Inside the Strategy Room

230. How boards can tackle geopolitical risk

Dec 19, 2024

Dominic Barton, board chair for Rio Tinto and former Canadian ambassador to China, joins Frithjof Lund, a McKinsey senior partner in corporate governance, and Ziad Haider, a specialist in geopolitical risk. They dive into how boards can navigate complex geopolitical landscapes. The conversation highlights the importance of proactive risk management, creating dedicated units for geopolitical insights, and the evolving roles of non-executive directors. They stress the need for structured frameworks and transparency in addressing uncertainties while aligning board and executive strategies.

39:23

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Episode guests

Dominic Barton

Frithjof Lund

Ziad Haider

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Episode notes

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Quick takeaways

Corporate boards must adapt to increased geopolitical risks by engaging more deeply in discussions and dedicating more time to these critical issues.

Developing effective frameworks for understanding geopolitical risks is essential for boards to enhance strategic foresight and organizational resilience.

Deep dives

The Complexity of Geopolitical Risks for Corporate Boards

Corporate boards are increasingly encountering complex geopolitical risks that differ from traditional performance metrics and strategies. This complexity arises from varying views, emotions, and perspectives that influence how these risks are perceived and addressed. As geopolitical matters become more intertwined with business operations, boards must adapt to engage more deeply in these discussions, leading to longer hours dedicated to board activities. The integration of these geopolitical considerations into board agendas reflects a significant change, requiring members to be more informed and proactive.

Intro

2min

Navigating Geopolitical Complexity in Corporate Boards

11min

Evolving Preparedness and Engagement of Non-Executive Directors

2min

Navigating Geopolitical Risks in Corporations

4min

Navigating Geopolitical Risks: The Evolving Role of Corporate Boards

13min

Navigating Geopolitical Risks: Strategic Insights for Boards

4min

Navigating Openness in Geopolitical Risk Management

2min

Closing Thoughts and Listener Engagement

2min

Corporate boards face increased complexity today, with heightened geopolitical risk key among the concerns they must consider as they guide the companies they serve. In this episode, three experts on boards and geopolitics discuss how boards can best adapt to this new normal. Dominic Barton is board chair for the metals and mining company Rio Tinto, and also for the impact investment firm Leapfrog investments. He's also a senior advisor and partner at the AI investment firm Radical Ventures. Previously, Dom served as Canada’s ambassador to China. And before that he was a McKinsey senior partner who served as our global managing partner for three terms. Frithjof Lund is a senior partner who leads our Board Services Practice as well as our Norway office. He helps boards of directors improve corporate governance. Ziad Haider is a partner and our global director of geopolitical risk. He is based in our Singapore office, and counsels CXOs and boards on how to build out their capabilities to better understand, monitor, and mitigate geopolitical risk.

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