More organisations are re-evaluating their supply chains and business strategies to prepare for growing geopolitical risks, according to Airmic’s latest Big Question survey.

Donald Trump’s return to the White House, and turmoil in tech stocks resulting from the arrival on the AI scene of China’s market-rocking DeepSeek technology are just two of the latest developments exacerbating geopolitical rivalries between the two superpowers, but with ramifications for organisations around the globe.

In answer to Airmic's question: How is your organisation preparing for geopolitical risk this year?, 41% said they conducted increased political risk due diligence; 22% said they were reviewing supply chains, and 11% were reviewing their business strategy.

Julia Graham, CEO of Airmic, said: “The developments around DeepSeek once again highlight the interconnected nature of geopolitical risk, where the launch of an AI app has wreaked stock market turmoil in the US and has become top-of-mind for the new US administration. Scenario planning and horizon scanning are the keys for risk professionals and their organisations to prepare for geopolitical risk. They must resist the temptation to be events-led and retain agility for when crises may strike.

“The latest developments indicate that US sanctions on China to limit its ability to produce advanced semiconductors cutting-edge chips have been upended. US President Donald Trump called the rise of DeepSeek “a wake-up call for our industries that we need to be laser-focused on competing to win.”

Hoe-Yeong Loke, head of research at Airmic, added: “The developments around the DeepSeek app could spark ever more aggressive trade sanctions and barriers from the Trump administration on China. Risk professionals and their organisations need to prepare for a series of retaliatory tariffs not unlike the trade war between China and the US during the first Trump administration.”

Respondents to the Airmic Big Question survey also said they are continuing to monitor the impacts on the UK economy, including potential supplier risk rising from geopolitical risks, to ensure a deeper understanding of the dynamic global landscape.

Leigh-Anne Slade, head of media, communications and Interest Groups, commented: “Besides the latest geopolitical developments, regulatory governance frameworks such as the Task Force on Climate-Related Financial Disclosures and the Corporate Sustainability Reporting Directive mean Airmic members need full visibility of their organisation’s supply chains. This will support their organisation’s planning for strategy and risk mitigation, by identifying areas of high dependency and risk.”

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