Conducting international business is tricky. In a rapidly changing geopolitical landscape, businesses face an unprecedented need to adapt and navigate the complexities of international trade. These changes, driven by geopolitics, particularly with China, could significantly change the way businesses will do business. This means that companies must begin to adapt at the C-level. The Chief Geopolitical Officer may be able to provide solace for international companies.

THIS ARTICLE IS WRITTEN BY MOURAD SEGHIR AND CEM ADIYAMAN. MOURAD ([email protected]) AND CEM ([email protected]) HAVE A STRONG FOCUS ON LAW & TECHNOLOGY WITHIN RSM NETHERLANDS BUSINESS CONSULTING SERVICES.   

The Chess game

In today's interconnected world, the impact of geopolitics on businesses has reached unprecedented levels. CEOs are finding themselves navigating a complex geopolitical landscape that moves at an accelerated pace, leaving little time to react to rapidly changing circumstances. Morris Chang, the 91-year-old founder of Taiwan Semiconductor Manufacturing Company (TSMC), delivered a sombre speech at a speaking event of TSMC's new factory in Arizona. Chang spoke of the geopolitical tensions and trade war between the United States and China, suggesting that globalization and free trade were “almost dead”.

The chip war between the US and China is likened to a game of chess, where each side tries to conquer the other side through strategic play. The US is gradually cutting off China's access to advanced semiconductor technology, which is crucial for economic and military progress. Biden is strategically manoeuvring companies like chess pieces to strengthen American chip production and reduce reliance on foreign suppliers, particularly in China.

The US has imposed restrictions on companies like Nvidia & Tokyo Electron and there are discussions of an export ban on advanced machines from ASML, a Dutch lithography equipment manufacturer. The objective of the US is to sustain its leadership in the semiconductor industry, where chip manufacturing is primarily dominated by Taiwan, South Korea, and the US, and lithography equipment is led by the US, Japan, and the Netherlands. China's potential escape routes from this encirclement include developing its own advanced chip industry, increasing its market share in older chips, or invading Taiwan, which is a major player in chip manufacturing. However, China faces significant challenges in catching up with the technological gap and overcoming the dependencies on foreign suppliers. Another concern is the possibility of a raw materials embargo by China, as it controls the production of crucial metals required for chip manufacturing and other industries. Such an embargo would have severe consequences, including price increases and global shortages of various products.

Adapting to Today's Changing Landscape

The increasing dynamics and interconnectedness of the 21st-century world have amplified the impact of geopolitics on businesses. In the past, high-level political decisions took months or even years to materialize, allowing companies to have time to react. Today, politics moves at the speed of (social) media, with opinions shifting and shaping in a matter of hours. This accelerated pace leaves CEOs with limited time to respond effectively and protect their businesses. Furthermore, CEOs are now viewed as significant actors, with companies often wielding more economic influence than some countries. They are expected to take public positions on politicized issues. CEOs must embrace specialized insights and stress-testing tools to effectively navigate the uncertainties of the geopolitical landscape.


To successfully navigate today's geopolitical uncertainties, companies are implementing proactive strategies. Three key responses are highlighted: appointing a Chief Geopolitical Officer, conducting geopolitical stress tests, and implementing a geopolitical forecasting and monitoring practice.

  1. Appointing a Chief Geopolitical Officer is crucial for managing the impact of geopolitics on a company's business interests. The goal is to ensure that politics is integrated into strategic decision-making, risk management, and public relations.
  2. Conducting a geopolitical stress test allows companies to evaluate their exposure to geopolitical developments and assess resilience. By modelling various scenarios and their potential impact, businesses can better understand their vulnerabilities and develop contingency plans.
  3. Implementing a geopolitical forecasting and monitoring practise enables companies to move beyond relying on media for information. Specialized geopolitical insights and analysis with a deeper understanding of geopolitical developments and their business implications is the goal. This approach ensures that decision-makers have access to high-quality geopolitical intelligence, similar to other critical business data.

Is Your Business Wired for Geopolitical Change?

At RSM, we recognise the increasing influence of geopolitics for (international) businesses and that implementing proactive strategies are essential for businesses to thrive in today's environment. Businesses must view themselves as takers of political risk and opportunities. By integrating geopolitics into your operational and financial business model, businesses can enhance resilience and capitalize on opportunities.

Concluding remarks

In today's hyper-connected global landscape, businesses are confronting an unparalleled array of geopolitical challenges, necessitating strategic thought leadership. As seasoned strategy experts, we underscore the critical importance of a proactive approach for CEOs and companies in successfully navigating this rapidly evolving geopolitical terrain. By appointing a Chief Geopolitical Officer, businesses demonstrate their unwavering commitment to integrating political factors seamlessly into crucial aspects of their operations, including strategic decision-making, risk management, and public relations.

However, mere integration is not enough to weather the complexities of the geopolitical landscape. To fortify their position, companies must employ thorough geopolitical stress tests. These tests empower organizations to identify vulnerabilities, assess potential risks, and develop robust contingency plans, ensuring resilience amidst geopolitical uncertainties. Armed with this foresight, decision-makers can take proactive actions and allocate resources strategically to mitigate potential impacts, enhancing the company's adaptability in the face of geopolitical shocks.

To truly excel in this dynamic environment, leaders must harness specialized geopolitical insights and advanced forecasting practices. By staying well-informed and anticipating challenges, businesses gain a competitive edge, allowing them to seize opportunities and position themselves ahead of competitors. This approach embodies genuine thought leadership - one that is proactive, agile, and equipped to thrive amid the ever-changing geopolitical chess game. Yet, true thought leadership transcends organizational borders and embraces responsible business practices that foster collaboration. 

As businesses adopt this holistic approach, they position themselves at the forefront of the rapidly evolving global chess game. Embracing true thought leadership, they drive sustainable growth and secure their place as frontrunners in an ever-changing world, where geopolitics and business intricately intertwine.