Control Risks Group, LLC CR

Control Risks Group, LLC

CRCRGG Control Risks GroupControl Risks Group

Lessons learned…Lessons NOT learned?

Casualty Actuarial Society

May 21, 2002


CRCRGG Our MissionOur Mission

Control Risks Group enables its

ClientsClients

to succeed in complex

or hostile business environments


CRCRGG

Sao Paulo

Mexico City Bogota

Los Angeles

Washington

Berlin

Amsterdam

London

Moscow

Tokyo

Manila

Singapore

Jakarta

Melbourne

Sydney

Control Risks Group - Control Risks Group - An International Business Risk ConsultancyAn International Business Risk Consultancy

New York

Edinburgh

JamaicaAntigua


CRCRGG WHY is US business at risk? Still…WHY is US business at risk? Still…


CRCRGG

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.


CRCRGG ContinuedContinued

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


CRCRGG

Why has the risk increasedto US business?

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?


CRCRGG 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


CRCRGG 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


CRCRGG So what should companies do now?

Fight complacency!So what should companies do now?

Fight complacency!

Prepare

Educate

Respond


CRCRGG Crisis Management &

Travel Safety SystemsCrisis 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



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.



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.


CRCRGG EvacuationEvacuation

“ 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


CRCRGG EvacuationEvacuation

“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.


CRCRGG Evacuee’s comments about Head OfficeEvacuee’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


CRCRGG BOMB THREATSBOMB 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


CRCRGG SENIOR EXECUTIVESSENIOR 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


CRCRGG As individuals what can we do?As individuals what can we do?

Whether in the US or overseas we must become more:

Aware Vigilant Suspicious


CRCRGG VulnerabilitiesVulnerabilities

Most secure office/workplace

Less secure at home

Even less secure travelling by car

Least secure on foot


CRCRGG The Threat to TravelersThe Threat to Travelers

Crime

Kidnap

Illegal Detention

Hijack

Caught in the Crossfire (organized crime, civil strife, terrorism, gang warfare)


CRCRGG

Before traveling do your research 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


CRCRGG HijackHijackHijackHijack

United Airlines #175

?

American Airlines #77

?

American Airlines #11

?

United Airlines #93

?


CRCRGG Hostage SurvivalHostage Survival

If you can’t escape: surrenderFocus on survivalDevelop a positive relationship with your captorsMaintain mental discipline: ask for booksExercise

Never give up


CRCRGG

CONTROL RISKS GROUPELAINE CAREY

NATIONAL DIRECTOR OF INVESTIGATIONS

CONTROL RISKS GROUPELAINE CAREY

NATIONAL DIRECTOR OF INVESTIGATIONS

Documents

Control Risks Group, LLC CR