Risk Management Prevention

Professional Services for Business in China - A Louie Associates

"Risk comes from not knowing what you’re doing."

Warren Buffett

MITIGATE THOSE RISKS by learning as much as possible about the people you deal with, the business environment and the way they do business, or consult someone who knows.

There are always risks in doing business whether in China or elsewhere. You mitigate those risks by learning as much as you can about the market, its operating environment, the competition, and the rules of the game.

The mitigation of risks is crucial to the development and success of any business. There are excellent opportunities for investors in the China market, but there are also significant risks. We perform due diligence for clients, which is always prudent and advisable for investors new to the market. Due diligence is about finding out everything you can about the market, the way business is done, the cost of doing business, etc.

There are many different kinds of risks, some of which are hidden or not so apparent, although their potential impact could be just as damaging to business interests. We address a whole range of risks, any of which could significantly affect or even cripple clients’ business operations. We work with clients to identify the risks they face, and create comprehensive and integrated solutions to prevent, as well as to deal effectually with such risks, for the long-term protection of their business interests in China.

We help clients minimize their exposure to risks by devising an actionable business strategy that is aligned with their business goals, and the implementation of monitoring procedures. This is a customized strategy to coordinate and deploy effectively resources to mitigate, monitor and assess the probability of risks, and to control and mitigate the impact of such risks on their China operations. This viable and practical approach to safeguard and protect clients’ business and assets, reputation and brand is achieved through careful advance planning


Throughout the process, we collaborate with the local China risk management team and international headquarters to create a tailored China Composite Risk Index (CCRI) to better understand your company and best identify potential threats to your business. Using the results of the index we then create an effective risk management plan. 

CCRI Equation:

  1. Identify, characterize, and assess threats. 

  2. Assess vulnerabilities of prime assets to specific threats. 

  3. Determine consequences of specific threats on specific assets. 

  4. Distinguish ways to mitigate such risks.
  5. Prioritize risk based on reduction measures jointly agreed upon with management. 



Sino-American Joint Venture Risk Management Analysis
We created an operational JV risk management analysis for a Sino-American JV operation. A. Louie Associates identified weaknesses in the supply chain that included its interior supply of raw materials and transportation risks. Through these findings and an updated action plan, we created a huge cost saving for the client.

Expatriate Evacuation Plans
We worked with an American MNC to devise evacuation plans for expatriate staff during times of crisis.

We Understand the Wider Implications of Business in China
Furthermore, A. Louie has created plans for media control and government relations.