This article was published today on the EinNews website.
Dorothy: “Toto, I’ve a feeling we’re not in Kansas anymore.”
There are always risks for businesses when the decision is made to do business in a foreign country. Educating yourself on new laws, different rules, culture, labor issues can make the move to a foreign country an easier process.
With Cuba poised to open up to U.S. investment, it may be tempting for companies to jump in without testing the water.
But first-mover advantage will not guarantee success —in fact, according to a group of risk management experts who spoke at the recent Cuba Opportunity Summit, it could lead to disaster if firms do not have strong compliance programs in place.
“Like any emerging market or any new market that a company wants to go into, there’s always opportunity and there are threats for businesses,” said Glenn Ware, partner and practice group leader for anti-corruption, corporate intelligence and strategic threat management at PwC. “For example, there are labor issues, there are political issues, there are corruption risks and supply chain risks.”