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Brexit – Opportunity or Threat?

20th June 2018

Brexit – Opportunity or Threat?

Set to leave the EU on 29 March 2019 this is less than a year away, with negotiations still in full force. Even with the transition deal announced in March 2018 allowing Britain to stay in single market until the end of 2020, many firms are finding that uncertainty surrounding leaving the EU is adversely affecting their ability to forward plan and to manage increasing supply chain costs.

For many years UK businesses have used the single market to move goods freely without tariffs or restrictions, providing Finance Directors with a predictable framework for business planning. Uncertainty around the “type of Brexit” that will finally emerge, whether on the subject of post-Brexit trade deals, the imposition of tariffs or potential increases in operating costs, will make business planning more onerous for the Finance Director.

Even though the transition arrangements have given a degree of stability during negotiations, the leaving process with all of its ups and downs remains an agenda item for all business executives involved in strategic planning to 2021 and beyond.

In order for a business to prosper throughout this period, it is essential for financial directors to plan. They should ensure that the company is adequately prepared for a variety of potential Brexit scenarios and create comprehensive contingency plans.

Brexit also has the potential to offer opportunities. If approached in a proactive manner, financial directors can use this period to identify opportunities for innovation, plan for new markets, and focus on the potential for growth.

So is Brexit an opportunity or threat? I suppose that the answer is yes to both options. What is clear is that Finance Directors must be able to plan for a variety of scenarios and have the ability to revise plans easily as parameters change. Those businesses emerging strongest post-Brexit will without doubt be the ones who were most agile, most flexible and most able to revise the business plan in line with complex changing internal and external factors.

Redland Information Systems provides a Corporate Performance Management solution, offering Planning, Budgeting and Forecasting capabilities to those businesses wishing to improve business planning. Who knows, Brexit may become your Opportunity where others see it only as a Threat.

To find out more call Paul Cooper on 07952 207546.

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