Issue 13 Pearls of Wisdom - November 2005 Risk Management "Take calculated risks. That is quite different from being rash." George S. Patton There are many challenges to effective risk management when conducting business worldwide. One needs to become familiar with varied cultures and to gather local intelligence that is current and credible. The events of September 11, 2001 prompted higher standards for corporate risk management and liability. Because of the subsequent events, the United States is often depicted as "Public Enemy #1" in many parts of the world. US companies operating in these areas must take extra care to mitigate risks associated with doing business. The following is an outline of the risk management process 1. Identify Threats 2. Evaluate and Assess Threats 3. Set Acceptable Level of Risk 4. Reduce Exposure 5. Monitor Situation 6. Respond as Appropriate To identify threats check country information using the Internet. A good place to start is this site put out by the State Department http://www.state.gov/r/pa/ei/bgn/. For travel warnings visit http://travel.state.gov/travel/cis_pa_tw/tw/tw_1764.html. The individual US Embassy sites also offer valuable local information and contacts. For a directory of US embassies visit http://usembassy.state.gov/. To reduce exposure to risks associated with doing business in a foreign country the following are some individual actions that you and/or your employees can take depending on the level of security needed. Practice good travel safety and security. Know your profile. Understand local culture. Maintain contact with the home office. Understand your emergency plan. Practice good travel safety and security Understand local customs. Carry important documents securely and have appropriate contact information. Be prepared for the unexpected and know where to turn in the event of an emergency. Know ho to handle official corruption. Know where you are going and where not to go. Know your profile Be wary of routines. Vary your habits and travel schedules including route and travel times to and from the office. Stay away from known government, official or embassy hangouts. Try not to look like the "ugly expat". Stay alert and report any/all suspicious activity to appropriate authorities. Understand local culture Unless you are familiar with your surroundings you will not be able to recognize trouble. Understand what is normal activity and what is unusual activity. Read the local newspapers and watch local television. Know whom to trust. Know how to maintain communication when things go wrong. Maintain contact with the home office Keep senior management abreast of emergent political problems. Maintain a regular call-in schedule. Memorize your contact numbers. Have a back up plan if contact is lost. Understand your emergency plan Know your responsibilities and how to react in the event of an emergency. Have emergency supply rations as well as emergency plan for your family. Know where to go and whom to contact in the event of a crisis. return to Pearls of Wisdom web development by www.maineinfo.net