Venezuela: when a market changes
The situation
Concerned by growing operational risks due to the volatile economic and political situation in Venezuela, a leading international FMCG company decided to suspend its operations in the country, having already deconsolidated Venezuela assets from the company’s balance sheet. Noting Control Risks’ strong record of advising companies in Venezuela on contingency plans in the case of asset seizures and personnel arrests, the client retained us to help it plan and manage the process.
Control Risks' approach
It was important for the client to maintain as much confidentiality as possible to avoid the risk of disruption to the process and fulfil duty-of-care obligations to all persons involved. Working back from the chosen completion day, we shaped process through workshops with the client team in a neighbouring country. Our political and security experts worked with the client to identify the key assets that required safeguarding. Working through numerous scenarios, contingency plans were drawn up and the process was refined to a programmed outcome. Integral to the plan was the maintenance of information security, communications management and confidentiality. As the client employed a lot of Venezuelan nationals, their safety and that of the shuttered facilities was key.
The outcome
We were able to securely and effectively communicate the suspension process across an extensive employee and site network. The wellbeing of employees remaining in country was managed in the aftermath of the closure. Our successful management of the process meant the client was able to wind down its Venezuelan operation with the least possible disruption and focus its resources elsewhere as part of it ongoing growth strategy.
