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The United States (US) government shutdown, the longest in the country’s history is finally nearing its end after the Congress approved a funding bill with a vote of 222 to 209, according to BBC.
What Happened and Why the Shutdown Occurred
The shutdown began on 1 October, as the Congress Republicans and Democrats had failed to agree on legislation to fund government services, according to Reuters.
A Record-Breaking Shutdown with Wide Impacts
According to BBC, thousands of government employees deemed non-essential were temporarily put on unpaid leave, including air traffic controllers that are expected to work without getting paid. The federal government even mandated flight cuts to airlines at 40 airports, to help alleviate overworked air controllers and others who had been working without pay.
More than 42 million Americans who rely on Snap food aid benefits have received only partial payments after the Supreme Court allowed the Trump administration to withhold some funding pending further legal hearings. Those funds will now go back to normal as the government reopens.
A Global Reminder of Political Risk
For Asia-Pacific organisation working with US companies through exports, supply chains or regulatory frameworks, the 43 Days shutdown illustrates how political instability in major economies can trigger operational uncertainty. Delays in customs processing, import approvals, and federal reporting may seem minor but can quickly disrupt shipping schedules, financial reporting and risk assessments.
Geopolitical Uncertainty and the Evolving Risk Landscape
For global organisations, the shutdown serves as a timely reminder that governance disruptions can create far-reaching ripple effects, not only economically, but geopolitically.
Steve Tunstall, with over 30 years of experience in risk management, shared his reflections on the evolving environment.
“We are now operating in an upside-down world where change is constant. In 2025, it is more important than ever for risk managers to stay informed and agile.”
He added that in 2025, organisations must stay agile and avoid long term commitments without backup plans, especially as geopolitics becomes an even more critical factor for global companies.
“The biggest learning in 2025 is that there is now a lack of clarity as to what the new world order will look like. What we can see is that there will be a multipolar world evolving, and it is important that Risk Managers understand the implications of this and be ready to move and seize opportunities as they emerge.”
His views highlight that the US shutdown is more than a domestic political issue, it reflects a shifting global order that demands flexibility, foresight, and continuous risk assessment.
Looking Ahead
According to Time, even though the end of shutdown will bring immediate relief to federal workers, who will soon begin receiving back pay after missing multiple pay checks, the underlying political divisions that led to the 43-day shutdown remain unresolved, raising concerns that similar crises could occur.
For risk managers, this emphasises that not all crises are external, but sometimes the disruption comes from within the system itself. Managing such risks requires foresight, agility, and a holistic understanding of how governance failures can challenge even the most resilient organisations.
