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sure thing – there’s no such thing when it comes to exporting. But the risk of not expanding your international

business is increasingly great when considered against weakened domestic markets. In fact, companies that start to export have been shown to increase productivity by up to 34 per cent in the fi rst year alone. Risk has had a bad press over the years, and we tend to regard ‘risky’ decisions in purely negative terms. Interestingly, ISO 31000 defi nes risk as the ‘effect of uncertainty on objectives’ and it is when we consider risk as an uncertainty or ‘weighing up the odds’, it becomes more about decision-making than gambling on the future. The risk in doing business overseas

can be broken into four main areas – political and economic developments, legal differences, intellectual property and fi nancial protection. While not all can be controlled far enough to guarantee glitch-free success, as with most decisions, the difference between success and failure lies in being informed before moving ahead.

IN THE KNOW UK Trade & Investment and the Foreign & Commonwealth Offi ce (FCO) have brought together a wealth of information and resources under its Overseas Business Risk (OBR) service. Launched just over a year ago, OBR supports fi rms in three of these areas, with UK Export Finance providing fi nancial protection. By tapping into its knowledge and insight, businesses can create an understanding of the opportunities and possible limitations of operating in a local market, before even landing in the region. Ironically some of the world’s ‘riskiest’ territories offer UK fi rms among the greatest opportunities for export and growth. Infrastructure projects across much of the developing world and in areas in the Middle East, following last year’s Arab Spring, for example, create signifi cant, high-value opportunities for UK fi rms with expertise in these sectors. Although this is the polar end of the

spectrum, and most countries offer a relatively stable trading environment, economic fl uctuations – such as the Eurozone crisis – have the potential to create ripples in a business’ export plans. Understanding a region’s political, cultural and commercial environment will help immeasurably in getting it right when exporting or pitching for business in a new market. UK Trade & Investment is able to provide regularly updated country advice while the FCO travel advice service creates a ‘real time’ update on countries, particularly useful should unrest or a natural disaster occur. This is backed by on-the-ground support from UK Trade & Investment and FCO staff in embassies and high commissions around the globe.

LEGAL PROTECTION There are, of course, signifi cant differences between domestic and international law. With the introduction of the Bribery Act in 2011, legal risk is one area that is essential to address – usually with professional advice – at the outset. Under the Act, it is an offence for a UK national or company to be involved in overseas corruption. The UK government is working with

the OECD, UN and other international bodies to address corruption, particularly in countries where bribes have been a commonplace way of hastening or smoothing business. The Department for Business, Innovation and Skills sponsors business-anti-corruption.com which provides country-specifi c information while the Ministry of Justice provides further insight into the Bribery Act at justice.gov.uk/legislation/bribery. Beyond this, legal complexities may lie

around copyright and intellectual property rights, and the impact of local legislation in these areas may need consideration. Protecting your assets online is equally important, and the Get Safe Online (www.getsafeonline.org) site offers a step-by-step guide to evaluating risks to your company’s virtual presence. Yet perhaps the single most important risk issue for most exporters is ‘will I get paid?’ Financial risk, dependent upon the stability of overseas markets,

Established 40 years ago, UK manufacturer Renishaw has built an extensive international presence with offi ces in 32 countries. The company exports to more than 70 market through existing distributor channels, from New Zealand to Norway. “Exporting to a diverse range

of markets presents different challenges for different reasons,” says Rhydian Pountney, general manager, sales division. “In Russia, for example, customs and import procedures can be complicated and time-consuming. By employing an experienced import administrator, we help to ensure that all of our shipments are cleared with the minimum of delay.” Pountney says there is no substitute for proper legal and professional advice which the company has used when it has met with specifi c barriers. He also advises that potential exporters talk to organisations who have some experience in the market – either a fi rm already doing business there or a regional UK Trade & Investment trade adviser. renishaw.com

economies and customers, can seem a daunting ‘uncertainty’. With the relaunch of UK Export Finance

(ukexportfi nance.gov.uk) – the UK’s offi cial export credit agency – last year, companies can now buy insurance to protect against non-payment by overseas buyers or on foreign investments. The service also offers help with working capital to enable fi rms to take on large export orders. A common-sense approach to doing business still applies, but the service provides reassurance for companies expanding into new markets. With growing support from government

to protect UK fi rms’ interests overseas, exporting is one risk worth taking. ■

LET’S DO BUSINESS Find out more at www.ukti.

gov.uk/export/howwehelp/ overseasbusinessrisk.html) and follow @UKTI_BizRisk on Twitter.

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