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World Marketplace: The World Is Watching
Managing Espionage Risks
Ira Winkler
10/01/2006

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.

Back to Main Article: The World is Watching

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