Geopolitical conflict is increasingly influencing corporate decision making, disrupting operations and creating new challenges for workforce safety and the duty of care, according to the 2027 Risk Radar Report from Healix, a risk management provider. The report revealed that geopolitical conflict “is increasingly moving from the headlines into the boardroom and reshaping how organizations manage people, operations and risk.”
The global survey found that 58% of organizations have experienced moderate, significant or ongoing pressure to take a position or make decisions in response to geopolitical conflict, highlighting how difficult it is becoming for businesses to remain on the sidelines as geopolitical developments shape corporate priorities.
Geopolitical risk is no longer confined to the regions where conflict occurs, nor are its consequences. Almost all (92%) organizations operate in or send employees to regions affected by geopolitical instability or conflict, while nearly two-thirds have experienced noticeable, major, severe or paralyzing operational impacts from geopolitical conflict over the past two years.
When asked about the potential impacts of geopolitical conflict over the next year, travel disruption and restrictions ranked as the leading concern (18%), followed by cyber threats (16%), rising energy prices (15%) and supply chain disruption (14%).
The impact is already being felt by employees and travelers. Over the past 12 months:
- 48% of organizations experienced travel disruption;
- 36% reported employee safety incidents;
- 32% carried out employee evacuations or relocations.
James Henderson, CEO, said: “Geopolitical events no longer stop at national borders. They now reach into boardrooms, workplaces and supply chains around the world. As the line between geopolitics and business continues to blur, organizations need the visibility, intelligence and confidence to make decisions under pressure. Understanding exposure, anticipating potential impacts and having the right intelligence and processes in place can make the difference between disruption and resilience.”