The Big Picture - Operational Risks in China

The situation

As a result of the recently introduced legal frameworks and changing geopolitical situation in China, we were engaged to support the client in evaluating the risk exposure from its business operations, technology design, and activities in China. The objective was to specify the actual risk picture and outline risk mitigating solution scenarios for executive leadership decision and risk appetite.

What we did

Over a six-month period, we led an extensive analysis covering information and compliance risks associated with the clients operating model in China, the geopolitical situation, the regulatory environment, as well as the technology and security footprint.  

We provided the client with a factual overview of the current situation, high-risk challenges, and suggested four distinct solution scenarios and a recommended high-level plan of action.

As a result, executive leadership chose the recommended solution, and we were further assigned to prepare a plan and in-depth analysis for this scenario.

The outcome
  • The client gained in-depth understanding of the operating risks and legal implications in China.
  • Based on the analysis, executive leadership approved a range of strategic activities to ensure appropriate risk mitigation.
  • We were engaged to support the execution of the recommended solution as part of a larger organizational governance setup.