The world is flat, or so we hear. For many risk managers, the globe is an expanded stage on which to tame a wide spectrum of perils and challenges. One of these is litigation and the need to manage it internationally. Liability lawsuits cut across global boundaries. Regardless of whether or not the risk manager's company has insurance, managing litigation on global footing can be a daunting task. 

Risk managers who establish litigation management systems to address lawsuits in other countries face multiple challenges, including:

• Cost – Rates that firms would never consider paying in the U.S. are standard in other countries.  Since clients often must make counsel retention decisions fast and the risk manager's buying leverage is modest, there may be less chance to negotiate favorable hourly rates.
• Investigation – Witnesses and documents are not readily available. Locating witnesses and key documents may be more time-intensive.
• Communication – Bridging cultural barriers within the company and with outside claim vendors and law firms can be tough. Language barriers are just one complicating factor.  Others include work habits and procedures of courts in other countries.
• Culture and training – Another hurdle is identifying and training non-U.S. resources and vendors to assist in claim and lawsuit defense. 

Certain bedrock principles apply regardless of whether you manage claims and litigation within the United States or in other countries. Those overseeing litigation must understand the company's business. The risk manager must see that—when it comes to claims-handling and litigation defense—the company has the right people in the right roles. That includes establishing and nurturing positive relationships with key constituents. The latter include counterparts within the organization but also encompass key external constituencies such as law firms and claim administrators.

Because of the cost of managing litigation in far-flung locales, the risk manager must develop and institute core case-management and cost-control processes. Further, risk managers must articulate to key vendors the company's risk, claims, and litigation management philosophy.