We live in an unpredictable world. The international situation is challenging. On top of the current armed conflicts, military action between Israel and Hezbollah is quite possible. We also face threats from cyber-attacks, hybrid warfare and sophisticated disinformation campaigns. Politicians are navigating stormy waters too with populism a real issue. This uncertainty impacts on the global economy. It is unclear when inflation will finally be tamed so the timing of interest rate cuts is uncertain. Exchange rates and energy prices are more volatile too.
Challenges facing the business
Business faces other challenges. Net Zero impacts industries like agriculture, automobiles, construction and transport as well as energy. And investors care about sustainability. So monitoring legislation and broader trends matters. The same applies to sanctions regimes. Breaching them brings financial and other penalties and reputational damage. However, uncertainty and change is creating exciting opportunities too, led by the green agenda and new technology. The defence sector is also booming.
Risk management
Let me offer a few tips on exploiting opportunities, while managing risk.
Monitoring the situation
Firstly, even small firms should monitor international developments as well as local ones. Horizon scanning helps you prepare for what is coming down the road and gives you a competitive edge. Nor does it need major resources. Chambers of commerce, business associations, and reputable news sites are all good information sources .
Exports and investments
Secondly, exporting and investing abroad reduces your reliance on home markets. The evidence shows that firms that export are often more innovative, flexible and profitable than those that don’t. Poland and Central Europe is a growth region inside the EU. It has the potential to grow your business. Nor does exporting have to be risky, though it is essential to research potential markets thoroughly and a local partner can help. Support is available for new exporters. Export credit insurance is also an option.
Due diligence
Thirdly, undertaking due diligence on potential clients, partners and contractors is key. Some of this can be done with publicly available resources. But professional expertise makes a big difference. I collaborate with a boutique Polish firm Verificators which focuses on Central Europe and have learnt how vital business intelligence can be. By legally acquiring and analysing information including from specialised databases, Verificators can verify a potential partner or contractor’s reputation and financial status, flag up potential risks, supply information about markets and trends, and minimise risks around sanctions and conflicts of interest. It can also help in areas like litigation support, detective services, debt recovery and technical security.
Summary
In conclusion, staying informed, taking control and managing risk helps business to navigate challenges and capitalise on new opportunities. Verificators can help.
Author: Robin Barnett
