CIOs must step up to lead digital geopolitics

CIOs are facing increasing pressure to step up to lead ‘digital geopolitics’ as technology governance issues emanating from the fraught geopolitical climate come to the fore, according to Gartner.

A survey conducted by the research firm found that 41% of boards of directors view geopolitical power shifts and turbulence as one of the biggest risks to performance.

This has led to Gartner predicting that by 2026, 70% of multinational enterprises will adjust the countries in which they operate to help reduce their geopolitical exposure.

Gartner VP analyst and fellow Brian Prentice said digital geopolitics is rapidly emerging as its own unique category of risk alongside conventional geopolitical tussles.

“Digital geopolitics is now one of the most disruptive trends that CIOs must address, with many now dealing with trade disputes, legislation coming from one country that impacts global operations, and government-imposed restrictions on the acquisition and use of technology,” he said. “They need to get acquainted with this new reality and prepare for its impact.”

CIOs must play a pivotal role in assessing corporate digital geopolitics risk and re-architecting systems if required to reduce companies’ exposure to this risk, he said.

Issues that will need to be addressed include protecting digital sovereignty and complying with regulations and laws introduced by countries to achieve this goal, as well as countries vying for control over the governance of cyberspace, which may have profound impacts on a business’s ability to operate internationally, Gartner said.

Meanwhile, many national governments investing in developing a homegrown technology sector will provide CIOs with an opportunity for proactive engagement with governments, the company predicted.

Conversely, the growing digitalisation of national military and security operations may leave CIOs facing disruptions arising from regulations restricting or mandating suppliers of the technologies used within the enterprise.

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