Global Projects Risk Assessment
The following are additional risk management topics to be considered for global or multinational projects. They reflect actual COMPANY experience, and the PM must ensure each are analyzed for this project.
Common Past Occurrences with Global Projects
These problems have been observed on multinational projects in the past. The Project Manager must work with subject matter experts from the BU-GAM and WFO infrastructure organizations to identify and manage these risks. Risk mitigation strategies will typically involve appropriate application of current PM, Sales Process and Global Account Management processes.
More information on these risk events, and risk mitigation recommendations, are available from the Global Account Management consultants or their web page.
– GAM not engaged early enough to support and structure the opportunities
– Opportunities do not fit COMPANY Global Transaction Models and do not have adequate infrastructure support (primarily from WFO Operations Services)
– Value Added Tax (VAT) collection infringements
– Taxes not recoverable by our customers
– Permanent Establishment (PE) tax exposure if equipment is moved through an intermediate location
– Export compliance control liability
– EU Pricing Homogeneous Directive Infringements
– Project Managers not assigned, cost not recovered as part of sale
– BU’s don’t have visibility of pricing issues and nor reviewing bid P&Ls
– Countries refuse to participate and bear the Gross Margin burden of inbound business
– Country A forces Country B into a loss position with over-aggressive global pricing
– COMPANY acts an unlicensed importer of record, for product where the commercial interested has (should have passed) to the customer:
– Legal infringement
– Administration cost
– tax liability (Permanent Establishment)
– Countries exporting to channel competitors in other countries
– Account teams qualifying out good opportunities
Distributor or reseller countries not properly included in planning, or committed to same contracted performance levels
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