Navigating the United States' national security requirements under CFIUS
In today’s interconnected world, trade tensions and regulatory policy are further complicating an already complex economic ecosystem. While the US remains a global superpower and a destination for significant foreign direct investment (FDI), the open investment policy and the protection of US national security interests have created a regulatory paradigm.
The high-value investment targets within the US, particularly in critical technology, data-rich industries and critical infrastructure sectors, have created an environment where dynamic compliance strategies are imperative in deal considerations. Control Risks helps clients to evaluate and mitigate the risks of global trade, with a focus on maximizing opportunity value.
As these trade policy, cyber security and regulatory challenges rapidly evolve, risk-profiling a potential FDI can be overwhelming. At Control Risks, we believe that intelligent risk-taking is a necessary part of any successful business strategy. We help to build organizations that operate securely, are truly compliant and have the resilience to manage the challenges of a rapidly changing global marketplace.
Control Risks’ unique blend of geopolitical, regulatory, technology and cyber expertise provides us with a distinct advantage to advise on matters of CFIUS and international trade compliance.
Whether you are in the early stages of exploring a covered transaction under CFIUS jurisdiction or in need of an independent third party to assess compliance with a mitigation agreement, we have the regulatory experience, cyber security capabilities and independent standing to support your CFIUS-related needs, including:
Deal risk diligence (intelligence)
Evaluate the national security risk(s) inherent in a transaction, including assessments of company operations, subsidiaries, supply chain, corporate security posture, information technology and network architecture, and internal controls. The assessment provides companies with real insight based on language, country, research and commercial expertise.
Third-party auditor (TPA)
Perform an independent audit to evaluate compliance with stated mitigation terms within a national security agreement (NSA), letter of assurance (LOA), order of divestiture or other stipulated mitigation agreement.
Third-party monitor (TPM)
Perform independent monitor services to evaluate compliance with stated mitigation terms within an NSA, LOA, order of divestiture or other stipulated mitigation agreement.
Strategic mitigation advisor
Control Risks helps companies redesign their business-focused investment strategy by integrating national security considerations with economic decision-making. This key strategic advice includes:
- Developing governance and compliance models to meet mitigation requirements as set forth by CFIUS or during term sheet negotiations, including assistance with compliance optimization, audit readiness and meeting reporting requirements.
- Evaluating risks to national security posed by a transaction and developing a monitoring plan to mitigate the identified risks.
- Assisting with the evaluation of potential mitigation options as well as the cost of development and operationalization of compliance solutions.
- Developing and deploying a third-party assessment and monitoring plan (TPA&MP) throughout the enterprise in accordance with CFIUS compliance requirements.