April 09, 2019

Loss Prevention Magazine released an article that as retailers expand operations and aspirations abroad, more risk will come. The article says, "It’s the uniform view among global risk analysts that the world is becoming more uncertain, more dangerous."

"Bruce McIndoe, president of WorldAware, a global risk management firm, sees two emerging risk categories that pose a particular risk to the global aspirations of retailers: societal risks and the escalation of friction between nation states. 'While we always have had to deal with societal risks, such as citizen unrest in response to labor, human rights, and corruption issues, there are a number of countries where divisive issues are currently fracturing the society,' McIndoe told Loss Prevention Magazine, specifically citing risks from the rise of nationalism and populism across Europe and Asia as examples. 'Similarly, while friction has always existed between nation states, rising globalization has coincided with more frequent instances of friction between countries over geopolitical issues ranging from trade to domestic security, and beyond.'"

Companies who expand overseas need to know regulatory and compliance risk and to understand local business practices. To avoid hefty legal costs or financial loss, organizations should be fully informed on regulations including corruption legislation. This knowledge, or lack thereof, may impact future customer acquisition and retention. Operational Risk Management as an organizational process has become essential, especially with the rise of globalization. This risk process provides clarity in identifying, prioritizing, and mitigating the risk in any opportunity pursued. 

Make sure you have a business continuity plan in place as you expand operations. WorldAware can help you gain intelligence, technology, and decision support to ensure the safety of your personnel across the globe. We identify emerging risks to enable you to prepare for, monitor and respond to threats.

Read the full article.