The Chinese work culture is more informal and network-driven. Chinese are highly trained in evaluating the context of a situation, sometimes to even give it precedence over what was communicated. Therefore written procedures often need much stronger focus on responsibilities, details of collaboration and sanctions compared to western work cultures. Lack of supervision, checks and records will lead to corner cutting, and in the worst case to fraud and embezzlement. IP assets, know-how and data are a particular area of risk that requires attention and management.