Insights
This video is the eighth installment in a series examining the multifaceted impacts of tariff and trade policies. By delving into the nuances of these policies, we aim to provide valuable insights and perspectives that will inform strategic business decision-making and foster resilience in an increasingly volatile global market. Future pieces in this series will explore the specific implications for key sectors, offering targeted analysis and recommendations to help businesses navigate and thrive amidst evolving trade landscapes.
Publication Date: May 20, 2025
Boards of directors globally are confronting unknown circumstances as a result of the current quickly shifting tariff and trade environment. Business risks and opportunities are magnified during such times, compelling boards to seek the right strategies in order to meet these challenges.
In the video linked below, Brian Gleason, John Peiserich, James E. Malackowski, and Mariano de Alba – experts in business turnaround, supply chain, intellectual property, and political risk – outline emerging considerations for boards of directors in light of changing tariff policies, including:
Dori Marlin: The tariff environment is changing so rapidly -- almost weekly, daily sometimes, it seems these days. Mariano, what are the global considerations and the political ramifications that boards of directors need to be focused on right now in light of this constantly shifting tariff environment?
Mariano de Alba: I would point out three. The first one is the strategic implications that tariffs have for supply chains. Boards of directors should really assess the impact of the tariff scheme on their supply chain, especially because in some cases they will not be able to pass down those costs to customers.
So as a second consideration, I would say that the financial impact of these policies is also crucial to track.
And third, obviously tariffs are very driven by geopolitical considerations, by political risk considerations. So being aware of what are those considerations, and how can they evolve in the short- and medium-term, is crucial for boards of directors to consider when responding to this new landscape.
Dori: So then, focusing now on the regulatory issues to be addressed, because certainly there are a lot. John, what should be addressed there? What does that long-term view look like for boards?
John Peiserich: Yeah, Dori, I think one of the things you have to be mindful of is the fact that, you know, as a board, you're not in the day-to-day business every time. And so you need to ask and look proactively at what does compliance look like? Is there a driver that's upcoming that is going to be impacted by these things? Do you have a regulatory obligation that is well understood – or has it been, you know, has it suddenly become less clear? And so I think as we, as a board of directors, try to work through these details, make sure you're asking the questions. Go ahead and put them on the spot. Ask the hard questions. Say, do we know what our policy is? Do we know where we're heading so that we can have that forward look that is less dependent on things that we can't control because, again, you know, the things that we can do well are those that we can control, the things that we can't are going to be more complicated for us.
Dori: Great general Insights there and then, Jim, focusing on intellectual property, what on that side should boards be looking at?
James Malackowski: Well, because intellectual property or intangible assets generally are so important to the value of a corporation or a company, we do really view the board as sort of the central point or hub that connects our prior discussions related to senior management or investors. And so the board has to pay attention to short-term effects, we talked about royalty audits or cash flow management. They have to prepare for long-term effects and what relocation to different jurisdictions would mean from an intellectual property point of view. But explicitly to the board we focus on the importance of an international peer-to-peer network.
And that's why having a Chief Intellectual Property Officer or a committee of the board responsible for IP-related issues is so important. And, fortunately, there are great nonprofit organizations that provide those networking groups like LES or the Global Intellectual Property Alliance, so we encourage their participation in those groups.
But in the end, it really comes down to a simple mantra of, “have a plan.”
Make sure that at the board level you are thinking about intellectual property as one of your most important, most valuable strategic assets, so that you can react quickly to unexpected events. And I think everyone here agrees, what we're going through is somewhat unexpected.
Dori: Certainly. And then, finally, Brian, your team advises boards and senior management teams. What should boards expect of the management teams today with this increased uncertainty around tariffs and then how is it different than, let's say, normal times?
Brian Gleason: Thanks. So, during times of uncertainty – stress, distress – boards need to have a heightened level of interface with their management teams. Getting quarterly board updates about how management is reacting to tariffs is not sufficient oversight in today's world.
The current tariff regime is unprecedented. Whatever your opinion about the merits of the broad tariff strategy, there is no doubt it is creating uncertainty for business. During times of uncertainty, opportunities and risks magnify. So what should you expect of your management team? That they have a keen sense of their current liquidity. We cannot have them being stressed by ability to run out of cash.
They need to be communicating with you on a regular basis but they need to be communicating with other investors and lenders and customers and vendors. They need to have open communications. It's really important. Their forecast must be updated. It is critical that no high-level updates of forecast refreshed.
They need to really be able to tell you what are the assumptions they are making. How do these change from their original assumptions? What are the impacts? They have a list that's very detailed with what they know and what they don't know, and that they've communicated that to people. A plan with detailed assumptions – when later variations happen – that explainable deviation is critical. It keeps a lot of credibility for the management team, so push them on that.
And then finally, who is their team? Who are they bringing together to make sure that they're analyzing what is going on and what is changing? Are they picking the best and the brightest for you as a board?
It's a time to really see how people react during difficult times. And then who are they bringing in from the outside to help them test their assumptions about what they're doing? Those are the things that we're looking for to advise management teams and boards to expect of management teams.
Dori: Well, gentlemen, appreciate the expertise from all the different angles here. For more you can check out jsheld.com/insights.
Brian Gleason, CTP, is a Senior Managing Director at Phoenix Management, a part of J.S. Held. He joined the company in October of 2023 as part of J.S. Held's acquisition of Phoenix Management Services. As a Certified Turnaround Professional (CTP), Brian has managed or participated in excess of 250 turnaround engagements over the past 28 years using his executive, operational, financial, and negotiating skills. He has significant experience in interim management roles, including CRO, CEO, COO, and CFO of sponsor-backed, privately held, and publicly reporting entities. He has been a board member in many companies including private and public companies and is often engaged in these roles when there is significant disruption in the company, or at the board level. In certain circumstances, he represents capital providers directly to advise on operational and restructuring matters for their portfolio companies.
Brian can be reached at [email protected] or +1 610 659 8118.
John Peiserich is an Executive Vice President and Practice Lead in J.S. Held’s Environmental, Health & Safety practice. With over 30 years of experience, John provides consulting and expert services for heavy industry and law firms throughout the country with a focus on Oil & Gas, Energy, and Public Utilities, including serving as an expert witness in arbitration proceedings and in state and federal courts. He has extensive experience evaluating risk associated with potential and ongoing compliance obligations, developing strategies around those obligations, and working to implement a client-focused compliance strategy. Mr. Peiserich has appointments as an Independent Monitor through EPA’s Suspension and Debarment Program. John routinely supports clients in a forward-facing role for rulemaking and legislative issues involving energy, environmental, Oil & Gas, and related issues.
John can be reached at [email protected] or +1 504 360 8373.
James E. Malackowski is a Senior Managing Director of Ocean Tomo, a part of J.S. Held. Ocean Tomo provides Financial Expert, Management Consulting, and Advisory services related to intellectual property (IP) and other intangible assets; corporate accounting investigations; regulatory and reporting obligations; solvency and restructuring; and contractual or competition disputes. Practice offerings address economic damage calculations and testimony; accounting investigations and financial forensics; technology and intangible asset valuation; strategy and risk management consulting; mergers and acquisitions; debt and equity private placement; and IP brokerage. Subsidiaries of Ocean Tomo include Ocean Tomo Investments Group, LLC, a registered broker dealer. With more than 100 offices globally, J.S. Held assists clients – corporations, insurers, law firms, governments, and institutional investors – on complex technical, scientific, and financial matters across all assets and value at risk.
James can be reached at [email protected] or +1 312 327 4410.
Mariano de Alba is a Director in J.S. Held’s Global Investigations practice. Based in J.S. Held’s London office, Mariano is a Venezuelan lawyer who specializes in political risk, international law and foreign affairs. He has more than a decade of experience advising multinational companies, investors, governments, and international organizations on how to operate and deal with issues in Latin America.
Mariano can be reached at [email protected] or +44 7510 645 684.
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