Good governance is the antidote to market chaos

As frequent geopolitical incidents ramp up pressure on businesses globally, boards must ensure they possess the resilience to respond.

International conflicts, a teetering energy market, and tariff-driven supply chain headaches have all contributed to a landscape of corporate chaos, with many organisations making difficult decisions in attempts to adapt. For example, 71% of CEOs plan to alter their supply chains in the next 3-5 years, up from 45% the previous year, outlining the extent of the changes necessary to remain competitive.

According to Ciaran Bollard, CEO of The Corporate Governance Institute, agility is the most effective response to market turbulence, which can be achieved by ensuring the tools, skills and people are in place to handle incidents of any nature.

Bollard said: “The age of chaos has arrived, and it’s not going away. No matter where you look, things have been getting more heated, more polarised, more pressured. Corporate leaders, like boards and executives, may have done what they could to avoid it, but five years into one of the most disruptive decades in business, it’s obvious that chaos is the new reality.

“This turmoil is coming from all directions. Some generations haven’t seen anything like it before; the ones that have probably haven’t seen it since the Cold War. Yet here we are, amid a massive fracturing of global relationships, rising populism and nationalism, wars, tariffs, supply chain crises, and priorities that tend to change week on week.

“The result is global unpredictability that businesses can no longer escape. They’re at the heart of a storm reshaping supply chains, driving up costs, and forcing boardrooms to rethink strategy. Regardless of the circumstances, stakeholders expect answers – and corporate leaders must deliver.

“However, preparation doesn’t mean any kind of ‘crystal ball’ tactics, trying to pinpoint the time and date of the next corporate earthquake. True preparation in governance is about capacity.

“On the ground, this means intense scenario planning and risk assessment. It also means ensuring your leadership has what it needs to cope. The outlook should be general enough that it almost doesn’t matter what crisis occurs because you have an arsenal that will help regardless.

“Crisis punishes companies that remain rigid. On paper, you might think that your business will never fall into this trap. Nonetheless, you’d be surprised at how much fear, groupthink and sheer stubbornness can prevail during times of crisis.

“To be a good leader, CEOs need to embrace flexibility – structurally, culturally, and operationally. That means being able to pivot quickly, reallocate resources fast, and make decisions with imperfect information. The more adaptable your company, the more resilient it becomes.”

Bollard concluded: “There will be further chaos. Even if the intense geopolitical standoffs of today’s world were solved tomorrow, you’re not in the clear. Being ready is the key. It won’t solve the problem, but it’s the crucial competitive advantage. And it starts with trained, adaptable leaders who bring a range of views, steady hands, and the right experience to the boardroom. You can’t control the next crisis. But you can control how ready you are for it.”

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