Five Riskiest Countries for Global Operations – And You're Doing Business in Them

Nearly 78% of global organizations now operate across multiple countries, yet most remain unaware of the regulatory complexities building around their international workforce. The pattern is consistent: Regulations are becoming more complex, enforcement is intensifying, and the operational burden continues to grow. Understanding these challenges isn't about avoiding these markets; it's about operating in them strategically with the right support and expertise. Here’s what you should know about the five riskiest countries for global operations — and how to lower your risk if you need to hire in them.

The strategic challenge

The most attractive expansion destinations often present the most complex operational challenges. Organizations establish operations in these markets for compelling business reasons: Massive consumer bases, competitive costs, skilled talent, and strategic positioning. However, regulatory landscapes in these regions are evolving rapidly, creating compliance burdens that require specialized attention.

Organizations operating in these markets face five key challenges:

• Rapidly evolving labor laws with limited transition periods

• Regulatory violations that can halt business operations

• Significant financial penalties reaching tens of millions

• Reputational exposure from compliance failures

• Escalating compliance costs, which have increased HR expenses by 20-30%

Although operating in these markets can be challenging, rather than avoiding them entirely, successful organizations are implementing strategic risk management approaches. Formed on a country-by-country basis, these strategies are usually informed by the expertise of global workforce enablement partners, who can help organizations ensure compliant employment.

Five markets that require strategic attention

Every country has unique requirements that demand specialized knowledge and careful planning — but some have more compliance challenges than others. Here are five countries that stand out for having compliance risks that are escalating faster than most realize.

China

The world's second-largest economy continues to attract massive investment, but recent regulatory changes demand careful navigation. Foreign investment compliance deadlines that took effect in December 2024 require organizational restructuring, while labor costs are climbing 20-30% due to policy shifts. Data localization requirements under PIPL now mandate expensive infrastructure investments and ongoing US-China geopolitical tensions add complexity to sanctions compliance.

Russia

Beyond conflict-related challenges, Russia has hard-to-navigate sanctions requirements and an unpredictable legal landscape. The 17th EU sanctions package adopted in May 2025 continues expanding compliance obligations. "Foreign agent" designations create additional operational constraints, while banking restrictions risk complete exclusion from financial systems based on the US dollar.

Bangladesh

Ultra-competitive labor costs make Bangladesh attractive for manufacturing, but worker rights scrutiny is intensifying. With 85% of employment in the informal economy, compliance gaps create significant exposure. The ITUC 2025 Index lists Bangladesh among the top 10 worst countries globally for workers' rights, while new EU due diligence requirements are raising standards for international companies.

Philippines

English proficiency and established business processing outsourcing (BPO) infrastructure make the Philippines a natural expansion choice. However, ongoing worker rights challenges and evolving foreign worker regulations under DOLE Order No. 248 are changing operational requirements. Meanwhile, pending gig economy legislation could significantly impact how international companies structure local operations.

Türkiye

Türkiye's unique Europe-Asia position offers strategic market access, but regulatory complexity is increasing. New safety requirements mandate additional compliance infrastructure, while economic volatility affects operational predictability. The country's inclusion in the ITUC's top 10 worst for workers' rights reflects ongoing regulatory challenges.

Strategic approaches to risk management

When it comes to approaching risk management strategically, there's one key insight: You don't have to manage these complexities alone or abandon profitable operations.

For established operations: Organizations with significant presence in these markets are leveraging specialized expertise to handle regulatory complexities. This comprehensive support approach uses local specialists who understand both statutory requirements and cultural expectations—from navigating foreign investment compliance to managing benefits administration that meets evolving standards.

For workforce optimization: Organizations planning expansion or role relocations are strategically accessing lower-risk markets without traditional barriers. Using data-driven location optimization and for workforce optimization EOR services, they can establish operations in strategic markets quickly and compliantly, with no entity establishment required.

Both approaches transform defensive compliance challenges into strategic competitive advantages.

The expertise advantage

The most successful organizations recognize that compliance in these complex markets requires specialized knowledge and local expertise. Rather than building internal capabilities from scratch or accepting escalating risks, they're partnering with providers who have deep, established knowledge of local requirements and cultural nuances.

For instance, partnering with expertise advantage provides access to 400+ in-country experts who stay current with regulatory changes, understand implementation requirements, and can guide strategic decisions about where and how to operate most effectively.

Taking the next step

If your organization operates in any of these high-risk markets, understanding your specific challenges and strategic options should be a priority.

Whether you need comprehensive support for existing operations or strategic guidance for workforce optimization, the right expertise can help you operate confidently in complex environments while maintaining competitive advantages.

Ready to understand your strategic options? Learn more about hiring employees in these five countries and discover how our expert guidance can help you navigate compliance complexities while achieving your operational goals.

Learn more about these five countries

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