Geopolitical risks have always plagued supply chain operations; however, as supply chains have become more global, the risks they are exposed to have also expanded. The risks run the gamut from trade wars to actual wars. Companies can take steps to mitigate risks in their global supply chains.

The world depends on trust to conduct business and governmental affairs. Unfortunately, there is a growing lack of trust between America and China. Journalist Thomas Friedman notes, “Just when trust has become more important than ever between the U.S. and China, it also has become scarcer than ever. Bad trend.”

Genuine global leadership does not mean authoritarian leadership. The World Economic Forum suggests that “systems leadership” is a better model. “Systems leadership is about cultivating a shared vision for change — working together with all stakeholders of global society. It’s about empowering widespread innovation and action based on mutual accountability and collaboration.” Even the systems leadership model requires a champion and America still needs to fill that role.

Global companies, like Nestlé, routinely operate in areas of conflict. When they do, they must navigate a minefield of issues, from securing the safety of their workers to protecting their business reputation.