Quarter of a million pounds of sales in the Middle East for risk management consultancy

Warrington based Risktec Solutions expands its training and education business into Middle East markets with the help of UKTI's Export Marketing Research Scheme.

The Japanese tsunami and the BP Gulf of Mexico oil spill are reminders of the potential for both natural and manmade disasters to cause major loss of life and environmental damage. Risktec Solutions Limited is a risk management consultancy working with major hazard industries, such as oil and gas, nuclear and defence, to help clients manage risks to health, safety and the environment. The company analyses engineering design to look for weaknesses, as well as examining management systems, organisational culture and leadership behaviours.

In 2009, Risktec set up a training and education service to share its expertise in risk management. The company developed a Master of Science degree in Risk and Safety Management, validated by Liverpool John Moores University and delivered by Risktec’s team of risk management consultants. Uniquely, the training can be delivered at a company’s own premises, rather than by trainees having to attend university. The Knowledge Transfer Partnership between Risktec and Liverpool John Moores was accredited as outstanding by the UK Technology Strategy Board – one of only a handful to receive this accolade - and it received the best partnership award for the North West.

A year later, Risktec began looking for new markets for the training and education business and identified the United Arab Emirates (UAE) and Oman as having considerable potential. The Middle East has a young and fast-growing local workforce, which lacks the necessary risk and safety skills for major hazard industries. Coupled with this, the region has increasingly stringent regulations and a government-backed drive towards Emiratisation (a reduction in dependency on expats by encouraging the development of young people from UAE).

Risktec already had a presence in UAE as risk management consultants, however, it wanted to research the potential for its education and training offer. International Trade Adviser, Paul Wilcox recommended the Export Marketing Research Scheme, which provides advice and grant funding for eligible companies to research potential export markets.

Risktec Director, Steve Lewis comments: “We found the Export Marketing Research Scheme very helpful. Applying for the scheme forced us to take a more formal approach to planning our research than we might otherwise have done. The application process was comprehensive but not onerous. We weren’t expected to write reams and reams but to produce a succinct and focused proposal.”

Risktec’s training leader, Roisin Smyth, visited UAE and Oman, talking to the Abu Dhabi National Oil Company (ADNOC), engineering contractors, petroleum associations, universities and the nuclear regulator. She was keen to establish the potential market size, to determine whether people preferred the idea of online or face-to-face training, to ascertain who the competitors were and, ultimately, to decide whether it was worth dedicating the resources necessary to develop the market.

The research confirmed what Risktec had expected. The UAE’s young workforce and drive towards Emiratisation presented an excellent opportunity for risk management training. UK educational standards were highly-regarded and, while face-to-face training was the more common approach, there were also opportunities for more cost-effective online distance learning. While there was no specific requirement for training to be UAE-accredited, it would improve Risktec’s credibility and remove a possible barrier to entry if the company’s training programme were to become accredited. Risktec was accustomed to adapting its training materials to meet the needs of particular industry sectors and this was deemed sufficient, without having to make them country-specific.

Risktec returned to the UK and immediately began marketing its training services to companies across UAE and Oman. Within weeks, it had signed up the UAE national nuclear regulator for a UK-based MSc education programme. The regulator also assisted Risktec in its bid to gain UAE accreditation for the programme, which was achieved within three months.

Individuals from UAE and around the world will be joining Risktec’s first online training postgraduate course, beginning in November 2011. The company is appointing a marketing specialist to assist it in promoting its distance learning courses overseas.

This year alone, Risktec has achieved sales of £250,000 in training and education services across UAE and the Gulf states, including national oil companies and engineering contractors. The fact that the company is already well-known and respected as a provider of risk management consultancy services has given it a head start in the region and enhanced its credibility as a training provider. In time, Risktec hopes that its alumni will become future clients for its consultancy services.

Steve concludes: “UAE has not been without its challenges. There is a history of low price, low quality training in the region and we have to make it clear that we are not competing at this level but providing high quality, postgraduate training which is priced accordingly. People quickly appreciate the difference.

“We anticipate that the Middle Eastern market will continue to grow as all countries in the region seek to reduce their dependence on expats. We are committed to sharing our knowledge with clients in these markets. We are also looking to expand into other countries, particularly within the nuclear and oil sectors. I plan to use the Export Marketing Research Scheme again to research Kazakhstan and Saudi Arabia.”

Contacts

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