Gavin Carson
Aon
Ask the Expert: International growth and risk management
Gavin Carson, branch manager at Aon Newcastle, helps businesses to understand the risks that ally with the opportunities of international trade.
Q: What key risk issues must a business consider when expanding internationally?
Whilst practices to protect employees at work within the UK are robust, particularly around Health and Safety Legislation, businesses often overlook that their Duty of Care to staff extends further than these shores.
With increasing volatility around the world, particularly in emerging economies and market territories, it has never been more important to make sure your employees are educated, trained and protected whilst travelling. Not only does this ensure staff are safe as possible, it ensures Corporate Governance Standards are met.
Every corporation with global operations, with personnel based in or travelling to high risk countries, should protect itself and its staff against the risk of kidnap, extortion, detention and hijack.
In addition, it is important to consider emerging threats to any assets or balance sheet exposure overseas such as those from a terrorist, political or act of war perspective, and the impact that such activities would have on business operations in specific territories.
An attack on or even near your business facilities could result in human casualties, property damage, business interruption, relocation costs and long-term damage to reputation and share price.
Actions by foreign or domestic governments can deprive an organisation of its assets, prevent or restrict performance of a contract and affect repayment of loans to banks and lenders.
Never has it been more important to fully quantify risk exposures overseas, and ensure robust crisis management plans and procedures are embedded within business practice.
Also, with specific regard to UK exporters, who are having to consider new markets as the traditional markets such as Europe stagnate, the Purchasing Managers’ Index for September showed a contraction of export orders in September which can be attributed to problems in the Eurozone.
While businesses may be familiar with dealing in Europe there is a need to really understand new markets for new export opportunities. It will be necessary to review the terms of payment and to explore all types of trade instruments.
Payment terms need to reflect as much as possible what is expected in the destination country.
All answers are for general guidance only. Each case must be handled on the individual facts.
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About Gavin
Gavin has worked with Aon for 16 years, in most facets of our corporate business, dealing with a number of clients within varied business sectors. He is now responsible for the delivery of Aon Newcastle's service proposition to new and existing clients within the North East region.
Contact Details
Gavin Carson
Branch Leader, Aon Newcastle,
Aon
gavin.carson@aon.co.uk
0191 220 3301
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