Dear Friends,

In the last few years, we've lived through a pandemic, a land war in Europe, multiple trade wars, and more “once-in-a-generation” events than we used to see in a lifetime. Almost all had one thing in common: massive government involvement.

And yet, most CEOs still treat politics as someone else’s job.

For decades, American business leaders could afford to ignore politics. They outsourced it to lobbyists, focused on quarterly results, and assumed Washington would stay out of their way. That era is over.

The Trump tariffs made that clear. His views on trade were no secret—he’s been demanding high tariffs since 1987. Yet companies reacted with shock when he imposed them. Ford shut down a factory after China retaliated with rare earth export bans. They should’ve seen it coming. Apple did.

Apple began ramping up iPhone production in India when it foresaw that relations between the US and China could get much worse.

The real problem? Our system isn’t training leaders for this world. Of the top 10 U.S. business schools, only two require MBAs to study politics. Fewer than 2% of Fortune 500 CEOs have political science degrees. Almost none have experience in government.

But in a world where national security trumps free trade, and economic policy shifts overnight, political fluency is no longer optional.

Boards need to start evaluating CEOs on their understanding of geopolitics. Business schools must teach it. And leaders must learn—fast.

Because the biggest risks in business today don’t come from balance sheets. They come from ballot boxes.

—Gautam

Special Coverage: US Attacks Nuclear Sites in Iran

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Further Reading….

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