Governance in a Multipolar World

How shifting power dynamics are reshaping global governance standards

and influencing corporate strategy

As global power structures evolve, boards must adapt
to an increasingly complex and multipolar world.

With emerging economies like China, India, and the broader BRICS+ nations playing larger roles on the world stage, governance standards and expectations are shifting rapidly. This session will examine how these geopolitical shifts are influencing regulatory environments, investment flows,
and corporate decision-making.

Join GCC BDI, Good Governance Academy and our panel of experts to explore:

The strategic implications of rising multipolar influence on global governance.
How boards can navigate divergent regulatory and cultural frameworks.
The impact of geopolitical realignments on risk management and stakeholder engagement.
Opportunities for leadership in a fragmented global environment.

Background information

As global power structures continue to shift, boards and executive leaders face mounting complexity in navigating governance across diverse geopolitical landscapes.

The rise of BRICS+ nations and other emerging economies is redefining global influence, regulatory expectations, and investment flows—challenging traditional governance models and calling for new strategic approaches.

Join for an insightful webinar exploring the implications of a multipolar world on corporate governance, risk oversight, and stakeholder engagement. This session will unpack the critical questions boards must consider as they operate across increasingly fragmented and dynamic global environments.

Explainer video

Questions and Answers

1. What are the key "megatrends" impacting global governance and business today?

According to Dr. Andrea Bonime-Blanc, there are five major “megatrends” or “tectonic changes” affecting day-to-day and strategic work:

Geopolitical tectonic shifts rupturing: This refers to deep and increasingly disruptive changes in global power dynamics, with more conflicts taking place regionally and internationally than in previous years. It includes concerns about a potential shift to a multipolar world, tariff wars, supply chain dilemmas, and uncertainty regarding the rule of law.
Leadership trust recession: There is a demonstrated long-term decline in trust across various institutions globally, including government, media, NGOs, and businesses. While businesses and employers have fared relatively better, the overall trend is a decrease in stakeholder trust.
Exponential technology unfettered: The rapid and largely unregulated explosion of technologies like AI, neurotechnology, robotics, climate tech, blockchain, and cybersecurity is turbocharging changes across all sectors, profoundly influencing internal politics and geopolitics.
Socio-ecological poly-risks and tipping points: This megatrend highlights the interconnectedness of climate change, biodiversity degradation, and their severe impacts on societies, leading to issues like voluntary and involuntary migration and affecting talent pools. Scientists also warn of potential irreversible “climate tipping points.”
Stakeholder capitalism metamorphosing: The concept of stakeholder capitalism is evolving amidst debates and politicisation of ESG (Environmental, Social, and Governance) issues, particularly in the US. This creates uncertainty about the future direction of economic models, ranging from market capitalism to state capitalism.

2. How are these global megatrends affecting boards of directors, particularly in the GCC region?

Dr. Markus Wiesner highlights several pressure points for boards in the GCC region that directly connect with the global megatrends:

AI Implications: Boards are increasingly focused on how AI shapes business strategy and their own operations. The shift towards AI has even changed board composition, with more tech and AI experts being appointed, sometimes surpassing traditional financial professionals.
Regulatory and Statutory Uncertainty: Global geopolitical shifts and new governance structures lead to uncertainty in regulations. There’s an increasing focus on regulating AI ethics and a constant evolution of laws, such as Saudi Arabia’s new company’s law, which significantly increases liability for board members.
ESG Shifts: While ESG remains relevant, especially the environmental component in the carbon-driven GCC region, its focus has somewhat shifted towards AI. Societal changes in countries like Saudi Arabia also impact stakeholders and business potential.
Board Dysfunctionality and Diversity: Despite high self-regard, many boards struggle with internal dynamics. The GCC region specifically lags globally in gender diversity, international representation, and the inclusion of non-industry experts, which can hinder effective decision-making.

3. What are the key "ruptures" in geopolitics, and what are their implications for businesses?

Dr. Andrea Bonime-Blanc notes that geopolitical shifts are deepening into “ruptures,” particularly with the dramatic change in course from the US administration. Key ruptures and their implications include:

Increased Conflicts: More local, regional, and international conflicts are taking place across Europe (Ukraine-Russia), the Middle East and Gulf, and simmering tensions between China-Taiwan-U.S.
Shifting Alliances and Trust: The US is viewed as increasingly unreliable by long-time allies, impacting relationships within NATO, between the US and the EU, and globally. Middle-income countries, in particular, show less regard for the US compared to high-income countries.
Economic Repercussions: Geopolitical ruptures lead to tariff wars, inflation, pricing volatility, and significant dilemmas in supply chains and sourcing.
Rule of Law Uncertainty: Businesses face increasing uncertainty regarding the rule of law, depending on where they operate, alongside concerns for individual liberties.
Internal Domestic Political Disruption: Democracies, including the US, are experiencing dire changes characterised by polarisation, politicisation, misinformation, and disinformation, often turbo-charged by exponential technologies.

These ruptures demand that businesses adopt “situational awareness” and engage in “strategic foresight” to navigate unpredictability and identify opportunities amidst the risks.

4. What is the role of technology, especially AI, in these global megatrends?

Exponential technology, particularly AI, plays a crucial and multifaceted role across the megatrends:

Turbocharging Changes: AI and other exponential technologies amplify and accelerate existing changes, especially concerning disinformation and misinformation in internal politics and geopolitics.
Geopolitical Race: There’s a significant geopolitical race in technology development, notably between China and the US, with other centres like the Gulf countries also emerging as key players.
Business Transformation: Boards and governance professionals must become “AI-ready” and “AI-savvy” to understand how these technologies impact their company’s footprint. This includes considering four frontiers of exponential technology: biological (neurotechnology), mechanical (robotics/automation), planetary (climate tech), and virtual (AI, blockchain, fintech, cybersecurity).
Enhanced Governance: Technology offers opportunities for enhanced governance. For example, IHC in Abu Dhabi has implemented an AI board member (“Aid and Insight”) to provide real-time support for decision-making during board meetings, demonstrating a forward-looking approach to integrating AI into governance.

5. How can boards and businesses build "sustainable resilience" and "future-proof" themselves in this volatile environment?

Dr. Andrea Bonime-Blanc emphasises that understanding the big picture context, or “situational awareness,” is crucial for building sustainable resilience and future-proofing:

Situational Awareness: Businesses must recognise their interconnectedness globally, even those with a seemingly domestic footprint, due to supply chains, customers, and other international links. This military term applies directly to business decision-making.
Long-Term Strategy and Tactics: Sustainable resilience involves creating long-term plans, strategies, and tactics to protect current assets and stakeholders, prepare for the future, and adapt to intense changes. It’s about “sticking around” and adapting, not just “sustainability as a nice thing to do.”
Scenario Planning: Future-proofing requires clear-eyed scenario planning to assess possibilities and extreme disruptions. Boards need to consider how their business will fare over 1 to 5 years and develop tactical and strategic foresight.
Leveraging Opportunities: Volatile times, though unpredictable, also present significant opportunities. Boards and business leaders must look at the “flip side of risk” to identify these.
Proactive Strategic Oversight: Board members must engage in proactive strategic oversight, demanding robust structures for enterprise risk management, compliance, and regulatory adherence from executive teams. This includes bringing relevant internal and external experts (e.g., Chief Risk Officer, geopolitical analysts) to the board more frequently.

6. What specific actions can boards take to address geopolitical and political risks?

Dr. Andrea Bonime-Blanc outlines a “leadership blueprint” with tactical and strategic actions:

Adopt Geopolitical Situational Awareness: Integrate geopolitical analysis into executive briefings and board meetings.
Laser Focus on Supply Chain: Closely examine the intersection of the organisation’s supply chain (upstream and downstream) and its geo-economic/geostrategic footprint, including clients, customers, and suppliers.
Upgrade Supply Chain with Gen AI: Implement General AI (Gen AI) sophistication in the supply chain to enhance capabilities and protection.
Appoint a Geopolitical Guru: Designate a member of the executive team to be the “geopolitical, political, and policy guru” to coordinate information, manage risks, and advise on country-specific involvement.
Integrate into Enterprise Risk Management (ERM): Incorporate geopolitical and political analysis into the company’s ERM framework and risk governance at the board level to avoid being caught off guard.

7. How are boards in the GCC region evolving in response to these challenges?

Boards in the GCC region are undergoing significant evolution:

Focus on Balanced Leadership: There’s an increasing emphasis on achieving “diversity of thought” in boardrooms. Companies are actively reshuffling boards to include gender balance, appropriate age groups, and diverse backgrounds that better reflect their customer base and geographical footprint.
Increased Effectiveness Scrutiny: Boards are becoming more conscious of their own effectiveness and are engaging in self-evaluations, often benchmarking themselves against others. This trend, previously more common in Western markets, is now gaining traction in the GCC.
Consciousness of “Soft Effects”: Boards are becoming more aware of “softer elements” like organisational purpose, which is crucial for driving a thriving work environment, particularly for newer generations like Gen Z.
Building Digital and AI Expertise: Boards are actively building digital and AI expertise through upskilling existing members, thinking strategically about AI’s impact on their business, and utilising advisors for facilitated discussions.
Higher Operational Involvement: Boards in the GCC show the highest levels of operational involvement globally compared to their international counterparts. While this can lead to conflicts with management, it is often driven by the heightened uncertainties, geopolitical disruptions, and increased liabilities imposed by regulators.

8. What are the current state and future trends of ESG in a multipolar world?

The landscape of ESG is undergoing significant changes:

Politicisation and Pushback: ESG and sustainability issues are experiencing politicisation and pushback, particularly in the US, which has had reverberations globally. This leads to questions about the future direction of stakeholder capitalism.
“Green Hushing”: Despite the public pushback, many businesses are continuing their ESG work, though they might be less vocal about it (“green hushing”). This is because they recognise that incorporating sustainability and ESG considerations into long-term strategy is rational and beneficial for business, impacting energy efficiency, talent relations, and customer engagement.
Regional Focus: In regions like the GCC, the “E” (environmental) component of ESG is particularly strong due to the carbon-driven industries.
Interconnectedness: ESG issues, especially climate and energy policy, have deep geopolitical implications. Boards must continue to factor in sustainability, alongside technology and geopolitics, as crucial elements for the future of the world.

The long-term outlook suggests that smart businesses will continue to integrate ESG principles, even if the political rhetoric shifts, because it aligns with long-term profitability and resilience.

Our guests

Their presentations

Key Terms

AI (Artificial Intelligence): The simulation of human intelligence processes by machines, especially computer systems, including learning, reasoning, and self-correction.
Board Dysfunctionality: A state where a board of directors is not operating effectively, often due to poor dynamics, lack of clear roles, or inability to make sound decisions.
Board Maturity Levels: A classification system (e.g., Developed, Advanced, World-Class) used to assess the sophistication and strategic contribution of a board of directors.
Board Observations: A method of board evaluation where an independent expert observes board meetings to assess dynamics, communication, and effectiveness.
Capacity Building (Boards): The process of enhancing the skills, knowledge, and capabilities of board members to improve overall board performance and strategic oversight.
Chair (Chairman/Chairperson): The presiding officer of a board of directors, responsible for managing meetings and guiding the board’s agenda and discussions.
Compliance: Adherence to laws, regulations, guidelines, and specifications relevant to an organisation’s operations.
Corporate Secretary: An officer of a company responsible for ensuring that the company adheres to legal and regulatory requirements, and for the efficient administration of the board.
Diversity of Thought: The variety of viewpoints, perspectives, and mental models that exist among individuals, which, when present on a board, can lead to more robust decision-making.
Enterprise Risk Management (ERM): A process used by organisations to identify, assess, manage, and monitor potential risks that could affect their objectives.
ESG (Environmental, Social, Governance): A framework used by investors to evaluate a company’s performance on sustainability and ethical issues.
Exponential Technology: Technologies whose capabilities and adoption grow at an accelerating rate, often doubling in power or efficiency over regular intervals.
Fiduciary Duties: The legal and ethical obligations of board members to act in the best interests of the company and its shareholders.
Financial Times Survey: A survey conducted and published by the Financial Times, often used to gauge economic and geopolitical sentiment or trends.
Future-Proofing: The process of anticipating future developments and designing strategies or systems that are resilient to these changes.
GCC (Gulf Cooperation Council): A political and economic union of Arab states bordering the Persian Gulf: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates.
Gen AI (Generative AI): A type of artificial intelligence that can create new content, such as text, images, or code, often used to enhance capabilities.
Geo-Economic Confrontation: Conflict or rivalry between states primarily using economic tools and strategies (e.g., trade wars, sanctions) rather than military force.
Geopolitical Footprint: The geographical areas where a business operates or has significant interests, and how these are affected by political and economic dynamics.
Geopolitical Tectonic Shifts/Ruptures: Significant, fundamental, and potentially sudden changes in the global political landscape and power structures.
Global South: A term often used to refer to countries in Africa, Latin America, and developing Asia, typically characterised by lower income and often with shared histories of colonialism.
Governance Cascade: The process of aligning and implementing governance principles and strategic objectives from the highest levels of an organisation down through all its constituent parts.
Green Hushing: The practice by companies of downplaying or remaining silent about their environmental and sustainability initiatives due to fear of backlash or accusations of “greenwashing.”
Groupthink: A psychological phenomenon that occurs within a group of people in which the desire for harmony or conformity results in an irrational or dysfunctional decision-making outcome.
Hands-off (Board Approach): A governance style where the board primarily focuses on strategic oversight and limits its involvement in the day-to-day operations of the company.
Hybrid Strategist: An executive search firm mentioned by Dr. Wiesner, indicating its role in board appointments.
IHC (International Holding Company): A diversified investment conglomerate based in Abu Dhabi, notable for its innovative approach to AI integration in governance.
Leadership Trust Recession: A general decline in public confidence and trust in leaders and institutions across various sectors.
LLMs (Large Language Models): Advanced AI models trained on vast amounts of text data, capable of understanding, generating, and responding to human language.
Megatrends: Powerful, transformative forces that are likely to shape global society, economy, and environment over many years.
Multipolar World: A global system where power is distributed among several major poles (countries or blocs), rather than being concentrated in one or two.
NEOM: A planned cross-border city in Saudi Arabia, part of the Saudi Vision 2030 project, under the umbrella of the PIF.
Nominations Committee (NRC): A board committee responsible for identifying and recommending qualified candidates for board directorships and for reviewing board composition.
Noses in, Fingers out: A common, though sometimes criticised, adage in governance meaning board members should be well-informed (noses in) but avoid direct operational involvement (fingers out).
Operational Involvement (Boards): The extent to which board members engage in the daily activities, decisions, and management of an organisation.
PIF (Public Investment Fund): Saudi Arabia’s sovereign wealth fund, a major driver of economic diversification and investment in mega-projects.
Polarisation: The division of a group or society into two sharply contrasting factions or opinion groups.
Politicisation (of ESG): The process by which ESG issues become subjects of political debate, controversy, and partisan division.
Poly Risks (Socio-Ecological): Interconnected and complex risks arising from the interaction of social and ecological systems, often with cascading effects.
Proactive Strategic Oversight: An approach where a board actively anticipates future challenges and opportunities, and guides the organisation’s long-term strategy, rather than merely reacting to events.
Rational Business Actions: Decisions made by businesses based on logical considerations of profit maximisation, efficiency, and long-term sustainability, often contrasted with political or ideological motivations.
Regenerative Capitalism: An economic system that aims to restore and regenerate natural and social capital, moving beyond sustainability to create positive impacts.
Regulatory Dynamic: The ongoing changes and pressures in the legal and regulatory environment that affect businesses and their governance.
Scenario Planning: A strategic planning method that involves identifying plausible future states and developing strategies to prepare for each.
Shareholder Capitalism: An economic system where the primary goal of a corporation is to maximise returns to its shareholders.
Situational Awareness: A comprehensive understanding of the current environment, including both internal and external factors, crucial for effective decision-making.
Socio-Ecological Tipping Points: Thresholds in socio-ecological systems beyond which small perturbations can lead to large, potentially irreversible changes.
Stakeholder Capitalism: An economic system where businesses aim to create value for all stakeholders, including employees, customers, suppliers, communities, and the environment, not just shareholders.
State-based Armed Conflict: Military conflict between two or more states.
Strategic Asset: A board’s ability to provide unique value, such as subject matter expertise or relationships, that directly propels the business forward.
Strategic Foresight: The ability to anticipate, understand, and prepare for future trends, disruptions, and scenarios, integrating them into long-term strategic planning.
Subject Matter Experts (SMEs): Individuals with deep knowledge and expertise in a specific field, whose insights are valuable for board discussions.
Supply Chain: The network of all the individuals, organisations, resources, activities, and technologies involved in the creation and sale of a product, from the delivery of source materials to the end-user.
Sustainable Resilience: The capacity of a system, organisation, or community to maintain its core functions and identity in the face of long-term environmental, social, and economic shocks and stresses.
Tariff Wars: A situation where countries impose or increase tariffs on each other’s goods, often leading to retaliatory measures and harming international trade.
Tectonic Changes: Profound and fundamental shifts or transformations, often used metaphorically for large-scale societal or geopolitical changes.
The Line: A linear smart city project currently under construction in Saudi Arabia, part of the NEOM development.
World Economic Forum (WEF) Global Risks Report: An annual report identifying and analysing the most significant global risks and their potential impacts.