How directors can use geopolitical economic shifts as strategic opportunities

CommBank Group Executive, Institutional Banking and Markets, Sinead Taylor outlines the forces influencing business decision-making, from geopolitical shifts to evolving economic conditions and strategic opportunities.

There is no question that the significant geopolitical shifts are redefining the environment in which Australian businesses operate.

The Trump administration’s push to rearchitect global trade flows has injected a lot of uncertainty into the global economic outlook. The erratic implementation of the US tariff policy delivered near-record market volatility in April and propelled expectations of interest rate cuts both in the US and domestically. Globally, economists have been downgrading their outlook on global growth. CommBank’s economic insights team in the Trade war cuts global economic growth outlook publication are now expecting the world economy to expand 2.4% in 2025, down from 2.9% previously forecast. 

For businesses, the risks surrounding the inconsistent policy direction of the US government remain. There is continued uncertainty when it comes to the US and that is undoubtedly casting a long shadow on decisions around investment, growth and trade. More uncertainty means it’s harder to make decisions, harder to commit to investments and allocate capital. Risk premiums are higher across the board — and expected to stay there for longer — so the economics of certain business activities and investments are shifting.

Weighing against this uncertainty, the recent elections in both Canada and Australia seem to indicate that support for a more open approach to free markets, free trade and immigration is still possible on the world stage.  These and like-minded countries can be expected to take a more traditional approach to setting domestic policy and international relations.

These election results should provide plenty of opportunities for businesses in this changing world order. As economies seek to diversify away from trade with the US, new markets are emerging and relationships are being reprioritised. This stands to open important opportunities, especially for corporate Australia.

At CommBank, we are mindful of the profound impact these factors have on strategic decision-making. Our teams engage closely with business and institutional clients to support them in managing risks like interest rate volatility and supply chain disruptions, assisting them to remain agile and responsive.

Against this fluid geopolitical and economic backdrop, there has never been a more critical moment for business leaders to tap into the knowledge, data that can drive their organisations forward.

With that context in mind, I am pleased to welcome you to this special edition of Company Director magazine, which gathers diverse viewpoints and expert analysis to help leaders effectively navigate today’s complex business landscape and reframe their perspective on risk and opportunity.

Alongside the geopolitical upheaval, there is no issue that stands to redefine the future of business more than the mass adoption of artificial intelligence (AI), a transformative shift we are proactively exploring.

Beyond our major initiatives like the Seattle Tech Hub and rolling out organisation-wide AI upskilling, our ongoing commitment to digital innovation and process optimisation is evident in our incremental and practical approach. We are currently piloting AI-driven tools designed to synthesise complex economic movements, creating tailored analysis in response to specific client queries.

This approach enhances responsiveness and efficiency, clarifying intelligence without requiring detailed review of extensive economic documentation.

By digitising critical processes like lending procedures, we significantly reduced processing times, providing clients with smoother banking interactions. Smart operational enhancements free up resources, enhancing our human impact by enabling a stronger focus on client relationships and strategic support. You can learn more in the Australia’s AI advantage feature.

Our engagement extends to broader community initiatives through strategic partnerships and collaborative efforts. Stella Avramopoulos’s frontline reflections from Good Shepherd ANZ powerfully illustrate how strategic improvements can directly support meaningful social outcomes. Additionally, our recent thought leadership series on global First Nations capital and impact highlights our commitment to inclusive business practices and community engagement.

This issue also includes detailed discussions on topics fundamental to business optimisation and performance, like working capital and foreign exchange.

Given the intricate challenges facing businesses today, CommBank remains committed to providing relevant insights, practical support, and strategic guidance to navigate this evolving landscape effectively.

Together, we can address today’s challenges and foster sustainable growth for the business ecosystem and beyond.

This article first appeared under the headline 'Navigating global challenges and opportunities' in the June 2025 issue of Company Director magazine.