Definition
Geopolitical risk arises from wars, sanctions, trade conflicts, regulations, and political instability that disrupt global operations; resilience means designing supply chains that withstand these shocks.

Introduction
A single geopolitical event can halt production worldwide. Strategic resilience balances efficiency with redundancy.

Explanation

Risk sources: territorial conflicts, export controls, energy crises, regulatory shifts, cyber threats.

Resilience levers: multi-sourcing, near-shoring, strategic stockpiles, dual certification of vendors.

Digital visibility: track tier-2 and tier-3 suppliers via control towers and IoT signals.

Scenario planning: simulate “what if country X locks down?”

Metrics: recovery time objective (RTO), supplier risk index, business continuity score.

Key Takeaways

Efficiency without resilience is fragile.

Visibility beyond tier-1 suppliers is critical.

Balance cost saving with strategic redundancy.

Real-World Case
Apple diversified assembly from China to India and Vietnam to hedge tariff and geopolitical risks post-2020.