The International Risks of a Permacrisis
The global business environment is marked by overlapping and continuous crises, a situation referred to as “permacrisis.” This state is defined by a confluence of geopolitical tensions, war, economic volatility, misinformation, extremism, supply chain disruptions, democracy decline, and the climate crisis. For businesses, this means operating under constant volatility, requiring heightened agility and strategic foresight. Factors like the war in Ukraine, US-China tensions, and cybersecurity threats all contribute to ongoing disruptions, pushing companies to adapt continuously to survive and thrive in this new normal. Resilience and long-term planning have never been more critical for CEOs, executives, and boards.
In today’s volatile landscape, businesses are navigating a range of interconnected crises, from geopolitical instability to economic disruptions and the enduring effects of the pandemic. Supply chains are under unprecedented stress, requiring companies to rethink their operational strategies. CEOs must now contend with more frequent shocks, as the boundaries between political, economic, and technological risks blur. Flexibility, adaptive leadership, and proactive risk management have become the linchpins for sustaining business continuity and growth, with increasing numbers of business leaders having a Strategic Advisor as part of their inner circle.
The rising tension between global powers, particularly the US and China, as well as the emergence of the BRICS+ poses both challenges and opportunities for businesses operating across borders. Trade restrictions, tariffs, and regulatory divergence create unpredictability, while technological decoupling adds further complexity. As regional blocks further separate their technology ecosystems, particularly in key sectors like semiconductors, telecommunications, and artificial intelligence, business leaders must navigate this landscape by reassessing supply chain dependencies, operational needs, and aligning investments with geopolitical realities. Maintaining a balanced approach, especially in critical sectors like technology and energy, is crucial to mitigating risks associated with geopolitical shifts.
Businesses Need to Adapt to the Permacrisis
In this era of permacrisis, companies need to shift from reactive strategies to proactive resilience planning. The interconnected nature of global challenges demands that businesses adopt a long-term view, investing in technologies, operations, and human capital that can withstand disruptions. This means that CEOs must prioritize strategic agility, diversifying supply chains, and embracing digital transformation. These moves will enable them to weather short-term shocks while positioning for sustainable growth in an unpredictable environment.
The most successful businesses are vigilant against emerging threats. Companies are no longer just managing traditional business risks; they are confronting new and sophisticated threats that demand enhanced preparedness. Organised crime and state-sponsored threats have become a critical concern for most large enterprises. Coupled with the growing urgency of sustainability, companies are being pushed to align risk management frameworks with environmental, social, and governance criteria, to ensure resilience in the face of multiple, converging crises. CEOs and boards who can navigate these complexities, prioritize long-term resilience, and incorporate strategic foresight will be the ones who turn this permacrisis into a competitive advantage.
