Geopolitics: 3 Key Points for Boards to Consider in 2026

On 31 March, Hannes Snellman and Directors’ Institute Finland organised a panel discussion on geopolitics, more specifically on what boards need to consider in terms of the changed geopolitical environment.

3 Key Points About Geopolitics Based on the Panel Discussion

1. Changed operating environment: Interaction between companies and states has changed as the operating environment for businesses has become politicised. Companies are increasingly expected to support state interests, which is evident in regulation, such as requirements for risk management.
   
2. Role of companies as political actors: The state-centric system is weakening, while business activity is increasingly seen as political. This development has become apparent in, for instance, the appointment of diplomats to executive teams of listed companies.
   
3. Risk management vs. materialised risk: Many companies still approach geopolitics from the viewpoint of risk management, even though the risk has already materialised. Boards and management should approach their strategy in terms of the current geopolitical environment.

The panel was moderated by Managing Partner Anna-Maria Tamminen, and the panellists were Partners Thomas Landell and Klaus Ilmonen from our M&A Team, alongside of Micaela Thorström, EVP, People and Legal, at Stora Enso.

We have a dedicated team that advises clients operating in the defence industry and is happy to discuss related issues.