KPMG’s Top Geopolitical Risks 2025: New Power Shifts, Chaos, and the Age of Uncertainty

KPMG's latest report on Top Geopolitical Risks for 2025 outlines how the world is entering a new era of disorder, fragmentation, and unpredictability, especially following the political shakeups from the 2024 US elections and subsequent global reactions.

 Core Risks:

1. Tectonic Shifts in Power, Trade, and Investment

The previous US-led global order has given way to a multipolar world.

Emerging middle powers (India, Brazil, Saudi Arabia, UAE) are gaining influence.

Trade alliances are being redrawn, friendshoring and protectionism are surging.

US-China tech and trade wars are escalating, impacting supply chains, inflation, and business models.

2. Complex, Fragmented Regulations & Tax Landscapes

Companies face rising tax disputes, ESG mandates, and sanctions risks, varying wildly by geography.

Organizations must balance local compliance vs. global agility to stay competitive.

Divergent regulations around ESG, tech, and AI create major hurdles.

3. Technology Becomes Politicized

Geopolitical tensions now shape tech ecosystems:

AI, quantum, semiconductors, and cybersecurity are at the core of the new arms race.

The world is splitting into tech blocs led by the US and China, with other regions caught in the middle.

4. Threats to Supply Chains, Assets, and Infrastructure

Conflict, tariffs, and climate crises strain global logistics and raw materials access.

Attacks on digital and physical infrastructure are increasing, including threats to undersea cables and energy grids.

Resource competition and protectionism are intensifying, especially in energy, food, and critical minerals.

5. Workforce & Demographic Challenges

Aging populations, culture wars, and AI integration will pressure companies to:

Upskill and reskill workforces rapidly.

Adapt hiring strategies to a polarized, volatile world with labor shortages and anti-immigration pressures.

This is a fascinating, bold, and timely report. The geopolitical shifts accelerated by the new US administration’s strategies are pushing the world into what I see as times of chaos and uncertainty. We’re living through the collapse of the old global order and the turbulent birth of new regional blocs, protectionism, and escalating risks. What’s most striking to me is the urgent need for antifragility, agility, and resilience strategies, both in corporate governance and national security. Taleb’s work on Antifragility is becoming more relevant than ever—organizations that can adapt dynamically, absorb shocks, and even grow stronger through crises will be the ones that survive and thrive in this new reality. We are no longer living in risk management times—we’re in uncertainty management times.

Read the report:  Link

Author: Sebastian Burgemejster