SINGAPORE — Problems can arise when there is a delay in bringing risk managers into discussions about international acquisitions, said a speaker Tuesday at the Pan-Asia Risk & Insurance Management Association's Asian Risk Management Conference.

The risk manager must be involved in the acquisition early enough to get information so he knows what to do and can effectively advise management, said David Ralph, senior vice president for risk management with Hong Kong-based PCCW Ltd., a conglomerate whose interests include telecommunications and media.

Mr. Ralph moderated the session on practical international insurance tips for navigating the hazards in moving from local to global programs at PARIMA's inaugural conference in Singapore. Elevating the role and the position of risk managers “is absolutely critical to building global programs and allowing companies to expand,” he said.

When expanding beyond a local area you “must evaluate your risk appetite,” said Praveen Sharma, London-based global insurance regulatory and tax consulting practice leader at Marsh Ltd. “What is your group's risk tolerance? How much risk can they accept” given their balance sheets and assets, he said.

“You also need to align yourself with credible advisers that can give you relevant advice on time and in the right manner,” because you must present yourself to the board to explain the insurance you are buying and why, Mr. Sharma said.

Another factor to consider is the country in which claims are to be paid, Mr. Sharma said. “Put that question right up front” and consult with the chief financial officer and tax manager, he said, adding that company finance and tax officials “don't like surprises,” and the choice of country can impact taxes.

“The risk manager needs to evaluate all of these things before you go tearing off to the insurer or the broker for insurance,” Mr. Sharma said.

Prashant Grover, Singapore-based head of operations for Asia-Pacific with Allianz Global Corporate & Specialty S.E., said another factor to consider in an international program is whether or not the company wants the local coverages to be coordinated with a master program.

“Those two options need to be considered carefully when looking at coverage,” he said. If you do not want the local coverages to be coordinated with the master program, you must look at coverage on a case-by-case basis, “which may not be consistent on an overall basis but could serve local needs,” he said.

Rajeev Kadam, president and global head of internal compliance at Singapore-based agribusiness firm Olam International Ltd., said a captive “could work very well in terms of looking at larger risks of that nature.”