The corporate landscape has entered what I call the Age of Perpetual Disruption, where geopolitics has moved from the periphery to the centre of every serious business conversation.

Boards, generally accountable for profits and governance, were never designed for today’s uncertain global economy. A Deloitte survey found that more than 60% of global leaders see geopolitical unpredictability as their greatest concern, surpassing inflation or market volatility.

The World Economic Forum’s Global Risks Report names state-based armed conflict as the most immediate threat. The Russia-Ukraine war, which forced over 200 Fortune 500 companies like IKEA, McDonald’s and Volkswagen to suspend or exit operations, reminds us that geopolitical shocks can destroy value faster than any business misstep.

Geopolitical risks can be varied and insidious—high-probability threats like regional instability in the Middle East, growing trade protectionism and cyber warfare; or medium-probability like the Russia-Nato escalation, North Korea’s provocations and political crises in emerging markets.

Even low-probability risks such as European fragmentation can reshape global finance and consumer sentiment. Every company, industry and geography now has its own vulnerability heat map, but the underlying lesson is identical: no board can afford to ignore geopolitics.

In response, companies are adjusting their strategies. They are relocating operations, re-configuring supply chains, delaying investments and exiting volatile markets. The new vocabulary of business includes near-shoring, friend-shoring and re-shoring. These shifts mark a deep transformation, from a world driven purely by efficiency to one that prizes resilience and adaptability.

Boards must, therefore, learn to see the world through both the radar and the sonar. Radar identifies visible threats such as wars, elections and trade disputes. Sonar senses the forces beneath the surface such as populism, social unrest, technological nationalism and data weaponisation.

It must ask uncomfortable but essential questions: How do we gather intelligence on shifting political and regulatory landscapes? Are we prepared for cyber aggression or supply disruption? Does contingency planning exist and has it been tested? How resilient would our people, markets and systems be if borders close or energy routes collapse?

For boards, it’s critical to practice Machiavelli’s ideology of preparing for war in times of peace. They must imagine a range of futures: a world of prolonged conflict and fragmented trade; one of technological decoupling with separate digital ecosystems; or a multipolar world in which emerging economies form new trade and technology networks. Each scenario demands a different strategic response, from asset diversification to partnerships in new markets.

Forward-looking companies are already institutionalising this approach. They have created cross-functional geostrategic committees that bring together finance, technology, supply chain and policy experts. They maintain risk dashboards, conduct tabletop simulations and consult external think-tanks for periodic briefings.

A new form of diversity is also required at the board level. Beyond gender or generation, boards must include directors who understand the global balance of power. Former diplomats, defence analysts, technocrats, cyber experts and professionals with deep international experience add perspectives that help navigate complexity.

Diverse thinking is now the ultimate safeguard against collective blind spots. In calm times, homogeneity may bring comfort; in turbulent times, it is a liability.

The pandemic demonstrated that resilience is cultivated over years and geopolitical disruptions will be the next great test of that resilience. The companies that endure will be those that can adapt operations across regions, protect digital and physical assets, safeguard employees in hostile environments and maintain public trust when shocks hit.

For Indian corporations, this conversation is particularly relevant. India stands at a crossroads of global trade, technology and energy politics. Friend-shoring trends present opportunities, yet India remains exposed to volatility in oil prices, semiconductor supply and regional unrest.

Indian boards must, therefore, become geopolitically aware, continuously evaluating exposure to manage sudden changes and aligning corporate policy with global realities.

Boards should institutionalize three disciplines. First, intelligence integration—collecting and interpreting both quantitative data such as tariffs and capital flows and qualitative indicators such as sentiment and policy direction. Second, scenario rehearsal—test strategic assumptions against multiple potential futures. Third, adaptive governance enabling boards to act decisively when circumstances change overnight.

The world today offers high volatility and low visibility—alliances shift, trade routes evolve, currencies fluctuate and technologies are redrawn along political lines. In such an environment, even the best-run companies can falter if they lack peripheral vision. The task of a board is not to predict every crisis but to guide the company’s moral and strategic compass through uncertainty.

In a divided world, corporations must serve as lighthouses—anchored in ethics, empathy and long-term thinking. The boards that succeed will be those that learn to navigate uncertainty with clarity and conviction.

Geopolitical risk is not a passing storm; it is the new operating climate. Every seasoned sailor knows that the wind cannot be controlled, but the sails can always be adjusted. The real question for every board is no longer how safe we are, but how ready we are to navigate the world as it truly is.

The author is chairman, RPG Group.