Practical: Guide to Preventing Security Risks for Chinese Enterprises Overseas
Release time:
2016-02-26
Source:
Sunshine Chuanyi Language Translation 2016-02-25
Table of Contents
Article 1: Organizational Leadership
Article 2: Employee Selection and Hiring
Article 3: Safety Training
Chapter Four: Risk Assessment
Chapter 5: Building a Secure Soft Environment
Chapter Six: Security Hardware Investment
Chapter 7: Daily Management
Article 8: Emergency Response
Chapter 1: Organizational Leadership
Cultivate awareness of risks and responsibilities.
Firmly establish the principle that “people-oriented and employee safety above all else,” and rigorously implement the safety responsibility system. Overseas enterprises must regard the protection of employees’ safety as a prerequisite for ensuring the smooth progress of projects. They should adhere to the working principle of “those in charge are responsible, and those who employ workers are responsible,” personally planning, refining measures, assigning responsibilities, conducting strict assessments, and ensuring that rewards and punishments are effectively implemented.
Improve the management system.
Effectively establish a three-tier overseas security risk prevention management system comprising the corporate headquarters, directly affiliated units, and overseas institutions, ensuring seamless coordination between front-line and back-office operations and tiered management both domestically and internationally. The corporate headquarters and directly affiliated units shall set up emergency command centers at corresponding levels, clearly designating departments to take overall responsibility for overseas security risk prevention. Overseas institutions shall carry out specific security management tasks, formulate detailed implementation rules, and ensure the effective implementation of safety accountability systems and preventive measures. Enterprises undertaking general contracting of overseas projects shall integrate all relevant overseas institutions and personnel of their subcontractors into a unified management system.
Improve institutional development
Based on the actual conditions of the enterprise, develop comprehensive, highly operational, and hierarchical regulations and systems for overseas security risk prevention. Establish an emergency response mechanism for unexpected security incidents abroad, formulate and gradually refine emergency plans, ensure that these plans are implemented at all levels, and enforce them rigorously. Strengthen the management of the entire process—identification, avoidance, handling, and post-incident follow-up—of overseas security risks. Strive to build a complete chain for preventing overseas security risks and achieve institutionalization and systematization of safety management for overseas projects.
Strengthen Party building overseas.
Attach great importance to the building of grassroots Party organizations overseas, make every effort to strengthen Party building in overseas projects and institutions, and enhance the creativity, cohesion, and combat effectiveness of Party organizations. Incorporate the prevention of overseas security risks into Party building work overseas and treat it as a key component. Fully leverage the role of Party organizations as fighting fortresses and the exemplary and leading role of Party members, thereby providing strong support for the work of preventing overseas security risks.
Article 2: Employee Selection and Hiring
Strictly select employees for overseas assignments.
We will adhere to strict screening criteria and prioritize employees with high political integrity, solid professional competence, and excellent personal moral character for overseas assignments, thereby avoiding unnecessary security risks caused by individual employee issues.
Adhere to localized operations.
Maximize the employment ratio of local staff in overseas projects, strengthen training and management for locally hired employees, enhance their job skills and professional competence, minimize the number of expatriate staff as much as possible, and reduce overseas security risks to the greatest extent.
Hire local employees in accordance with regulations.
While promoting localized operations, we should fully leverage local government or third-party resources to establish a local employee hiring review system, thereby preventing the introduction of unstable factors onto project sites that could lead to disputes—or even mass incidents—between Chinese and foreign employees. At the same time, we must sign labor contracts with locally hired employees in strict accordance with the law, clearly defining the rights and obligations of each party to avoid future labor-management disputes.
Article 3: Safety Training
Intensive training before going abroad
Implement pre-departure training for employees assigned overseas as a mandatory requirement. Through outsourcing, overseas training programs, and training provided by specialized institutions, conduct comprehensive and targeted training tailored to the specific job requirements of company officials in charge of overseas projects and institutions, those responsible for security operations abroad, dedicated security personnel, and ordinary overseas assignees. This will enhance their awareness and capabilities in safety prevention, strengthen their overall management skills, and ensure effective implementation of the “no training, no assignment” policy. Enterprises undertaking general contracting for overseas projects shall assume overall responsibility for the safety education and training of subcontractors participating in the project.
Daily training after going abroad
Enterprises should treat safety training for employees dispatched abroad as an ongoing, routine task that requires consistent and persistent attention. Based on the risks surrounding project sites and their own practical experience, they should develop a comprehensive training manual for overseas safety precautions, organize regular and timely learning sessions, and continuously encourage employees to enhance their awareness and capabilities in safety prevention. Overseas daily safety training should be incorporated into overseas management regulations and included in employee evaluations and assessments. Regardless of position or rank, all employees must strictly adhere to mandatory safety orientation upon entering the site. A record system should be established to document training content and attendance, ensuring full coverage of all personnel. Regular reviews of important precautions and safety risk incidents should be conducted to further strengthen safety awareness.
Development and drills of emergency plans
Based on the security risk assessment of the locations of overseas institutions, develop an emergency response plan for security incidents abroad that meets the criteria of being “practical, workable, and reliable.” Regularly organize employees to conduct drills based on the contents of the plan, and continuously refine and improve the plan in light of actual conditions.
Chapter Four: Risk Assessment
Project Proposal Evaluation
We will continue to conduct risk assessments and reviews for overseas project acquisitions and the establishment of overseas institutions, implementing a “one-vote veto” system for safety risks and ensuring that no project is approved without prior risk assessment. In particular, for institutions and projects established in high-risk countries and regions, we should engage professional security agencies in advance to conduct thorough safety risk assessments and seek input from relevant domestic authorities as well as from the relevant Chinese embassies and consulates abroad, thereby avoiding falling into dangerous situations due to rash project approvals.
Safety Cost Assessment
Before initiating a project, enterprises shall calculate the safety costs associated with the project, incorporate safety investments into the project budget, and include specific provisions on safety assurance in the project contract or formal written documents. For contracted construction projects and dispatched labor assignments, the contract must clearly stipulate that the client is obligated to take all necessary measures to protect the personal safety of the enterprise’s construction personnel and maintain normal construction operations.
Dynamic Risk Assessment
Enterprises’ overseas projects and institutions must enhance their risk awareness, closely monitor and actively analyze the security situation in the countries and regions where they operate, and strengthen their analytical judgment and risk identification capabilities. They should intensify their research on the political, economic, legal, and cultural aspects of the countries and regions where ongoing projects are located, and conduct dynamic assessments of potential risks.
Information Channel Development
Strengthen information gathering and early warning through multiple channels. Rely on overseas embassies and consulates, local governments, military authorities, Chinese and foreign partners, and media to carry out effective information collection. Additionally, collaborate with international professional security agencies or organizations to fully leverage external resources. Each overseas institution should implement a corresponding security reporting system based on the risk situation in its location, promptly reporting the safety status of projects and personnel to both domestic authorities and overseas embassies and consulates.
Chapter 5: Building a Secure Soft Environment
Adhere to lawful business practices.
Pay attention to safeguarding the country’s and the company’s image, prioritize the company’s long-term interests, engage legal counsel, thoroughly understand and comply with local laws and regulations, and reject short-sighted, illegal behaviors. Avoid situations where incomplete procedures, irregular business practices, or even violations of laws and regulations lead to an increase in overseas security risks.
Fulfill social responsibility
Correctly balance the relationship between corporate development and giving back to society, adhering to a development path that equally emphasizes both economic and social benefits, actively protecting the environment, promoting local employment, and enthusiastically participating in public welfare initiatives.
Promote honesty and trustworthiness.
Uphold business ethics, reject counterfeit and fake products, and firmly oppose fraud, deception, bribery, and extortion. Strengthen solidarity among Chinese-funded enterprises to avoid vicious competition and mutual undermining. When disputes arise with local communities or individuals, employees should be urged to remain calm and restrained, take measures to prevent escalation of conflicts, fully leverage legal means to safeguard the legitimate rights and interests of both the enterprise and its employees, and promptly contact the relevant overseas embassies and consulates.
Integrate into the local community
Understand and respect local customs, strengthen cross-cultural communication and exchange with the local community, pay close attention to publicity efforts, enhance the loyalty of foreign employees, build mutual trust, and ensure that the local community genuinely perceives the “benefits” brought by our company’s investment and operations. This will encourage them spontaneously and willingly to become our company’s “safety information reporters” and “protectors” in the local area.
Emphasize publicity and communication.
Strengthen communication and exchanges with relevant social organizations such as the host country’s government, trade unions, and local media. Publicize more extensively the contributions enterprises make to promoting local socio-economic development, and strive to gain understanding and support from all sectors of the local community. Pay close attention to managing public opinion risks, and promptly clarify and explain through the media any false or negative reports involving the enterprise.
Jointly Build a Harmonious World
Forge broad friendships, strengthen bonds of camaraderie, and foster amicable relations among people of different races and ethnicities. Strive to expand areas of common interest with the local community, build a community of shared interests, deepen mutual trust, pursue common development, achieve win-win outcomes, and broaden the space for harmonious enterprise growth—thus sharing peace and prosperity together.
Chapter Six: Security Hardware Investment
Standardize campsite construction
Develop standards for the construction of overseas institutional campsites, equip them with necessary security and protection facilities based on actual risk assessments, and hire local security personnel or armed police to enhance security protection capabilities and raise the overall level of security. At the same time, establish safe and reliable evacuation plans to effectively respond to various emergency situations.
Emergency Resource Assurance
Stockpile emergency supplies and funds, including first-aid medications, transportation vehicles needed for personnel transfer and evacuation, flashlights, maps, compasses, as well as food and drinking water sufficient for at least 15 days. Increase investment in communication equipment by setting up 24-hour on-duty telephone lines at all overseas offices and project campsites. Equip overseas offices and project campsites located in areas with poor communication conditions and harsh environments with maritime satellite phones to ensure smooth information flow.
Life insurance coverage
Timely purchase overseas safety insurance for employees on assignment abroad to alleviate their worries and enhance both the company’s and employees’ risk resilience.
Leveraging third-party resources
Fully leverage resources from security companies, insurance firms, intermediary agencies, international organizations, and other relevant entities. By participating in insurance programs, outsourcing services, or becoming members of SOS International Rescue Organization, entrust the management and assurance of overseas security risk prevention to professional and authoritative institutions, and receive round-the-clock, uninterrupted security assistance.
Chapter 7: Daily Management
Strengthen management in accordance with local conditions.
Carefully study and rationally assess the local investment environment and the level of socioeconomic development, demonstrating a degree of flexibility in enterprise management practices to ensure that relevant management measures are tailored to local conditions. Avoid letting minor issues overshadow major ones, and where feasible, strive to have local personnel manage local employees. For high-risk countries and regions, all overseas institutions should make full use of local resources by establishing dedicated public safety positions and hiring experienced local professionals with management expertise to serve as corporate public safety officers.
Strengthen communication with embassies and consulates as well as local relevant authorities.
Promptly report to and register with the overseas embassy or consulate located in the project or institution’s area, and accept the guidance and management of the embassy or consulate. Establish regular communication channels with the embassy or consulate, actively cooperate with the embassy or consulate’s “visiting” activities, and promptly address and eliminate any issues or potential hazards identified during inspections. At the same time, strengthen communication and coordination with local government agencies, military units, police departments, and other relevant authorities, and promptly report any problems that arise.
Ensure internal stability.
Ensuring internal stability is a critical component in controlling and preventing sudden security incidents. All overseas offices and project leaders within enterprises should focus on improving employees’ physical fitness, strengthening team cohesion, enhancing communication and interaction with ordinary staff, keeping channels for employee concerns open and unobstructed, promptly monitoring employees’ ideological trends, understanding their needs, helping them resolve practical problems and difficulties, and addressing issues and conflicts at the grassroots level—before they escalate into full-blown incidents.
Strengthen employee management
Develop a code of conduct for dispatched personnel to standardize their behavior, guide and encourage employees to project a positive and civilized image, comply with local laws and regulations, respect local customs and traditions, and foster harmonious relationships with locally hired staff. In case of conflicts or frictions, handle them calmly and resolve them rationally. Strictly enforce security regulations for high-risk countries and regions; employees must obtain approval from project leaders before going out, and must be escorted by professional security personnel or military/police officers. Private outings are strictly prohibited. Establish an emergency contact database for dispatched employees, including the names, relationships, and contact information of their family members in China.
Handle the issue appropriately.
When handling issues, it’s important to adopt the right approach and methods. Especially when conflicts arise with local employees or residents, make greater use of local resources and, whenever possible, rely on local security forces hired by the host government, partners, or enterprises to resolve the situation. Do everything possible to avoid direct confrontation between our personnel and local residents, which could escalate tensions, exacerbate conflicts, or even trigger ethnic clashes.
Strengthen supervision and inspection.
Establish an effectiveness audit mechanism for the overseas security risk prevention system, and conduct regular assessments of the effectiveness of security risk prevention efforts at overseas projects and institutions. Each overseas institution and project should also carry out regular self-checks to identify vulnerabilities and eliminate potential hazards. Any issues identified must be promptly rectified, and successful practices should be summarized and widely promoted.
Article 8: Emergency Response
Quick response
Enterprises shall establish and continuously improve emergency response mechanisms for sudden incidents at their overseas institutions. Frontline managers of overseas institutions must constantly enhance their safety awareness. When the security situation overseas becomes abnormal, they should promptly report the situation to the relevant overseas embassies and consulates. In the event of a sudden incident overseas, the emergency response mechanism must be activated immediately, and the incident should be reported to the relevant domestic authorities and the overseas embassies and consulates. The report shall include: details about the organization or project involved in the incident; the time, location, and on-site conditions of the incident; a brief account of how the incident unfolded and a preliminary assessment of its cause; the number of casualties—both confirmed and potentially missing—along with the names, hometowns, domestic contact organizations, and contact information of family members of the affected individuals; a preliminary estimate of direct economic losses; and the measures already taken.
Follow instructions.
When a sudden security incident occurs overseas, the relevant enterprises must carry out their work under the unified guidance and coordination of the competent domestic authorities and the Chinese embassies and consulates abroad. It is crucial to avoid situations where enterprises “disregard instructions” and act independently without coordination.
Organized and orderly
In the event of a sudden security incident overseas, enterprises must fully leverage the role of Party organizations at all levels within their projects as fighting fortresses and do a good job of organizing employees. For overseas projects and institutions that have not yet established Party organizations, immediate designation of responsible persons at all levels is required to ensure that employees follow the leadership and organization, thus preventing fragmentation and disunity. When necessary, the headquarters in China should promptly dispatch working groups to the front lines to strengthen frontline leadership and organization.
Self-rescue and mutual rescue
In the event of a sudden security incident abroad, enterprises should make full use of their local networks to help both the companies themselves and the embassies/consulates gather information, and assist the enterprises in taking self-protection and self-rescue measures. In situations where the security situation in the host country or region deteriorates rapidly, enterprises, while continuing to focus on self-protection and self-rescue, should also actively engage in mutual support and assistance with nearby Chinese-funded enterprises, working together to address security threats.
Family reassurance
In the event of a sudden security incident abroad, enterprises must promptly reassure and communicate with the domestic families of their employees overseas, ensuring that family members remain emotionally stable and refrain from taking any extreme actions that could interfere with the handling of the incident.
Media response
In the event of a sudden security incident occurring overseas, enterprises should, under the guidance of relevant authorities and overseas embassies and consulates, carry out external communications in a well-coordinated manner and proactively guide public opinion. It is essential to adopt a unified external messaging strategy to avoid conflicting statements and unauthorized disclosure of incident-handling details, which could trigger media hype and disrupt the handling of the incident. If necessary, enterprises may engage local professional public relations firms to assist in managing public opinion.
Source: China Consular Service Network