Preparing for Uncertainty
While the deadline may still be in question, Brexit has been etched in United Kingdom (UK) consciousness as a moment in time that will fundamentally change the UK as we know it.
“Brexit day” is when the UK will leave the European Union (EU) and embark on a journey that will impact the make-up of its citizens, how it trades with the EU, and what rules and laws it needs to adhere to in relation to the EU.
The arrangements we have in place ahead of Brexit day – whether a “Withdrawal Agreement” or no deal at all – will determine how much time we have to prepare for these changes.
At time of publication, Brexit has been postponed from 29 March to either 12 April or 22 May (dependent on the acceptance of current elements of the deal) to accommodate further negotiations between the UK and EU.
With all of the uncertainty surrounding Brexit, it is imperative that businesses keep their eyes on the potential impact that Brexit will have on risk and insurance issues.
There are some key areas companies should be considering, including:
- Market volatility.
- Material change in risk.
- People issues.
- Passporting issues.
- Changes in the legal and regulatory environment.
Companies should have strategies in place to address the various outcomes over the coming weeks, and a clear plan for a “No Deal” Brexit eventuality, as a “No Deal” Brexit allows for no transition period at all.
Brexit Risk Insights
The uncertainty that organisations face from various Brexit scenarios extends into their workforce strategy, particularly around talent availability. The resource issue is especially significant in such sectors as agriculture, construction, education, health care, hospitality and leisure, and retail which all rely heavily on migrant workers.Read more
With the precise terms of the UK’s departure from the EU still unclear, businesses have been left in a swirl of uncertainty. How will it impact the construction sector?Read more
With uncertainty around Brexit, many retail, food and beverage industry businesses are changing stock holdings and logistics.Read more
On 29 January, members of the UK Parliament voted on key amendments to the Brexit Withdrawal Agreement. The majority of MPs voted that the UK should not leave the EU without a Withdrawal Agreement, and that a modified version of the Agreement should be negotiated with the EU.
While UK Parliamentary decisions are being made there are still three potential outcomes when it comes to Britain leaving the European Union (EU): A deal, no deal, and no Brexit. Although the state of play may change, as long as there is potential for a no deal Brexit, organisations should continue to plan on this basis.
3 Areas of Focus for Risk Managers
With the UK vote to exit the European Union (EU), risk managers need to be aware of three critical areas post-Brexit. Learn more about them in our full infographic.