Guide
Managing export business risk and corruption
UK Bribery Act compliance, due diligence on overseas buyers, political risk assessment, and IP protection abroad.
Exporting exposes businesses to risks beyond domestic trade: buyer non-payment, political instability, corruption, intellectual property theft, and contract disputes. Understanding and managing these risks is essential for sustainable international growth.
Adequate procedures defence
While companies face unlimited fines for failure to prevent bribery by associated persons (Section 7), you can defend by proving you had 'adequate procedures' in place. The Ministry of Justice outlines six principles: proportionate procedures, top-level commitment, risk assessment, due diligence on third parties, communication/training, and monitoring/review.
Self-reporting to SFO
New 2025 guidance: If you discover suspected bribery and self-report to the Serious Fraud Office while cooperating fully, you can expect to be invited to negotiate a Deferred Prosecution Agreement rather than face prosecution, unless exceptional circumstances apply.
Protecting your intellectual property overseas
IP rights are territorial. UK trademark registration only protects you in the UK. Most countries use 'first to file' systems, meaning whoever files first gets protection regardless of who used it first. This makes early registration critical.
Payment risk and export credit insurance
When exporting to higher-risk markets or unfamiliar buyers, consider UK Export Finance insurance covering up to 95% of losses from non-payment, insolvency, or political events. Letters of Credit provide bank-guaranteed payment security for high-value exports.