# Geopolitical risk and business strategy: a conversation with Charles Salvaudon **Authors:** Adeline Bertin **Categories:** News **Tags:** business, Companies **Last Updated:** 2026-05-27T09:54:50.967Z **Reading Time:** 6 min read --- ## Summary Geopolitics is no longer a backdrop. It shapes every business decision. Charles Salvaudon, author of "Understanding the World to Make Better Decisions", explains why all companies, regardless of size, must integrate geopolitical risk into their strategy to survive and compete. --- # Interview: Charles Salvaudon [Charles Salvaudon](https://www.linkedin.com/in/dr-charles-pierre-salvaudon-d-audiffret-42a53913/), author of *Understanding the World to Make Better Decisions* (L'Harmattan, February 2026), shares why geopolitics has become a core strategic concern for every company, and how leaders can build the frameworks to navigate it. He will participate in a [discussion on Monday, June 1st at Albert School](https://www.albertschool.com/events/business-breakfast----geopolitics-for-business), on the place of geopolitics in business, drawing on his book. --- #### Your latest book sets out to help companies navigate an increasingly complex global environment. What prompted you to write it, and what core problem were you trying to address? I wrote this book because I observed a growing gap between the complexity of the world and the tools companies use to understand it. Executives are increasingly confronted with geopolitical disruptions, like wars, sanctions, regulatory fragmentation, but they often lack a practical framework to integrate these dynamics into decision-making. My objective was not to produce another academic essay, but to **build an operational method**: something concrete, usable, and directly applicable in boardrooms. --- #### Which kinds of companies does this concern? And does a company need to operate internationally to be exposed to geopolitical risk, or has that risk now become universal? All companies are now concerned: small businesses, mid-sized firms, and large corporations alike. You no longer need to operate internationally to face geopolitical risks. A local company in Abidjan, Paris, or Milan can be impacted by global supply chain disruptions, currency volatility, political instability, or regulatory changes driven by international tensions. **Geopolitics has become systemic.** It affects everyone. --- #### You argue that "the world is now entering companies." What do you mean by that, and when did this shift begin? Did the Covid-19 pandemic accelerate it? Traditionally, companies expanded into the world. Today, the reverse is happening: the world, its crises, conflicts, and power struggles, is entering companies directly. This shift started in the early 2000s with globalization, but **it accelerated dramatically with the COVID-19 pandemic**, which exposed the fragility of supply chains, the importance of state decisions, and the interdependence of economies. Covid was not the origin but it was a powerful accelerator. --- #### What can we learn from companies like TotalEnergies or TSMC that have already had to contend with geopolitical constraints, including international sanctions? Companies like TotalEnergies or TSMC show that geopolitics is not theoretical: it is operational. TotalEnergies has had to navigate sanctions, conflicts, and energy diplomacy. TSMC sits at the heart of global tensions around semiconductors and Taiwan. The key lesson: **companies must anticipate geopolitical risk, not just react to it.** --- #### For a company that is new to all of this, what would be the first concrete step toward integrating geopolitical risk into its strategy? The first step is awareness: recognizing that geopolitics is not external, but strategic. Then, concretely: 1. Map your exposures (suppliers, markets, regulations) 2. Identify critical dependencies 3. Integrate geopolitical scenarios into decision-making processes Start simple, but start. --- #### You write that operational geopolitics is not about predicting a single future, but about mapping several possible ones. How does this approach lead to better decisions in practice, in the context of tensions around Iran, for instance? Operational geopolitics is not about predicting *one* future, **it is about preparing for *several plausible futures***. For example, with tensions involving Iran: - **Scenario 1:** Escalation and sanctions - **Scenario 2:** Diplomatic stabilization - **Scenario 3:** Regional spill over A company that prepares for multiple outcomes is more resilient and faster in adapting. --- #### What role does data play in understanding and anticipating geopolitical risk? Do companies today have the tools and the expertise to use it effectively? Data is essential, but not enough. Companies have access to massive amounts of data, but often lack the analytical frameworks to interpret it geopolitically. The challenge is not data scarcity, it is meaning. **This requires hybrid skills: combining data analysis with geopolitical understanding.** --- #### How would you characterize Europe's position in this shifting geopolitical landscape? Europe is at a strategic crossroads. It is economically powerful but politically fragmented, and increasingly caught between major powers like the US and China. Europe must **strengthen its strategic autonomy while maintaining alliances.** For companies, this creates both risks and opportunities, especially in regulation and industrial policy. --- #### You recommend creating a Chief Geopolitical Officer role, alongside teams that bring together geopolitics, risk management, and competitive intelligence. Do such roles already exist? And if not, do companies have the skills in-house, or is more training needed? This role is still emerging. Some companies already have elements of it through risk, strategy, or intelligence teams, but rarely in a unified form. There is a clear need for new skills and training. **Geopolitics must become a structured function at top-down and at bottom-up level**, not an occasional concern. In the meantime, this role is just an organizational function managing the geopolitical culture and process within the company. But it is not enough. The people in front line must be trained to identify and anticipate geopolitical crisis. --- #### Could you briefly walk us through your six-dimensional framework? Most companies already use frameworks to assess financial, operational, or legal risk. Such tools are useful but incomplete. I propose **a six-dimensional framework** to analyze geopolitical risk: 1. Political 2. Economic 3. Social 4. Technological 5. Environmental 6. Legal This allows companies to capture the full complexity of a situation, rather than focusing on a single variable. --- #### Your approach demands deep background knowledge and access to reliable, up-to-date information. Given that such information is not always readily available in every country, how can companies manage that gap in practice? This is a real challenge. Companies must diversify sources: **local networks, field intelligence, partnerships with experts or cross-checking information.** Uncertainty cannot be eliminated but it can be managed. --- #### You write that companies are becoming political actors, whether they choose to be or not. What does that look like in concrete terms? Companies are becoming political actors because **their decisions now have political consequences.** For example: choosing a supplier can have diplomatic implications, or taking a stance on a conflict can impact reputation and regulation. Companies that refuse to acknowledge this risk losing control of their environment. --- #### What is the one takeaway you would leave with decision-makers? The world is no longer a backdrop, it is a force that shapes every decision. Those who integrate geopolitics into their strategy will not only avoid risks. They will gain a **decisive competitive advantage.** Understanding the world is no longer optional: it is a condition for survival and success. [![Comment-comprendre-le-monde-pour-mieux-de-cider.jpg](https://i.postimg.cc/tgG1X1p8/Comment-comprendre-le-monde-pour-mieux-de-cider.jpg)](https://postimg.cc/pmkVCL9B) *[Comment comprendre le monde pour mieux décider, Charles Salvaudon (L'Harmattan, 2026)](https://www.editions-harmattan.fr/catalogue/livre/comment-comprendre-le-monde-pour-mieux-decider/82408#:~:text=%C3%80%20travers%20une%20analyse%20limpide,les%20dirigeants%20du%20XXIe%20si%C3%A8cle.)* ## Key Takeaways 1. Geopolitics is now universal. Every company, regardless of size or sector, is exposed to geopolitical risk, whether it operates internationally or not. 2. Operational geopolitics is not about forecasting a single future, but preparing for several plausible ones to build resilience. 3. Companies are political actors, whether they like it or not. Every strategic decision, from choosing a supplier to taking a public stance, now carries political consequences. 4. Companies no longer expand into the world; the world, its crises and power struggles, now enters companies directly. 5. Geopolitical risk must be integrated into strategy before a crisis hits, not after. --- *Article from [Albert's Deep Dive](https://deepdive.albertschool.com) - Albert School's Journal*