27 Jun International operations in times of crisis: How to minimize risk?
Expanding internationally opens the door to new markets, diversified revenue streams, and scalable growth. But it also comes with complex risks: supply chain dependencies, political instability, regulatory differences, trade tariffs, and limited control at destination.
Recent events such as the COVID-19 pandemic, the war in Ukraine, new U.S. tariff policies, and the conflict in the Middle East have clearly exposed these vulnerabilities.
What did the pandemic teach us about international management?
COVID-19 caused an unprecedented disruption to international subsidiaries. From a management perspective, the key challenges were:
• Border closures and lockdowns, which made on-site oversight from headquarters impossible. In some cases, repatriation of expatriate staff brought local operations to a halt.
• Lack of remote management systems, as many companies lacked the tools to make effective decisions from a distance.
• Uncertainty around rapidly changing legal frameworks, with companies unaware not only of how to anticipate regulatory adaptations, but how to turn them into strategic advantage.
Key takeaways:
• Companies with robust digital infrastructures were able to maintain operational continuity.
• Subsidiaries with delegated management or empowered local teams proved significantly more resilient and adaptive.
Geopolitical risk: from exceptional to structural
Geopolitical tensions have become a structural factor in international decision-making:
• The war in Ukraine forced many companies to shut down operations due to security concerns and logistics breakdowns.
• The U.S.–China trade war has reshaped global supply chains and forced firms to rethink sourcing strategies.
• In April 2025, the U.S. government announced a 10% general tariff on all imports, and a 145% tariff on Chinese goods, significantly increasing operational costs across strategic sectors (The Washington Post, 03/04/2025).
• As of June 23, 2025, Europe is still awaiting final tariff terms to be agreed upon with the U.S. administration.
• In parallel, high geopolitical tensions in regions like the Middle East (Israel–Iran), the Taiwan Strait, and the India–Pakistan border are increasing systemic risk in global trade flows.
How to mitigate these risks ?
- • Ongoing country, logistics, and tax risk assessment, led by local and international experts, to anticipate disruptions and define practical responses.
- • Delegated management with local experts, to implement fiscal and operational adjustments quickly and without diverting core resources.
- • EBITDA impact simulations, with fiscal modelling tailored to the group’s international structure, minimizing global tax exposure.
- • Real operational execution: diagnosis is not enough. A partner on the ground—not just external advisors—means your business can act fast when needed.
Best practices for resilient international management
- ✔ Continuous monitoring of political, regulatory, and tax risk
✔ Rapid activation of contingency plans
✔ Use of digital tools for reporting and control
✔ A local partner that understands both the local environment and group standards
✔ Structured delegation of administrative and financial operations
Delegation is protection
Delegating administrative and financial functions to a qualified local team not only increases efficiency: it also reduces critical errors, ensures regulatory compliance, and frees leadership to focus on strategy and growth.
What makes Biznelp different?
Biznelp is not a consultancy. It is a delegated management structure specialized in foreign subsidiaries.
We execute—precisely—all the administrative, accounting, tax, and labour operations of your subsidiary in Spain or Latin America.
We handle setup, day-to-day operations, and group-level reporting.
We do it fast, with quality, and through a single point of contact.
We minimize your risk and prevent crises from turning into costs.
No Comments