Why manage risks on the ground?
During an international development it is important to assess all the risks that may hinder the action of the company. There are different types of risks:
- Strategic risks related to competition: here the purpose is to identify anti-competitive practices.
- Financial and accounting risks: If partnership agreement exists it is necessary to have access to the balance sheets and accounts of the other party. It is also crucial that the method used for the presentation of the balance sheet is robust.
- Operational risk is defined as the failure of internal processes, external events, whether deliberate or accidental causing direct or indirect loss.
- Tax risks: it is necessary to interpret properly the applicable tax laws which are regularly changed.
- Legal risk: The legal risk is omnipresent, whether as plaintiff or defendant. It is necessary to be prepared, and be able to anticipate.