Risk Identification & Register

Start with a basic risk register covering the main risk categories (geopolitical, operational, financial, legal, cultural) for each country or project. For example, list risks like “currency fluctuation in Brazil” or “supplier delay from China” or “product approval delay in EU”. Keep it simple: for each risk, note a short description, likelihood (e.g., low/med/high), impact (low/med/high), and current mitigation. This document should be reviewed periodically (say, quarterly) and updated as things change.

Basic Policies and Training

Develop a code of conduct and essential compliance policies (anti-bribery, safety, information security) that apply to all operations. At Stage 1, this could be a 10-page handbook and a yearly training session for employees – not heavy, but enough to set expectations. Make sure every employee knows the critical do’s and don’ts (e.g., “we do not pay bribes, no matter what” or “follow the trade compliance checklist before shipping to a new country”). This prevents many legal/compliance risks by establishing a baseline of acceptable behavior.

Simple Monitoring Routine

Assign someone (or a small team) the responsibility of monitoring international risk news relevant to the company. This could be as informal as a daily Google Alert or reading an industry newsletter. For instance, if you operate in the UK and China, watch for news on Brexit changes or China tariffs. At Stage 1, you might not have sophisticated tools, but staying informed on big developments allows a basic early warning. If something big appears (say a new regulation), the company can then research more and react.

Insurance and Risk Transfer

Purchase basic insurance to cover common risks. This often includes property insurance (for facilities/inventory), liability insurance (product liability or public liability in case of lawsuits), cargo insurance for international shipments, and possibly a fidelity policy (to cover employee fraud). Insurance is a straightforward way to transfer risk for a manageable premium. For example, if you’re exporting goods, cargo insurance ensures that you're financially covered if goods are damaged in transit. Similarly, a general liability policy in the U.S. can cover legal defense if someone sues your product. These do not prevent incidents but cushion the financial impact.

Contingency Plans for Minor Disruptions

Identify the most likely day-to-day disruptions and prepare simple contingency responses. For operational issues, this might mean: “If Supplier A cannot deliver, use Supplier B (even if cost is higher, for short-term).” For IT issues: “If our cloud service goes down, have an on-premise backup of critical data.” For travel issues: “If a key manager can’t travel due to visa delay, have a deputy who can handle things via video call or local interim managers.” These are basic one-page plans that ensure business continuity for short interruptions (a few days or weeks). At Stage 1, you don’t need exhaustive disaster recovery protocols, but you should have thought through the most probable hiccups so you’re not scrambling from scratch when they happen.

Clear Roles & Communication

Make risk management an explicit part of someone’s job – even if not a full-time risk manager. It could be the operations manager tasked with also coordinating risk mitigation, or the CFO handling financial and insurance risks, etc. The team should know: if a risk event happens, who leads the response? And leadership should be informed promptly. For example, if a small product recall is needed in one country due to a regulatory issue, Stage 1 practice would dictate that the quality manager informs the CEO/COO, initiates the recall according to a pre-thought checklist, and communicates with affected customers. Basic communication protocols (whom to call, email templates for notifying partners) can be prepared for common events.

Outcome

The company has a foundation of risk awareness and preparedness. Employees are cognizant of daily risks and act to avoid obvious pitfalls. The firm can handle minor shocks without panic – a delayed shipment, a sudden staff departure, a minor regulatory fine – because it has some buffers and plans in place. Essentially, Stage 1 keeps the ship afloat and pointed in the right direction by preventing avoidable problems and managing the small storms. It’s akin to installing smoke detectors and having a fire extinguisher: most days they’re not needed, but if a small fire sparks, you can put it out fast. This stage aligns with a defensive posture – it’s about preventing losses and “not doing anything foolish.” As one might say, it covers the low-hanging fruit of risk management.