A textile manufacturer retained RBG Global to provide strategic advice on assessing and managing political, regulatory, and legal risk exposures to its existing projects in Honduras and Nicaragua.
RBG Global’s initial assessment of the client’s operations in both Central American countries revealed that one of the host governments recently retracted a tax benefit and that the company was concerned about host government interference with existing operations in the free zone. RBG Global performed a regulatory risk analysis: assessed the nature of the political parties and the structural framework of each host country. Based on its review, RBG Global recommended a risk management plan that included scenario planning and strategies for deterring host government intervention.
RBG Global helped the client implement internal controls that ensured regulatory compliance. RBG Global also ran through three emerging risk scenarios and implemented step- by-step protocols for minimizing risk exposures by adapting to political and regulatory changes.