By Dr. Wilson Chew
Trade risks are structural forces that can redefine competitive advantage.
Well-prepared boards treat external disruptions as recurring features of the business environment to be anticipated, managed and embedded into strategic planning.
Abstract
Trade risks are no longer episodic disruptions. They have become structural forces that can redefine competitive advantage. The recent escalation in US tariffs and the uncertain direction of global trade policy highlight an uncomfortable truth: Trade risks have become a strategic concern that boards can no longer afford to treat as peripheral.
With unpredictable tariffs, retaliatory trade measures and an increasingly fragmented global supply system, trade policy shocks are starting to render traditional strategic plans obsolete.
With such far-reaching impact, boards should identify ways that enable their companies to adapt to and thrive in the face of trade risks. Well-prepared boards treat external disruptions like tariffs not as one-off crises, but as recurring features of the business environment to be anticipated, managed and embedded into strategic planning.
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