Mitigating Risks Of Employee Misconduct In Satellite Offices: Practical Tips For Employers

In the landscape of international business, establishing regional offices in locations such as Hong Kong or mainland China is a strategic move for multinational corporations looking to establish a presence in Asia.

It is not uncommon for a sole employee to be assigned to take up a managerial role in a satellite office. Local staff are often appointed as regional general managers or directors. While this can bring invaluable local insight and expertise, the physical distance from head office often means that unless robust policies are put in place and adhered to, instances of misconduct, fraud and the like can occur and go on undetected for significant periods of time. Employee fraud or misconduct can take many different forms and can be uncovered in many different ways – usually following a tip-off , management change, and internal or external audits. In any event it is reported that more than half of employee fraud cases occur due to lack of internal controls. This