Country risk analysis is defined as “the set of risks that are not incurred if one transacts in the domestic market, but which arise when making an investment in a foreign country. These risks are more attributable to political, economic and social differences between the investor’s original country and the country where the investment is made.” (Duncan Meldrum – 2000)
In this area, our structure provides its Clients with in-depth analyses in the international arena that allow them to prepare a specific risk assessment that enables them to make their business decisions with absolute peace of mind and awareness of the possible critical issues that exist.
PREVENTION IS BETTER THAN CURE
To translate into a profitable business, managing a business abroad must take into account the aspects emerging from country risk analysis in the offer to customers.
In fact, knowing in advance the economic impact that risk management may have for a specific business within a country results in an investment aimed at improving or protecting the return on that investment.
Often, corporate management and sales managers underestimate the issue, finding themselves in the process facing unpredictable costs with negative impact on profit, such as missed deadlines, work stoppages, recovery or the need to re-motivate staff, etc.
It is therefore essential to incorporate the costs associated with country risk assessment into the economic quotes, through specialized analyses calibrated to the time and geographic specificities of the investment.
Managing the risks of personnel deployed abroad is not just an economic or financial matter, as it impacts human resource security, company reputation, and legal affairs.
PEOPLE ARE THE COMPETITIVE ADVANTAGE
If we ask a CEO or entrepreneur what is the element in a company that determines success, the answer is always the same: people.
This means that people are the key component of competitive advantage. Although there is a lot of unemployment today and many people are looking for work, companies are not always able to intercept the right professionals to bring on board, grow, retain and engage them. The loss of good and experienced employees is a real asset loss for a company, and if this is due to an underestimation of the risks to which personnel abroad may be subjected, it also negatively impacts its professional image.
Good people, talented people, will never go to work for companies that do not provide personnel security, because these companies will not be deemed trustworthy and worthy of their trust. That is why reputation is a contributor to a company’s success.
REPUTATION CONTRIBUTES TO THE SUCCESS OF THE COMPANY
Every business, in order to thrive, requires a solid climate of trust: the trust of customers, suppliers and investors. Inadequacy in the prevention and management of corporate and personnel security abroad seriously undermines the reputation of the enterprise and undermines the climate of trust, generating negative repercussions on the entire value chain.
IT IS IMPORTANT TO MINIMIZE LEGAL RISK
Finally, there is the legal aspect that often, more than anything else, worries administrators and entrepreneurs. No executive would ever make a decision that increases his or her company’s legal risk, especially in today’s particular economic climate, not least because of the frightening repercussions that would impact his or her career and personal legal position should something really go wrong.
Until a decade ago, the possibility of being involved etc…. ” with this “Until a decade ago it was mistakenly believed that the risk of being directly involved in accidents abroad was remote. Today it is clear that international operations, especially in certain geographical areas, involve real risks. However, as recently as two years ago, many companies still chose not to invest in prevention and security, mistakenly considering it an unproductive expense rather than a strategic investment.
Even today, it is still very difficult to explain and make managers and entrepreneurs understand the international situation, until the prosecutor does it in a courtroom.
Companies and individuals face some very difficult situations when doing business abroad, and the danger is never detectable by a Westerner. Terrorism, natural disasters, health emergencies, cultural differences–these risks are real. How a company takes precautions, or fails to take precautions, always has far-reaching consequences, sometimes unfortunately dramatic ones.
