Doing business in Mexico can be complex and some other times unpleasant. Mexico ranked 103 of 138 countries in the Irregular Payments and Bribes indicator of the 2016-2017 according the World Economic Forum of Global Competitiveness Index. Nowadays, in 2024 the situation has been worsening day by day.
Not all Mexican Corporations or Mexican Individuals are involved in criminal activities.
However, it’s imperative to develop a continuity strategy to mitigate risks, avoiding potential and unpleasant surprises doing business with Mexican Individuals and Mexican Corporations.
Building a circle of trust it’s so important, but it is also important to develop close business relationships with your potential Mexican clients, Mexican Distributors, Mexican providers, and Mexican business acquaints.
However, creating a circle of trust. Shouldn’t be confused with accepting corruption strategies transferred from these entities in Mexico towards you.
Considering the use of our Corporation reports and Individual reports with legal actions, proceedings, and verifications of Mexintel, will provide a safer environment for your business.
Becoming your 1st step verification on your Mexico’s Risk mitigation strategy. Helping you to visualize legal records from those Mexican Corporations and Individuals. Preparing you for lessen the effects of threats transferred by a Mexican Corporations or Mexican individuals, to your environment.
What is Risk Reduction?
In other words: A systematic reduction in the extent of exposure to a risk and/or the likelihood of its occurrence. It’s also called risk reduction.
Comparable to risk reduction, risk mitigation takes 5 Strategy steps to reduce the negative effects of threats and possible disasters on business continuity.
1. Accepting the Risk
Accepting the risk means that while you have identified a known risk. You simply accept that it might something happen and decide to deal with it if it does.
2. Avoiding the Risk
In order to avoid a potential risk, you may change your plans completely. Avoiding a risk, is a good strategy for when a risk has a potentially large impact on your plans or projects.
3. Transferring the Risk
Transferring the risk is definitely a risk management strategy and it’s more common in situations where there are more parties involved.
In other words: You transfer the impact and management of the risk to someone else.
4. Mitigating the Risk
Mitigation the risk means, that you limit the impact of a risk, so that if it does occur, the problem it will create will be smaller and easier to fix and the easiest to implement.
5. Exploiting the Risk
Sometimes good things happens after all. Reducing Risks understanding the last 4 strategy steps: Acceptance, Avoidance, Transference and Mitigation are the best solution when facing a negative impact in your plan or organization.
However a negative impact can become in to a positive impact. And sometimes, we need to analyze all the possibilities in order to take advantage exploiting this “Negative situation” turning it in to a positive opportunity.
