Strategic Focus: Navigating Supply Chain Risk Amid Geopolitical Decoupling
25 Jul, 2025
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Executive Summary
Geopolitical risks have escalated dramatically in the last three years, particularly decoupling between major economies and organizations. As decoupling is happening faster, and in more ways than many anticipated, it is inducing a myriad of operational risks for firms with supply chains extending overseas. This report examines the drivers of decoupling and the strategies to overcome its effects on supply chains. Moreover, it looks to the emergence of supplier intelligence frameworks, real-time intelligence feeds and process intelligence software as potential solutions.Geopolitical decoupling is a growing and multifaceted problem
Firms must build supply chain risk strategies around the drivers of geopolitical decoupling
Geopolitical decoupling will cause hidden risks to emerge, hitting outdated mitigation strategies the hardest
Long-term strategic overhauls must look beyond the silo
Figure 1. Supply chain risk and the drivers of geopolitical decoupling
Figure 2. Hidden risks from outdated mitigation strategies
About the Authors
Tom Murphy
Analyst
Tom is an analyst at Verdantix, specializing in third-party, GRC, reputational and geopolitical risk. His current research agenda focuses on how organizations can insulate the…
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Katelyn Johnson
Senior Manager
Katelyn is a Senior Manager at Verdantix, specializing in enterprise risk management and external risk and resilience. She helps executives navigate today’s evolving ris…
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