Strengthening Board Oversight to Navigate Geostrategic Risks

An article in Risk Management Magazine by Robyn Bew, Director of the EY Americas Center for Board Matters at Ernst & Young LLP, highlights how corporate boards are reshaping their oversight in response to rapidly evolving geostrategic risks. 

For decades, directors have operated in a relatively open global environment; however, shifts in trade, alliances, and regulation now present a more fragmented and volatile risk landscape. As Bew explains, the ability to anticipate and manage these risks is becoming a key differentiator for long-term competitiveness.

Drawing on the EY-Parthenon Geostrategy in Practice survey, Bew notes a marked increase in board engagement. In 2025, 84% of boards assessed political risk impacts on company strategy, up from 40% in 2021. Similarly, boards receiving external political risk briefings surged from 16% in 2021 to 82% in 2025, underscoring the importance of timely and high-quality intelligence.

Boards are also embedding geostrategic considerations into transactions and alliances. By 2025, 77% reported regularly factoring political risk into mergers, acquisitions, and market entry, compared to just 25% four years earlier. Directors are increasingly challenging deal assumptions, reviewing portfolios, and integrating lessons from past transactions.

Despite this progress, Bew stresses that scenario planning remains underdeveloped. Few boards report systematic oversight in this area, despite its central importance in aligning risk appetite with management and preparing for both downside threats and upside opportunities.

Risk managers should note that boards are shifting from a reactive to a proactive approach to governance of geostrategic risks. As global volatility persists, directors who integrate rigorous analysis, active debate, and forward-looking scenario planning into oversight will be better positioned to safeguard resilience and identify growth opportunities.