Integrated Trade Compliance Strategies: Seven Best Practices of Leading Traders
Best Practice #6
In an increasingly globalized trade environment, more companies than ever before are tapping into new export markets around the world. While this presents tremendous business opportunities, to compete effectively, companies need to be mindful of the various risks involved — chief amongst them, complying with frequently complex regulatory systems applicable to international transactions.
According to a recent report by Deloitte Financial Advisory Services on global investments,
for North American companies looking to expand in emerging markets,“compliance and integrity
risks appear to be rising sharply.” The report found that increased foreign activity significantly raised the stakes for corporate strategists and compliance officers.
More than ever, a cautious “look before you leap” approach should be at the top
of the agenda for globally active corporations, the report concluded.
“Companies seeking to expand global markets need to be mindful of the myriad of regulatory and trade compliance risks involved.”
Our best practice research with companies surveyed appears to validate that cautionary warning, indicating that when evaluating potential new markets, leading global traders and best-in-class companies are keenly aware of the need to thoroughly assess all of the legal requirements, security concerns, and supply chain implications involved. As a result, senior executives at these firms routinely incorporate trade compliance risks into their strategic planning process when exploring growth opportunities abroad.
To accentuate that point, one international chemical manufacturer we interviewed spoke about the importance of the firm’s reputation and brand as its most important asset, that must be protected when considering any new business development initiative or contract with suppliers or customers. Compliance integrity is viewed as a critical element of the brand’s equity, and mandated as a key point of emphasis by company ownership as a result.
Also in this series:
• 7 Best Practices of Leading Traders
• Corporate Leadership is Essential to Effective Trade Compliance
• Trade Compliance Needs to be Owned by a “Champion” or Team Within the Organization
• Successful Trade Compliance Depends on Benchmarking
• Automating Your Trade Compliance Success
• Effective Communications Protocols are Vital Aspects of Trade Compliance
• Team up with Professional Service Providers for Compliance Success
• Putting Best Trade Compliance Practices Into Action
• Best Practice Compliance: Benchmarking Questions