
Board series: Stress testing supply chains in a fractured world – The case for rapid-switch back planning
In Q2 2025, tariff volatility and regulatory shifts have become a defining force in enterprise strategy — no longer a “trade” issue, instead a board-level risk. The most sophisticated multinationals are now deploying structured stress-testing frameworks to model “policy shock” scenarios: tariff spikes, export control expansions, carbon border pricing, and compliance detentions. These models link granular HS-code exposure, supplier geography, and product carbon intensity to real-time profit-and-loss simulations —quantifying the margin at risk and working capital requirements under each regulatory outcome. For directors, the strategic question is shifting from “Where should we produce?” to “How fast can we re-position when the rules
