The year 2025 was defined by tariff volatility, supply-chain fragmentation, ongoing conflicts and technological competition, all of which are reshaping the foundations of international trade and investment. Despite increasing awareness shaped by COVID-19, the war in Ukraine, Red Sea shipping attacks and the escalating rivalry between the US and China, the speed and scale of change have caught even the most resilient firms off-guard.

Building Geopolitical Muscle: How Companies Turn Insights into Strategic Advantage is the third in a series developed by Boston Consulting Group, IMD Business School and the World Economic Forum. The paper offers a practical guide for business leaders seeking to build their geopolitical muscle – that is, the capability to sense, plan and respond systematically to geopolitical dynamics. At its best, geopolitical muscle does more than mitigate risk; it enhances reputation and brand value, opens the door to strategic opportunities, deepens global policy engagement and strengthens an organization’s commercial positioning by informing business strategy.

Drawing on more than 55 interviews with senior executives from multinationals at the frontline of geopolitics – along with nine case studies across sectors, from healthcare and insurance to automotive and mining – the paper demonstrates how to translate corporate awareness into business action.