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Control Risks Group

Control Risks Group

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Control Risks Group

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  1. Control Risks Group Lessons learned…Lessons NOT learned? Casualty Actuarial Society May 21, 2002

  2. Our Mission Control Risks Group enables its Clients to succeed in complex or hostile business environments

  3. Amsterdam Moscow Edinburgh London Berlin Antigua New York Los Angeles Jamaica Tokyo Washington Mexico City Manila Bogota Singapore Jakarta Sao Paulo Sydney Melbourne Control Risks Group - An International Business Risk Consultancy

  4. WHY is US business at risk? Still…

  5. Why business? Aren’t embassies the prime targets? • YES -- and also any official interest, particularly military and symbolic bldg. • BUT -- strong security and counter-terrorism may deflect attention to business, travellers and dependants.

  6. Continued A hatred of America: • Invasion of Iraq in 90/91 Gulf War. • US presence in Saudi Arabia - the holy land of Islam • US support of Israel and failure to secure a peace in the Palestinian conflict

  7. Why has the risk increasedto US business? • US retaliation, collateral damage • Significant deterioration in the Israel-Palestine situation • Arab demographics • Attacks on other countries; Iraq, Syria?

  8. Clients who were safe on 9/11 • Had crisis management plans and had practiced them • Had systems for tracking employees at home and abroad • Didn’t panic • Had back up data centers

  9. Lessons not learned • Assess real continuing risks • Forget the extra lobby guards …look for the silent dangers – cyber attacks • Think about Money laundering as something that could happen to you • Airport security is a joke • Short attention span

  10. So what should companies do now?Fight complacency! • Prepare • Educate • Respond

  11. Crisis Management & Travel Safety Systems • Insurance covering as a minimum - medical, repatriation & Kidnap & Ransom. • Travel safety system including: • Risk rating & information gathering/dissemination system. • Training & awareness program to ensure that staff are aware of risks & how they should behave in given situations. • A 24 hr help/advice line to assist staff in the event of problems & monitor staff itineraries • Travel procedures/controls - sign-off higher risk areas

  12. Continued • Crisis management systems (including): • Plans & procedures - Plans including: • Emergency evacuation. • Kidnap, ransom & extortion. • Executive protection. • Security/physical protection. • Etc… • Organization to activate crisis management plans & act as a communications 'hub' for management.

  13. Continued • Selection & Training a Crisis Management Team (CMT) & Incident Management Teams (IMT). • Periodic exercise & training to update existing staff & induct new team members. • In depth training for company coordinators for these activities. • Management plan for all of the above including: board level ‘champion, periodic review & resource allocation.

  14. Evacuation • “ we have evacuated all expatriates from Yemen, and families from Pakistan. We are in continual contact with country managers giving them guidance and reassurance” • Director of Security, major UK company in the retail business

  15. Evacuation • “We are evacuating families and non essential staff on a case by case basis. • Crisis Management Teams have been mobilized along with an escalation of contingency plans in anticipation of fall-out from US retaliation” • Security Director of leading US company in the IT sector.

  16. Evacuee’s comments about Head Office • No attempt to keep relatives informed • Nobody from company met evacuees on arrival in UK. Media were there • Put in hotel for three days then tried to move evacuees to a cheaper one • No company contact with his wife • Little interest shown towards evacuees • No counseling offered

  17. BOMB THREATS • Improve access controls to protect buildings against bomb attacks • Review procedures for receipt of bomb threats • Review building evacuation procedures for bomb threats (different from fire evacuations) • Train guards and parking lot attendants to be alert for bomb devices • Know how to handle suspect letters and packages

  18. SENIOR EXECUTIVES • Review residence security for senior executives, particularly those who take a public pro-American stance. • Enforce corporate policies prohibiting senior executives travelling on the same flight

  19. As individuals what can we do? Whether in the US or overseas we must become more: • Aware • Vigilant • Suspicious

  20. Vulnerabilities • Most secure office/workplace • Less secure at home • Even less secure travelling by car • Least secure on foot

  21. The Threat to Travelers • Crime • Kidnap • Illegal Detention • Hijack • Caught in the Crossfire (organized crime, civil strife, terrorism, gang warfare)

  22. Before traveling do your research • Country Analysis • Embassy • Subscription political risk services (CRF covers 124 countries) • Other companies operating in market • Industry association libraries • Local government, chambers of commerce

  23. ? ? American Airlines #77 American Airlines #11 ? ? United Airlines #175 United Airlines #93 Hijack Suspected

  24. Hostage Survival If you can’t escape: surrender • Focus on survival • Develop a positive relationship with your captors • Maintain mental discipline: ask for books • Exercise Never give up

  25. CONTROL RISKS GROUPELAINE CAREYNATIONAL DIRECTOR OF INVESTIGATIONS