Investors evaluating a large company–particularly one that is
considering outsourcing manufacturing processes to a developing nation–should
first try to gauge its ability to manage the risk of corporate espionage.
Investors should ask:
• What investments is the company making to
protect its intellectual property?
• Does the company have a policy in which
only widely available technologies will be utilized at foreign manufacturing
locations?
• Does it limit employee access at overseas
facilities?
• Does it limit internal computer network
access at those facilities?
Smaller companies are dependent on a few products. An
unforeseen compromise of their IP can lead to disaster. Investors should
ask:
• Does the company rely on just a few
specialized products?
• Does it have competitors that might be
interested in stealing its technologies or other IP?
• Does it have a seasoned security team in
place?
• Does the company’s business plan include
accounting for malicious acts of espionage?
Finally, all companies should conduct annual security audits. They should
also employ pedigreed security managers integrated into all aspects of strategic
planning.
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