Core Insights - The international trade landscape has been significantly altered in 2025 due to U.S. tariff deals, with national security alignments becoming crucial for global businesses [1][2] - The latest Political Risk Index by Willis aims to help firms navigate the complexities of tariff geopolitics [1][2] Trade Dynamics - The U.S. is requiring trading partners to align with its national security interests, or face economic penalties, reshaping the global trade environment [2][6] - The West is losing influence in Africa, as many countries are realigning towards Russia and other non-Western partners due to reduced U.S. aid and trade preferences [2][6] Strategic Implications for Companies - Companies must integrate tariff management into their core strategic planning rather than treating it as a compliance issue [3][6] - Tariff deals are creating a "moat" around the West, with requirements for signatories to comply with U.S. national security policies, affecting supply chain adaptability [6] Geopolitical Realignments - Countries like Vietnam, Cambodia, and Ecuador have aligned with the Western bloc, while major economies such as Brazil, India, and South Africa remain uncertain in their alignment [6] - Tariff pressures have led to limited retaliation, with only China and Canada significantly responding to the 2025 tariffs [6] Competitive Landscape - Initial reactions to tariffs in countries like Brazil and Indonesia have shifted from outrage to competition, as governments seek to negotiate favorable tariff rates to attract investment [6]

Core Insights - Aon's 2025 Global Risk Management Survey reveals a significant shift in global business risks, with geopolitical volatility entering the top ten for the first time, indicating heightened concerns about market instability and regulatory changes [2][3] Group 1: Survey Findings - The survey includes responses from nearly 3,000 executives and risk professionals across 63 countries, showing a notable rise in geopolitical volatility, which increased 12 places since the 2023 survey [3] - Despite the prominence of geopolitical risks, only 14% of organizations track their exposure to the top ten risks, and just 19% utilize analytics to assess their insurance program effectiveness, highlighting a gap in proactive risk management [4] Group 2: Cybersecurity and Workforce Risks - Cybersecurity remains the top concern in Aon's rankings, with the complexity of cyber risks being unprecedented; however, only 13% of organizations have quantified their cyber exposure, leading to underinsurance and financial vulnerability [5] - Workforce-related risks have declined in the rankings, falling out of the top ten, but this does not diminish their importance as they are interconnected with other risks like cyber threats and supply chain disruptions [6][7] Group 3: Future Risk Landscape - Looking ahead to 2028, cyber risk continues to lead, while artificial intelligence and climate change have emerged in the top ten for the first time, indicating rapid changes in the risk landscape [8] - The convergence of technology, geopolitics, and environmental pressures necessitates that organizations adopt flexible strategies to enhance resilience [9] Group 4: Strategic Implications - Aon emphasizes that risks are increasingly interconnected, requiring organizations to embed resilience across all functions and view risk management as a competitive advantage rather than merely a protective measure [10]