A corruption investigation in China
The China managing director of a leading multinational company contacted us to say his offices had been raided by the police. The Chinese authorities were accusing the company of corrupt activities in its business in China. Several senior executives had been taken into custody. There was a high degree of anxiety amongst the team in China and at an emergency meeting of the company's executive board. Furthermore, there were issues of business continuity and reputational risk as the media calls flowed in and the share price fell.
Control Risks' approach
We stepped in to lead and facilitate the running of the company’s crisis management teams at head office and on the ground, providing both tactical and strategic advice. We helped the client understand the scale of the problem and respond in a responsible fashion by conducting detailed scenario planning and developing short- and long-term stakeholder management and recovery strategies. Control Risks provided expertise on the critical political aspects of responding to different Chinese regulators. Our experts coordinated streams of investigation, information gathering, and scenario planning in the United States, the United Kingdom and China.
The company successfully survived the investigation and emerged with a revitalised compliance culture that set a path for durable growth in China. Our experts continue to provide guidance to senior executives in matters of Chinese regulatory enforcement, political and policy reform, government relations, strategic compliance, and risk management.