Repatriation		Varying ways an organization can create value, looking beyond traditional profit measures of revenue and expenses; includes such areas as philanthropy, volunteerism, corporate-sponsored community programs, social change, sustainability, corporate governance, employee rights, and workplace safety.
Local responsiveness (LR)		Organizations that own or control production or service facilities in one or more countries other than the home country.
Assignees		Situation in which an agent (for example, an employee) makes decisions for a principal (for example, an employer) potentially on the basis of personal incentives that may not be aligned with the principal’s incentives.
Redeployment		Set of behavioral guidelines that an organization expects all of its directors, managers, and employees to follow to ensure appropriate moral and ethical business standards.
Process alignment		Process by which an organization moves an employee out of an international assignment; can involve moving back to the home country, moving to a different global location, or moving to a new location or position in the current host country.
Onshoring		Practice of purchasing and using resources wisely by balancing economic, social, and environmental concerns, with the goal of securing the interests of present and future generations.
Identity alignment		Expected monetary loss for an asset due to a risk over a one-year period; calculated by multiplying single loss expectancy by annualized rate of occurrence.
Offshoring		Protocol that an organization implements when an identified risk event occurs.
Globalization		State of being in accordance with all national, federal, regional, and/or local laws, regulations, and/or other government authority requirements applicable to the places in which an organization operates.
Global integration (GI)		Employees who work outside their home countries.
Multinational enterprises (MNEs)		Practice of purchasing and using resources wisely by balancing economic, social, and environmental concerns, with the goal of securing the interests of present and future generations.
Outsourcing		Action taken to manage a risk.
Near-shoring		System of rules and processes set up by an organization to ensure its compliance with local and international laws, accounting rules, ethical norms, internal codes of conduct, and other standards.
Sustainability		Extent to which underlying operations such as IT, finance, or HR integrate across locations.
Corporate social responsibility (CSR)		Reporting of an organization’s violations of policies and processes by employees.
Compliance		Status of growing interconnectedness and interdependency among countries, people, markets, and organizations worldwide.
Triple bottom line		A characterization of the amount of uncertainty (acceptable risk) an organization is willing to pursue or to accept to attain its risk management goals, defined in a range above and below a target.
Sustainability		Process by which employees returning from international assignments reintegrate into their home country’s culture, conditions, and employment.
Governance		System for identifying, evaluating, and controlling actual and potential risks to an organization.
Ethics		Method by which an organization relocates its processes or production to an international location through subsidiaries or third-party affiliates.
Residual risk		Practice of contracting a part of business processes or production to an external company in a country that is relatively close (for example, within the same own region).
Risk management		Economic, social, and environmental impact metrics used to determine an organization’s success.
Moral hazard		Organization’s desired gain or acceptable loss in value.
Principal-agent problem		Uncertainty that has an effect on an objective, where outcomes may include opportunities, losses, and threats.
Conflict of interest		Globalization strategy that emphasizes consistency of approach, standardization of processes, and a common corporate culture across global operations.
Risk control		Metrics that provide an early signal of increasing risk exposures for an enterprise.
Hazard		Situation in which one party engages in risky behavior knowing that it is protected against the risk because another party will incur any resulting loss.
Single loss expectancy (SLE)		Relocation of business processes or production to a lower-cost location inside the same country as the business.
Annualized loss expectancy (ALE)		Principle that organizations should take all steps that are reasonably possible to ensure the health, safety, and well-being of employees and protect them from foreseeable injury.
Risk position		Process by which an organization contracts with third-party vendors to provide selected services/activities instead of hiring new employees.
Risk tolerance		Expected monetary loss every time a risk occurs; calculated by multiplying asset value by exposure factor.
Whistleblowing		Tool used to gather individual assessments of various characteristics of risk (for example, frequency of occurrence; degree of impact, loss, or gain for the organization; degree of efficacy of current controls).
Key risk indicators (KRIs)		Globalization strategy that emphasizes adapting to the needs of local markets and allows subsidiaries to develop unique products, structures, and systems.
Risk scorecard		Situation in which a person or organization may benefit from undue influence due to involvement in outside activities, relationships, or investments that conflict with or have an impact on the employment relationship or its outcomes.
Duty of care		Potential for harm, often associated with a condition or activity that, if left uncontrolled, can result in injury or illness.
Risk		Amount of uncertainty that remains after all risk management efforts have been exhausted.
Contingency plan		Extent to which diversity is embraced in management of people, products/services, and branding.