International exhibits, conventions, and seminars are rich collection targeting opportunities for foreign collectors. These functions directly link programs and technologies with knowledgeable personnel. Consequently, US defense industry reporting reflects collection activity at these events is usually expected. Good risk management processes which accurately consider what information is being exposed, where, when and to whom is essential for implementing threat appropriate, cost effective, and rational security countermeasures to balance marketing requirements. Joint ventures, joint research, co-production and various exchange agreements potentially offer significant collection opportunities for foreign interests.
Access can be intentional or unintentional, and for both, legal or illegal.
More frequently, as the world market for defense products and services shrinks, the dangle of a joint venture is sufficient to entice US contractors to provide unusually large amounts of technical data as part of the bidding process, only to have their information taken when the contract is canceled. US defense industry reporting of SCM concerns continues to indicate that assimilation of foreign personnel into the work environment, without security sustainment training programs, usually results in a relaxation of security awareness, often resulting in a security compromise. Foreign acquisition of technology and companies in the US defense industry continues to generate significant SCM concerns regarding foreign access to US markets or sensitive and proprietary information. Once a foreign entity gains ownership, control, or influence over a US company with classified contracts, that ownership, control, or influence must be mitigated through an insulating instrument approved by the Defense Department. If such an approved insulating legal instrument is not implemented, the US company and the foreign investor face the possibility of contract cancellations and loss of future classified contracts.