Heads of enterprise risk management (ERM) are well positioned to identify potential tariff impacts for their organisation by assessing their risk in three steps, according to Gartner.
The three steps ERM leaders should follow include:
- Assess how tariff risks impact their organisation;
- Prepare risk owners to navigate tariff volatility and uncertainty; and
- Engage in proactive scenario analysis.
“ERM is well positioned to help its organisation navigate the effects of a volatile tariff environment,” says Alex Ossington, director: advisory in the Gartner Assurance Practice. “It’s likely that most organizations globally will encounter tariff-related challenges that will impact their ability to deliver goods and services.”
Assess How Tariff Risks Impact the Organisation
To best prepare for the impact, extent and duration of the U.S. tariff policies, ERM leaders can identify which risks are most relevant to their organisation, such as supply chain disruptions, retaliatory tariffs, and regulatory and compliance risks.
When assessing these risks ERM teams should develop key risk indicators to provide triggers for any planned mitigation action.
Prepare Risk Owners to Navigate Tariff Volatility and Uncertainty
The first step involves working closely with the chief supply chain officer (CSCO) to evaluate the organisation’s exposure to tariffs and other related risks.
Key questions to address include:
- What significant risks are posed to our organisation by tariffs?
- Who are our critical suppliers and what impacts are they likely to experience? If they are impacted, how significantly will that disrupt our operations?
“ERM leaders should work with the CSCO to implement processes to monitor at-risk materials, map manufacturing locations, and evaluate logistics landscapes; leveraging the organisation’s risk appetite to right-size risk response,” says Ossington.
Engage in Proactive Scenario Analysis
According to a Gartner poll of 193 CFO and finance leaders in March 2025, 53% of CFOs and finance leaders plan to update their risk assessments, scenario planning models, and contingency plans to address the evolving tariff landscape and potential future escalations.
“ERM teams are uniquely positioned to spearhead scenario analysis efforts, enabling organizations to anticipate and mitigate tariff impacts effectively,” says Ossington. “By engaging risk owners in dedicated sessions, ERM teams can help CFOs to identify value at risk, recognise interim signals, and implement low-cost actions promptly.”