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Corporations Must Increasingly Take Into Account Geopoliticial Risks, MIT Sloan Says

Geopolitics, including sanctions and export controls, is increasingly becoming an agenda item for the corporate boardroom, according to professors at the Massachusetts Institute of Technology Sloan School of Management. They said more companies need to build “a geopolitical calculus” into their business strategy, secure and diversify their supply chains to hedge against new trade restrictions, and guard against “adversarial capital,” such as investors “aligned with adversarial states.” Governments are “increasingly focused on protecting startups from such threats -- which underscores the importance of working with trusted partners and funds that understand the security implications of frontier technologies.”

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“Tariffs, sanctions, export controls, and industrial policies now shape how companies choose markets, build supply chains, and even hire talent,” MIT Sloan said in an Oct. 15 post quoting Fiona Murray, associate dean of innovation, and Phil Budden, a senior lecturer. “This new reality has made geopolitics a central factor in innovation, pushing companies and startups to weigh political and policy risk alongside technological opportunity.”