Brexit Impacts

Mitigating the Brexit challenges through proven methodologies. “Are you doing the right things and are you doing them well?”

Focus on:

  • Business continuity
  • Managing uncertainty
  • Managing external factors
  • Managing risk (reputational, financial, market, supplier, customer, legal, regulatory, tax, etc.)
  • Highlighting resourcing challenges
  • Other strategies

Brexit Challenge:

  1. The single most significant political event for the UK and European Union in 40 years
  2. Untried and unknown process creates unpredictability
  3. Timeline: transition period to run to end of December 2020 with timeline unlikely to be extended. Analysts estimate that there is still 40% chance of a no-deal. Unlikely that trade deal can be negotiated within transition period
  4. Failure to agree results in UK reverting to World Trade Organisation (WTO) Rules. WTO does not cover financial services
  5. Consequences: Undoing 40 years of commercial practice and embedded corporate behaviours with the potential to create inertia within the economy and institutions with consequences for businesses of all scale
  6. Change of Perspective: Consider the changing dynamic of the UK's relationship with the EU as a whole and with individual member states. Consider the UK's relationship with the rest of the world and then reverse the prism to consider how the rest of the world will define their relationship with the UK
  7. Political Risk is a more significant factor in the UK than any time since the 1970's
  8. Information overload, distinguishing rhetoric from fact
  9. Knowing what to do and when to act

Business Challenges:

  1. Exploit business opportunities
  2. Ensure business continuity and resilience
  3. Minimise business risk and cost
  4. Satisfy employees, suppliers, customers, regulators, funders and shareholders that the organisation is "Brexit ready"
  5. Retain key resources
  6. Make sense of Brexit and shift the focus to a post Brexit marketplace

When to use SoluxR?

  1. You need an independent, data-driven, review
  2. You have limited capacity to address Brexit
  3. You are time challenged to be "Brexit ready"
  4. You are missing skills and methods around Brexit
  5. You are facing complex Brexit challenges
  6. You need to inform public sector debate/context
  7. You need to influence your supply chain and/or customers to act
  8. Brexit is forcing you to innovate your business strategy and model
  9. Brexit is forcing you to significantly change your customer base and/or supply chain
  10. You are served by ill-prepared suppliers/partners
  11. You need to change your value proposition or create a new one for Brexit

Principal Outcomes from using SoluxR:

1. Direction setting: Executive & board agreement and understanding of major Brexit requirements including:

    a. Scenario analysis
    b. Critical risks, issues, opportunities and impacts
    c. Quantification of financial implications for an organisation (optional)
    d. Implications for current strategy and business model
    e. Risk modelling (optional - see 3 below)

2. Discovery:

   a. Brexit mobilisation
   b. Brexit analysis and planning: 
       i. Scenario analysis
      ii. Detailed evidence-based impact and risk assessment (across business/entire business model)
   c. Brexit strategy developed and aligned with existing strategic imperatives
   d. Brexit programme plan and governance defined

3. Risk modelling:

   a. Scenario analysis
   b. Stress testing

4. Contingency planning and execution:

   a. Potential for failure and disruption identified and analysed within business, customer base, supply chain and wider eco-system for major Brexit scenarios
   b. Strategic, financial and operational quantification of risks
   c. Crisis war gaming
   d. Risk mitigation strategy prioritised, defined and ‘desk stress-tested’ in line with organisation’s risk appetite
   e. Risk monitoring processes defined and established
   f. Execution of contingency plans 

5. Programme review:

   a. Brexit programme benchmarked and assessed versus best practice and organisation’s risk appetite
   b. Quality review of key planning assumptions, decisions, deliverables and progress
   c. Controls assurance & reviews
   d. Contingency plans reviewed versus current high probability scenarios
   e. Key programme risks and mitigating actions identified and defined 

Using Agile Risk Management (ARM) practices SoluxR delivers results at scale, in less time, at less cost, more effectively and more reliably than other methods.

Immediate results begin to emerge when practical issues are addressed against Big and Basic Questions (over 150 detailed questions are available) across:

1. Stakeholder Analysis including Brexit impacts, volumes and risks across stakeholders (customers, partners, suppliers, investors, banks etc.) and associated action plans
2. Products & Services impacted directly through tariffs or indirectly through customers, partners, suppliers etc.
3. Contract impacts including trigger strategies and trigger strategy action planning, renegotiation strategies and action planning, repapering and fallback strategies
4. Business Functions, process and systems impacts, risk assessments, overall and detailed action planning

Powerful insights from automated assessments conducted across large numbers of front-line decision makers have a hugely positive impact on the quality of thinking and decision making.

Steps: Dynamic links are distributed across the organisation, and its associated ecosystem of partners and suppliers to:

1. Initially map and scope the Brexit Impacts landscape. The more links that are shared across front-line decision makers the more automated assessments are undertaken. And, the more complete the enterprise wide picture of risks associated with the achievement of business objectives.

2. Thereafter decision makers undertake more assessments which over time produce automated trend analysis leading to deeper insights and enhanced scenario development and stress testing.

3. Consistently reliable enterprise wide (front-line) assessments conducted over even 2-3 quarter’s results in a pooling of information on trends and insights leading to an organisational ability to anticipate and respond to changing conditions ahead of less adaptive competitors.

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