So where is the global economy headed? This question remains top of mind for corporate leaders as they continue to monitor the potential business impacts of tariffs and other trade-related developments. The answer depends on whether the world chooses a path that will increase cooperation and stability among countries and within societies. This week, we look at scenarios for future global growth and how they might unfold.

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The job of corporate boards has become more complex and demanding in recent years. Leadership teams are seeking more and more guidance on how to manage fast-evolving issues, such as geopolitics, cybersecurity, and gen AI. While geopolitical risk was not historically a top concern for boards as a stand-alone topic, it now infuses many key areas of the business, including growth, innovation, technology, and people, notes McKinsey Partner and Global Director of Geopolitics Ziad Haider. “It is fundamentally a new muscle for many boards, who came of age in a very different era where they weren’t having to think about geopolitical risk, segmentation, and fragmentation,” he says in an episode of McKinsey’s Inside the Strategy Room podcast. Senior Partner Frithjof Lund adds that many organizations are discussing whether their boards have the right expertise to tackle geopolitical risk—with some conducting trainings and bringing on external experts as directors to boost their capabilities. “It’s the same question around some of the technology trends [and] some of the macroeconomic trends. How do we ensure that we have a composition that reflects the strategic needs of the companies?” Lund says.

Lead by working toward balance and trust.