ECGD derives its powers from the Export and Investment Guarantees Act 1991 (c. 67) and undertakes its activities in accordance with specific consent from HM Treasury.

ECGD is required by the HM Government to operate slightly better than break even, by charging premiums from exporters at levels that match the perceived risks and costs in each case.

The largest part of ECGD's activities involves underwriting long-term loans to support the sale of capital goods, principally for the export of aircraft, bridges, machinery, and services; it helps UK companies take part in major overseas projects such as the construction of oil and gas pipelines and the upgrading of hospitals, airports, and power stations.

ECGD seeks advice on arms sales from the United Kingdom Export Control Organisation (ECO), part of the Department for Business and Trade.

In February 2016, the head of the Export Control Organisation, Edward Bell, advised Business Secretary Sajid Javid that Britain should suspend arms sales to Saudi Arabia.