June 22nd, 2009 by China Business Success Stories
By Alex Raymond
Get IT involved early
Information Technology will play a critical role in a successful C-SOX implementation, so it is important that the IT organization understands how they will support this project. The Basic Standard for Enterprise Internal Control specifically mandates the use of IT to reduce risk and increase transparency in organizations, and successful Chinese companies will make the best use of technology resources. Embedded controls within information systems will increase compliance efficiency and improve the control structures which have been defined by the business.
The IT organization will have two roles to play in a C-SOX implementation. The first is to define their own internal controls and understand what tools are needed to manage any risks. The second role is to provide support to the rest of the organization and make sure the company’s IT infrastructure is up-to-date and meets the requirements of the business. Read the rest of “Getting a Head Start on Your C-SOX Compliance Project in China (Part 3)” or post a comment
June 17th, 2009 by China Business Success Stories
By Alex Raymond
Getting started: executive sponsorship
The most important criterion for success of the C-SOX compliance project is to ensure the attention and support of the entire organization. Although responsibility for risk management and compliance ultimately sits with the CEO and Board of Directors, forward-thinking companies will push responsibility to various parts of the organization. C-SOX projects require participation from many levels of an organization, and for compliance projects to succeed, companies in China must make their staff an active participant on the integrated project team. People need to prepare materials for compliance consultants or auditors, and companies must commit staff and resources to make efficient use of outside consultants.
Read the rest of “Getting a Head Start on Your C-SOX Compliance Project in China (Part 2)” or post a comment
June 10th, 2009 by China Business Success Stories
By Frank Gallo
Chinese employees are often accused of not being willing to take risks and therefore fail to be innovative. And yet, many firms in China are trying to do new things and therefore require innovation. In my view, risk-taking behaviour in China is quite similar to other countries. I believe the reason that China has the reputation of not taking risks is because of a few cultural patterns. One is the fact that Chinese employees are generally not very quick to speak up. Westerners often see this behaviour as a sign of fear. I think however, it is more about caution and a very strong desire to get something “just right.” Getting something right is more important to most Chinese than being first.
The following two sayings are often used to show an apparent difference between Westerners and Chinese. “The early bird gets the worm” is a Western proverb that is taught to Western children from a very young age. The idea is that you are better off in life if you try something early. On the other hand, the Chinese proverb “Qiang da chu tou niao” (“The first bird out gets shot.”) implies a need to be cautious. But as noted, this does not mean that being early is unimportant. Read the rest of “Risk-Taking Among Chinese Employees” or post a comment
June 9th, 2009 by China Business Success Stories
By Alex Raymond
China’s Basic Standard for Enterprise Internal Control (“C-SOX”) comes into effect soon and many companies are therefore starting to implement this regulation. While the prospect of adopting new corporate governance and risk management standard may seem daunting, there are some simple steps that companies can take to get a head start on the project. Companies that start implementing C-SOX early will gain competitive advantage and save significant money and resources over the long run. The keys to a successful implementation are to enlist the support of the entire organization, and to set out a reasonable strategy and timeframe for the project.
This series of articles will show how you can get started with the C-SOX now and get the most out of it. First, we will start with an overview of the new regulation and how it will impact companies in China. Part 2 will discuss how to get started with the project and Part 3 will identify more internal and external partners who can help make your C-SOX project a successful one. Read the rest of “Getting a Head Start on Your C-SOX Compliance Project in China (Part 1)” or post a comment
May 4th, 2009 by China Business Success Stories
Ratcheting Up the Criticism of Performance Ratchets in China
In an interesting discussion a couple of weeks ago in Shenzhen with a very smart and capable lawyer (Ke Luo of Fangda Partners), I learned about a small, but growing backlash against the Top Tier private equity firms working China. Evidently there have been some articles in the Chinese press voicing criticisms of…
Read the rest of “Private Equity Firms in China in the Firing Line” or post a comment >>