• A global industrial cable manufacturer aimed to integrate risk management practices across newly acquired Chinese manufacturing sites.
• Align risk management processes at newly acquired Chinese facilities with global standards, identify gaps, and enhance operational resilience.
• Conduct comprehensive audits, identify gaps, assess risks, propose corrective actions, evaluate human resources, and foster a safety culture.
• Aligned Chinese operations with global standards, improved efficiency, enhanced safety, ensured regulatory compliance, and established a resilient operational framework.

In the dynamic landscape of global industrial manufacturing, companies often face the challenge of integrating newly acquired subsidiaries seamlessly into their existing operations. A recent case involved a leading industrial cable manufacturer expanding its footprint into China. The company sought to enhance the risk management practices at its newly acquired Chinese manufacturing sites to align with its global standards.

The primary objective of the project was to bridge the gap between the risk management processes of the acquired Chinese operations and the established standards of the parent company. The newly acquired entity presented a diverse landscape with varying levels of risk management maturity across its multiple manufacturing locations. Inconsistencies in safety standards, operational risk controls, and employee awareness posed significant challenges to achieving uniformity with the parent company’s global operations.

Our consulting firm adopted a systematic approach to address the client’s requirements. The methodology encompassed a comprehensive series of steps designed to evaluate existing risk management frameworks, identify discrepancies, assess risks, propose corrective actions, and foster a culture of safety and risk awareness.

The solution began with a thorough Risk Management Audit, examining existing frameworks, safety protocols, and operational resilience strategies at each site. This was followed by a meticulous Gap Analysis, comparing audit findings with the parent company’s risk management policies to pinpoint areas needing improvement. Subsequently, a detailed Risk Assessment was conducted, focusing on specific risks related to equipment, operations, and health and safety standards. Based on these assessments, a structured Corrective Action Plan was developed, incorporating technological upgrades, process re-engineering, and compliance training programs. Additionally, the consulting team evaluated the roles and responsibilities of personnel involved in risk management, recommending enhancements to foster a culture of safety and risk awareness.

The implementation of the solution yielded tangible benefits for the client. Alignment with global standards led to enhanced operational efficiency and reduced downtime, contributing to improved productivity and cost-effectiveness. Furthermore, the emphasis on health and safety resulted in fewer workplace accidents, creating a safer working environment for employees. The adherence to international standards and regulatory compliance not only mitigated potential risks but also enhanced the company’s reputation and stakeholder trust. Overall, the establishment of a robust and resilient operational framework equipped the client to effectively manage emerging risks, ensuring long-term sustainability and competitiveness.

In conclusion, the successful integration of risk management practices at the newly acquired Chinese manufacturing sites exemplifies the effectiveness of strategic consultancy in addressing complex challenges within multinational settings. By aligning with global standards, fostering a culture of safety, and implementing tailored solutions, the client has positioned itself for continued success in navigating operational risks and achieving sustainable growth.

Here are five key takeaways that are important for organisations to consider:

1.Thorough Due Diligence: Conducting comprehensive due diligence before and during acquisitions is crucial for identifying existing risks and areas requiring immediate attention, ensuring a smoother integration process.

2. Cultural Integration: Successful alignment of risk management practices necessitates understanding and integrating into the local culture rather than imposing global standards, fostering acceptance and compliance among local employees.

3. Employee Engagement: Actively involving local employees in the audit and alignment process encourages their ownership of updated practices, leading to greater acceptance and adherence to safety standards.

4. Continuous Training: Regular training and development programs are essential for maintaining safety standards and risk awareness across all levels of the organization, ensuring sustained compliance and effectiveness.

5. Strategic Technology Investment: Strategic investments in technology can significantly enhance the effectiveness of risk management systems and safety protocols, contributing to overall operational resilience and business continuity.