International Risk
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International Risk
Who says crime doesn't pay? For Steve Vickers, corporate fraud, embezzlement, kidnapping, copyright theft and corporate contests are all contributing to his rapidly expanding global business empire.
Mr Vickers is a "crimebuster" -- a lifeline for many corporations who find themselves unexpectedly drowning in a sewer of crime. And in a world of uncertainties, he has no shortage of clients.
"There's no outbreak of honesty in Asia this year," the former triad-buster quips, adding sardonically, "I like to rely on human nature to keep my business expanding."
Steve Vickers is no stranger to the darker side of the law, having become a household name during his 18 years with the Royal Hong Kong Police Force. During his service, he commanded the Criminal Intelligence Bureau, which saw him lock horns with some of Hong Kong's most nefarious triads, including the Sun Yee On and 14K gangs.
He has also handled 28 kidnapping incidents, both domestically and internationally, including the kidnapping and disappearance of ChinaChem tycoon Teddy Wang. The epitome of discretion, he refuses to talk about any of these past cases, even today.
After retiring from the police force, he continued to fight crime through various jobs, ranging from heading a leading U.S. listed company in the risk mitigation field, to chairing and investigating brand protection issues in China and other emerging markets.
In 2000, he established the regional investigative and risk management arm for a big-four global accounting firm. Subsequently in October 2002 he led a management buy out of the company and changed its name to International Risk Ltd.
"We had only 10 weeks to re-brand, create an international global IT system, develop collateral material and Websites, set up a global VPN, find regional offices, negotiate leases, et cetera, and we had to do all this while remaining operational," he said. "That was a character-building chapter of our history to say the least."
Steering companies away from trouble
A large part of IR's business revolves around fraud investigation. Through offices in Hong Kong, Tokyo, New York, Beijing and Singapore, his staff -- made up of former law enforcement officers, forensic accountants, computer crime specialists, researchers and a web of 200 investigative operatives -- help multinationals conduct due diligence.
"In the fraud side, this not a happy business. It is like putting the toothpaste back into the tube," he says.
The company's fraud investigations often identify internal staff as the perpetrator. IR then collects and packages the evidence for clients to report the crime to the police.
"The harsh reality of life is that you have to move very fast and package the case properly, otherwise evidence will disappear or funds evaporate very quickly," he says.
With 95% of business records stored in electronic format, IR's in-house forensic laboratory plays a crucial role in bringing about successful prosecution by recovering deleted or destroyed files.
IPO Bombs
With the up tick in the economy, there has been a huge inflow of investment into China, and Mr Vickers says IR has grown rapidly on the back of the increased investment flows into China, especially as part of M&A deals.
But a worrying trend is the lack of due diligence that companies are conducting on IPOs. Mr Vickers believes many underwriters and professionals will be left running for cover when IPO bombs, as he likes to call them, start going off in people's faces or when the economy stalls.
"We are setting ourselves up for a fall. The hard reality is the level of due diligence conducted into IPOs is less onerous and effective than that it is in Singapore. While Hong Kong has the regulations, the actual manner of due diligence into IPOs leaves a lot to be desired. People are doing technical, rather than actual due diligence. They are just ticking the boxes," he laments.
"This will, when the current economic boom cools down, leave a very nasty taste in the mouth. Businesses never seem to learn from history," he added.
A staunch Hong Kong supporter, Mr Vickers warns the resulting fallout could undermine Hong Kong's position as a financial hub for Asia, and rubbish our claim as Asia's World City.
Managing risk
In addition to IPOs and risk mitigation work, IR also provides political risk analysis, and investigative work for multinationals and even governments. It recently conducted with the Taiwanese police one of the biggest counterfeiting raids ever seen in Taipei on behalf of a Japanese client.
"We did legal work and conducted in-depth investigated for six months to build a solid case and deliver a crushing blow to the counterfeiters," Mr Vickers said. "They had an operation as big as an aircraft hanger."
IR was also hired by international clients following the shooting of Taiwanese President Chen Shui-bian on the eve of presidential elections on the island on March 19, 2004. His preliminary investigation into the shooting led to 20 grave discrepancies and unanswered questions, and prompted an independent judicial inquiry into the incident.
When he is not fighting crime, Mr Vickers focuses his energies on helping the Hong Kong Trade Development Council promote Hong Kong through TV shows, interviews and talks. His mantra is Hong Kong as the risk management center for China, which is good for Hong Kong lawyers and accountants, and reinforces Hong Kong's position as a world-class arbitration center.
As such, he is bullish on the future of Hong Kong. Despite claims from some quarters that China no longer needs Hong Kong, Mr Vickers believes the Mainland needs the SAR more than ever before.
"The China story is not going away, and setting aside the China story, the Asia story is not going away either. We are well positioned with our framework to mop up in the Asian environment, where spotty law and order continue to exist, provided we are bullish enough," he said.
Despite dealing with crime on a daily basis, Mr Vickers radiates a cheerful and optimistic aura. When asked how he manages to remain so upbeat, he says simply: "Don't take yourself too seriously. Life is what it is and I think keeping your feet rooted in reality and maintaining a sense of humour is the way forward."
"I love Hong Kong, and Hong Kong is the reason we keep our headquarters here, and why most of our work, about 70%, is executed out of Hong Kong," the fluent Cantonese speaker added. "As such, I think our future very bright indeed."
Company: International Risk Limited
Established: 2002
Year joined HKGCC: 2003
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