Leadership
The Whiplash Government Playbook
With a rising number of quick-shifting global leaders at their helms, businesses are learning how to operate in new territory.
September 11, 2025
How Companies Navigate New Governments
Working on a corporate government-affairs team might be one of the world’s hardest jobs right now. One minute you’re reading an alert about a new tax; the next, you’re hearing a tariff has changed from 20% to 10%. By noon, possibly you’ve learned of dozens of regulatory updates or shifts.
But while policy gurus may be used to such a frenzied pace, CEOs and directors are not —and must learn how to navigate a new kind of political terrain: one where the rules shift quickly, the messaging often isn’t clear, and companies are factoring geopolitical risk into their operations much more than before. “There’s this yo-yo effect,” says Nels Olson, vice chairman and global leader of Korn Ferry’s Government Affairs practice. “One day we’re doing something, and the next day we’re not.”
Governments that challenge many mainstream notions have gone, well, mainstream. According to one study, more than 25% of nations today have governments that score high on populist rhetoric or policies. For boards and CEOs, the result is a shift in the risk landscape. Indeed, in a new Korn Ferry CEO and Board Services survey, 63% of respondents said their organization’s risk has risen this year. Yet only 7% report feeling “extremely confident” in their firm’s ability to manage it. “Boards have to become much more savvy politically,” says Dominic Schofield, managing partner of CEO and Board Services at Korn Ferry in London. “Many directors over here know a bit, but need to dig in to truly understand how government politics work.”
Here are three ways leaders can better navigate today's political landscape:
Move on From Regulatory Whiplash
Electric-vehicle policies in India that cut import duties. US tariffs on Canada and Mexico. Deforestation regulation in the European Union.
These are all examples of U-turns governments have made this year—sometimes with little warning. Such whiplash can lead to hesitation in making decisions, not to mention putting out company forecasts. After all, who wants to reconfigure a supply chain, only to have to redo it again—while also predicting how that will affect the bottom line?
But as some normalization starts to occur, it’s critical for companies to move forward with their plans. “CEOs are so worried about making the wrong decision, but making no decision is just as risky,” says Claudia Pici Morris, co-lead of Korn Ferry’s Board Succession practice.
Stay Apprised of Trade—and Talent—Barriers
For many multinational companies, limiting imports or succumbing to tariffs is risky in and of itself. But there’s another kind of risk at play when new regimes adopt policies that can make it harder to retain and recruit global talent. “Historically, we’ve not been very good at selecting talent that’s agile and can adapt to changing circumstances,” says Dennis Carey, vice chairman at Korn Ferry.
Experts say it’s important to beef up local talent pipelines or upskill current team members to reduce reliance on talent from other countries. A critical part of doing this is recognizing the traits and skills needed not just now, but in years to come.
Scenario Plan Like Never Before
Political risk used to be a stand-alone risk. And while it still is, companies are also layering it into nearly every strategic decision and scenario plan. When in doubt, consider bringing on a new board member or outside advisor who’s adept at dealing with all types of government agencies. “Advisors who are close to what’s happening can give companies insights about whether something is a big issue, or if it’s posturing for the media,” Morris says. “It’s important for leaders to separate the noise from the trends, so they can make smart decisions.”
For more on geopolitical risk, dig into Korn Ferry’s CEO and Board Risky Business survey.
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