Assessing and Managing Risks on International Projects

It takes a village…

Who we are

David Brady, Director, Office of Export and Secure Research Compliance, Virginia Polytechnic Institute and State University

Janet Simons, Director, Research Policy,University of Maryland Baltimore

Goals for this session

• Risks to consider for programs with an international component

• Building red flags and triggers into your processes

• Assessing and mitigating risks

Where do I start?

How do I assess the risk if I find a red flag?

Who can help?

…TO RAISE AN INTERNATIONAL COLLABORATION

Risk Identification and Analysis

• Questionnaire tool• Information/Advice – what to do now (and a

training opportunity)• More questions – In this form, or one-on-one? – Expert evaluation of the risk

• Contact information – experts who can help• Follow-up – future actions

Who will use the questionnaires?

• PI, to self-identify problems • Department administrators, to self-identify

problems and to support PIs• Central sponsored programs administrators,

to review proposals and awards

Limitation of the Questionnaires

Yes-no questions only go so farWhen a questions triggers a red flag…have a conversation

University of Maryland Baltimore “profile”

• Fundamental Research Exclusion – no classified research

• Professional schools – medical, dental, law, nursing, pharmacy, social work

• International subrecipients• International sites – expatriates, local hires

Virginia Tech “profile”

• Defense contractor with national security restricted applied research

• Nationally ranked professional schools – Engineering, Agriculture, Vet School

• Institutes- Bioinformatics, Transportation, Infectious diseases

• International sponsors and subrecipients• International sites – collaborative engineering

research

Risk Assessment at the Proposal Phase

When should international proposals be screened, and by whom?

Routine review by Sponsored Programs Risk-based review by Export Compliance, Global Health Initiatives

Always reviewed by Sponsored Programs, Legal Counsel, and Export Office

Risk of defense services, sanctions violations, embargoed entities

Proposal questionnaire format

Risk Assessment at the Proposal Phase

• PIs/Departments are responsible for proposal content, budget development– Questionnaires are intended to provide guidance– Questionnaires are intended to trigger conversations with

key experts/authorities

• In practice at UM, special review of proposals is risk-based– Large/complex international component– Likelihood of sanction/export control issues – More robust review occurs at time of award

Risk Assessment at the Proposal Phase

• Budget items– Travel – Fly America Act – Foreign per diem rates– Visas for travelers/expatriates– Shipping/customs– Local transportation/driver– Training– Communication– Wire transfer fees– Audits– Security– Attorneys and consultants– Leased space– Insurance– Expatriate allowances, relocation– Local hires

Questionnaire as teaching tool

Risk Assessment at the Proposal Phase

• Financial transactions– Sponsor payment

not in US dollars– International subrecipients– International bank account

Risk Assessment at the Proposal Phase

• Local presence – project personnel in country– Hiring local staff– University personnel• International travel• Expatriate concerns

– Leasing space– Student program?

Risk Assessment at the Proposal Phase• Export compliance– No restrictions on publication or dissemination– Physical shipments outside US– Sanctioned country– Red flags for potential export issues – certain PIs

and departments; at UM – proposal title mentions medical countermeasures, biodefense, controlled pathogen/toxin, etc

Risk Assessment at the Proposal Phase

•Other compliance issues– Human subjects research (subrecipient or

institution personnel in country)– Subrecipient performing animal research– Institution personnel providing clinical care– Technology transfer concerns

Risk Assessment at the Proposal Phase

Red flags/triggers: Resolve now or later?

Risk Assessment at the Award Setup Phase

• Laws of general applicability:– Export and sanctions regulations– Anti-boycott regulations– Foreign Corrupt Practices regulations

• Risk to reputation• Civil and criminal penalties

Risk Assessment at the Award Setup Phase

• Special contract clauses:– Immunity and consent to jurisdiction– Choice of laws– Dispute settlement– Termination– Intellectual property

• Risk to reputation• Financial risk

Risk Assessment at the Award Setup Phase

• Budget and structuring payments:– Cost sharing– Visa costs– Shipping and communication– Translation services– Foreign travel (e.g., insurance)– Audit– Administrative oversight/fee (as a directcost to the sponsored project)– Subrecipients & vendors– Closeout payments

• Financial risk

Risk Assessment at the Award Setup Phase

• Budget and structuring payments:– Payment in currency other than US dollars– Exchange rate fluctuations– Foreign bank accounts– Can the currency be exported?– Payments by wire transfer– Cash disbursements

• Financial risk

Risk Assessment at the Award Setup Phase

• Local Presence:– Registration– Partnerships with government organizations/NGOs– Site security– Local employees and expatriot allowances & benefits– Customs duties & local taxes– Emergency planning

• Financial risk• Risk to reputation• Health and safety risk

Award Setup questionnaire format

Questionnaire Teaching Tool

Award Setup Case Study: Payments to Elbonia

It takes a village…

• Ask questions• Dig deeper• Engage the village

Questions?