Interim Management: The Key to Navigating Export Controls and Sanctions

Swiss Interim Management GmbH supports companies in the field of global regulations

Export Controls: An Overlooked Risk with Serious Consequences? 

For years, a Swiss company has been exporting machinery abroad without any issues—until suddenly, a regulatory investigation looms. What was once a routine business process can quickly become an existential threat due to stricter export laws, new sanctions, or weak compliance measures. 

A well-known example is the German company Infineon, which came under scrutiny in 2023 due to U.S. sanctions when its semiconductors were found in Russian military drones—despite an EU embargo. This case highlights the severe consequences of even indirect supply chain connections, from international trade disruptions and hefty fines to operational restrictions.

The risks are even greater when suppliers operate in politically sensitive regions. Companies like Huawei and SMIC (Semiconductor Manufacturing International Corporation) have recently faced U.S. sanctions, severely impacting their relationships with Western partners.

To stay ahead of these risks, businesses must continuously update their export controls, implement robust risk management systems, and closely monitor regulatory changes—because ignorance is no excuse under the law.

The Importance of Export Controls 

The global trade landscape is evolving rapidly. Companies are under increasing pressure to comply with international export regulations to avoid sanctions and legal repercussions. A 2023 study by the World Economic Forum indicates that trade conflicts and protectionist measures are on the rise, forcing companies to rethink their compliance strategies.

As Andreas Roos emphasized in an interview with Swiss Interim Management, many Swiss SMEs underestimate the need for comprehensive export controls. They often rely on their familiarity with customers, but international businesses with thousands of clients face stricter due diligence requirements. Countries like Germany already enforce more rigorous export control systems than Switzerland, and violations can lead to severe fines and reputational damage.

A recent case underscores the gravity of the issue: Two Zurich-based lawyers were placed on a U.S. sanctions list—a stark reminder of the potential consequences of inadequate export controls.

Technology, Sanctions, and Emerging Trade Conflicts

Trade restrictions are increasing, and protectionist policies—such as the Trump administration's 25% tariffs on European goods—demonstrate how political decisions impact global commerce. Businesses must not only navigate rising costs and new market barriers but also adapt their supply chains accordingly.

One key example is the semiconductor industry: The U.S. has added Chinese firms like SMIC to its Entity List, limiting their access to Western chip technology. In response, China has tightened export controls on materials essential for chip production. These geopolitical shifts demand a proactive compliance strategy.

At the same time, regulatory authorities are ramping up enforcement efforts. Technologies like artificial intelligence are being used to monitor trade flows, analyze customs data, and detect violations more efficiently. According to a 2023 PwC study, 68% of global companies already use AI-driven compliance systems for early risk detection.

Fit for Export: Why Companies Must Act Now 

The challenges in export management are multifaceted, from sudden tariff changes to evolving sanction mechanisms. Companies must refine their processes to mitigate risks while seizing opportunities.

A major issue is the lack of clear procedures and expertise. Experts warn that weak export control programs are among the biggest threats in international trade. Businesses should invest in structured compliance programs, including:

✔️ Training employees on export regulations

✔️ Adjusting supply chains to meet new regulations

✔️ Implementing internal control systems to prevent risks

✔️ Ensuring full traceability of suppliers and financial records

Failing to meet these standards exposes companies to significant reputational and legal risks. Boards and executives must prepare their organizations for external audits to avoid sanctions.

Interim Management: A Key to Compliance

The growing complexity of international trade regulations presents major challenges for businesses. This is where interim management can make a critical difference.

Experienced professionals like Andreas Roos help companies modernize their export control processes and identify compliance risks early. Interim managers not only support strategic realignment but also implement operational measures—whether introducing new processes, adapting to regulatory changes, or training teams.

How interim managers can help:

 ✔️ Conducting risk assessments and reviewing current export strategies 

 ✔️ Training teams and implementing new compliance processes 

 ✔️ Supporting companies during regulatory audits and inspections 

Companies that proactively invest in compliance measures not only protect themselves from legal risks but also strengthen their position in international markets. Because those who are unprepared today may face unexpected consequences tomorrow.

Request a free initial consultation to explore how you can optimize your export control strategy.