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Section 2 – Growth
GENERAL COUNS E L PERCE I VE I NCREAS I NG REGULAT I ON AS THE B I GGE S T BARR I ER TO ENT ER I NG NEW MARKE T S 46% of General Counsel identify increasing regulation, including sanctions, as the biggest barrier to entering new markets. Board Directors place concerns about local compliance procedures, terrorism and political stability at the top of their list. Identifying and managing the risks associated with new market entry requires integrated input across the business as well as input from local experts. YOU HAVE TO TAKE ACCOUNT OF RISK AND ANALYSE DIFFERENT SCENARIOS TO IDENTIFY THE CORRECT BALANCE BETWEEN RISK AND REWARD. YOU HAVE TO BE MODEST AND CLEAR ABOUT RISK APPETITE. IT’S NOT A ONE-PERSON JOB, IT IS MULTIDISCIPLINARY AND YOU NEED LOCAL HELP.
Our respondents gave practical advice on how they have achieved success in new markets despite the daunting barriers they have faced. An intelligent, experienced legal function that understands what the business wants to achieve and makes decisions in harmony with the Board can be a key engine for growth, but this is dependent on having a skilled team in place.
Extensive networking through existing contacts and visits to regional events is recommended in order to build on-the-ground partnerships with supply businesses and political contacts. Technology has made this process quicker and cheaper to achieve at a distance, but the benefits of face-to face interaction should not be underestimated.
GROWTH , PART I CULAR LY I NT E RNAT I ONAL GROWTH , I S
I T I S QUE S T I ONAB L E WHE THE R MOS T BUS I NE S S E S S E E THE L EGAL FUNCT I ON AS AN ENG I NE OF GROWTH . I T I S P R I MAR I LY S E EN AS AN OVE RHEAD, BUT A WE L L - R E SOURCED L EGAL T EAM CAN DR I VE GROWTH I F THE B E S T QUAL I TY P EOP L E AR E P LACED I N THE R I GHT PART OF THE ORGAN I SAT I ON.
DE P ENDENT ON B E I NG AB L E TO NEGOT I AT E I N VE RY D I F F I CULT ENV I RONMENT S WI TH DEMAND I NG
Anonymous General Counsel
P ROCUR EMENT CHAL L ENGE S .
AF R I CAN MARK E T S HAVE B E EN SUCCE S S FUL FOR US , BUT THE CHAL L ENGE S P R E S ENT ED BY GEOPOL I T I CAL AND CORRUP T I ON R I S K AR E MOR E S I GN I F I CANT THAN ANYWHE R E E L S E WE HAVE EXP E R I ENCED. WE AR E DEAL I NG I N COMP L EX S TRUCTUR E S AND I T CAN B E CHAL L ENG I NG TO COMMUN I CAT E COMP L EX I T I E S OF I DEAS I NTO DE L I VE RY. WHE R E AP P ROP R I AT E WE WI L L DE P LOY S TAF F LOCAL LY, AND T ECHNOLOGY HAS HE L P ED WI TH V I RTUAL CONF E R ENC I NG AND SHAR I NG OF I NFORMAT I ON. GOOD LOCAL PARTNE R S AR E K EY TO GE T GOOD ADV I CE ON LOCAL LAWS , BU I LD I NG R EGULAT I ONS , VAT E TC . WE LOOK AT THE WOR S T- CAS E S CENAR I O AND D I S CUS S WI TH OUR PARTNE R S WHAT R I S K THEY S E E I N T E RMS OF F RAUD, R E PUTAT I ON E TC . R E PUTAT I ONAL R I S K I S AN I MPORTANT FOCUS AS DAMAGE I S POT ENT I AL LY VE RY HARD TO UNDO.
SUCCE S S COME S F ROM THE BAS I C E L EMENT S : I NT E L L I GENT P EOP L E WI TH GOOD J UDGEMENT MAK I NG THE R I GHT DEC I S I ONS AT THE R I GHT T I ME .
Anonymous General Counsel
S EN I OR P EOP L E I N THE L EGAL T EAM I S AN ADVANTAGE – THEY CAN CUT THROUGH AND GE T TO THE R EAL I S SUE S . THEY CAN EXT END B EYOND A P ROCE S S DR I VEN AP P ROACH AND DE L I VE R THE DYNAM I C AND AG I L E OUTCOME S THAT COMPAN I E S WANT.
Gary Davison, Legal Director and Company Secretary, AKT II
Ronald Cheung, Legal and Risk Management, Fung Group
Anonymous General Counsel
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