps you prepare and react smartly. Global events, like conflicts or trade disputes, can hit a business hard.
Keeping an eye on global trade rules and potential tariffs is a good start. Watch for conflicts in important regions, especially those affecting energy or shipping routes.
Pay attention to big tech policy changes, like those between the U.S. and China, which can impact access to critical technologies or markets. Also, look for economic signs like inflation or supply chain issues. These are considered top risks for U.S. businesses.
Like many businesses, you can hire experts to watch for new laws, wars, or sanctions. These employees focus on understanding what politicians want to achieve and what might be on the horizon.
Or you can use special tools called geopolitical intelligence platforms. These tools scan news and data to give early warnings about political, social, legal, economic, and cyber changes.
#2 Manage Risk Through Market Diversification
Just as you would not invest all savings in a single stock, relying on a single market or supplier for a business can be risky.
Tap into multi-country sourcing for your supply chain. This involves finding alternative suppliers in different regions, even if you have to pay higher upfront costs. A significant 73% of companies have already revamped their supply chain networks over the past 2 years.
Another approach is to expand geographically by selling in different regions or countries.
U.S. companies, for instance, are expanding their presence in the UK economy. The economy here has been the fastest-growing in the G7 during the first quarter of 2025, registering 0.7% growth.
For a deeper understanding of the market, hiring local employees is highly recommended. The good news is you can hire in the UK without establishing a full legal entity.
Employer of Record, or EOR services in the UK, can help you hire local talent quickly and compliantly.
“An EOR allows companies to hire talent in new markets without setting up legal entities, and more importantly, without carrying the full weight of legal, financial, and compliance risk. It manages local regulations, tax requirements, employment contracts, and benefits on your behalf,” says Remote, a global HR and payroll platform.
#3 Build Strong Local Partnerships
Building solid relationships with other local businesses can significantly boost resilience. This creates a robust network.
Practical benefits of these partnerships include shared resources. You can team up to share marketing costs, like organizing joint events or splitting advertising expenses. This is particularly helpful if you operate with a limited budget.
Collaborating with local partners also allows you to tap into each other’s customer bases, reaching new people you might not have otherwise. Pooling resources, like marketing costs or leveraging each other’s networks, amplifies efforts and saves money.
Moreover, if you’re expanding into a new region, local partners help navigate local laws, understand cultural nuances, and set up faster. They know the local market best, ensuring a smoother and more efficient expansion process.
In the Netherlands, for instance, it’s illegal to work in some states while holding only a tourist visa. Remote highlights that employers hiring internationally must fully understand and comply with the employment and labor laws of the hiring country. Failing to adhere can lead to hefty fines, penalties, or even jail time.
Thriving in a Volatile World
The world will always have its ups and downs. But you do not have to be a passive bystander.
You can protect yourself and build a stronger, more adaptable, and more resilient foundation if you master these strategies. This helps build confidence among board members, business partners, customers, and supply chain providers, which is a significant competitive advantage in uncertain times.
So, embrace these changes and stay prepared. Your business will flourish, no matter what challenges the world throws its way.
