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OSAC's Top 5 Security Trends in 2006 for the U.S. Private Sector in Asia

OSAC Says Intellectual Property Theft, Natural Disasters, Terrorism Among Growing Threats

Theft of intellectual property, natural disasters, and terrorism were among the top security challenges of 2006 confronting U.S. businesses, nongovernmental organizations and academic institutions operating in Asia, according to a year-end analysis by the Overseas Security Advisory Council (OSAC).

"2006 was a defining year for the American private sector abroad," said Doug Allison, a Special Agent with the Department of State's Bureau of Diplomatic Security and Executive Director of OSAC. "The threats from traditional sources - such as crime, terrorism and political instability, as well as from non-traditional, non-routine sources - such as acts of nature and potential global pandemics, have demonstrated that firms must incorporate security and risk management into their core business operations if they are to overcome these threats."

"Corporations that develop an internal culture of resiliency are better prepared than their international competitors to deal with predictable and catastrophic challenges," he said. "Such firms are better able to exploit opportunities in riskier environments and in the aftermath of a major event."

U.S. businesses face significant threats to their intellectual property rights in Asia, particularly in India and China, the OSAC review found, noting that, "piracy and other violations of intellectual property rights have quickly become one of Asia's key regional issues."

Typhoons, earthquakes and other natural disasters also created risks for the facilities and employees of U.S. private sector groups, OSAC said, including "many of Asia's prosperous nations, to include Japan, the Philippines and India."

And the threat of terrorism in Asia has caused private sector entities to spend increased amounts of resources to protect their facilities and people in the region, OSAC found.

OSAC's regional specialists analyze information and develop informational products on security abroad that are then delivered to its private-sector members, explained Allison.

"By working with our OSAC partners, sharing our analysis, and pushing out our information, we aim to help the U.S. private sector better prepare for, respond to, and recover from the security challenges that may arise in 2007," said Allison.

The following is OSAC's list of the past year's top overseas security challenges to the American private sector.

Top 5 Private Sector Security Issues for Asia

Violation of Intellectual Property Rights
Piracy and other violations of intellectual property rights have quickly become one of Asia's key regional issues. With an influx of U.S. and multinational companies investing in overseas operations via outsourcing and other business practices, this issue is one that will not fade soon. India and China, Asia's two largest players on the international business stage, are countries where the U.S. private sector faced the most intense threat of IPR-related commercial losses.

Natural Disasters
Typhoons, flooding, earthquakes and tsunamis don't discriminate on location or victim, and affect many of Asia's prosperous nations to include Japan, the Philippines and India. Whether a private sector organization has facilities in the country or employees on vacation there, an area prone to natural disaster raises the stakes for all involved.

Transnational Terrorism
The effects of transnational terrorism were apparent across Asia, causing private sector interests to operate at the highest levels of security, using resources that could be used in other ways and affecting investment.

Political Instability
This past year, the elected governments in Thailand and Fiji were ousted by extralegal means, leading the U.S. private sector to reconsider the risk on their investments.

Indigenous Insurgencies
Indigenous insurgencies create an atmosphere of instability in some parts of Asia. Indigenous groups such as Southern Thailand's ethnic Malay-Muslim separatist movement and India's United Liberation Front of Assam continued to cause concern for U.S. private sector interests.