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Connecticut Conference of Independent Colleges. Security Risk Management Presentation June 14, 2006. Changing Security Environment. War on terrorism Asymmetric Warfare More traditional criminal activity in developing countries Organized Crime Opportunity Driven Crime

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Connecticut conference of independent colleges

Connecticut Conference of Independent Colleges

Security Risk Management Presentation

June 14, 2006


Changing security environment

Changing Security Environment

War on terrorism

  • Asymmetric Warfare

    More traditional criminal activity in developing countries

  • Organized Crime

  • Opportunity Driven Crime

    Rise of non-traditional security threats

  • Cyber Crime

  • Piracy

    Political instability in developing countries

  • Rapid deterioration in security environment


Kidnap abduction growing problem

Kidnap/Abduction : Growing Problem

  • One of the fastest growing crimes in the developing world

  • Involves life and death decisions

  • Requires specialized expertise

  • Requires significant resources and time

  • Can have major impact on reputation

  • Can involve prolonged legal action


Connecticut conference of independent colleges

Kidnap/Abduction : Growing Problem

Political

  • Force the government or the enemy to succumb to some demands

  • Create a political embarrassment / highlight issue

  • Harm trade / tourism or strike enemy

    Economic

  • Obtaining ransoms

  • Organized Crime

  • Worldwide problem


Connecticut conference of independent colleges

Express Kidnap

  • Latin America

  • Short Term

  • Focused on ATM withdraw and immediate possessions

  • Brutal and traumatic

  • Transition into kidnap for ransom


Kidnap environment

Kidnap Environment

Growing problem in developing world

  • Income Disparity

  • Access to arms and expertise

    Countries of Concern

  • Mexico

  • Philippines

  • Venezuela

    Rapidly changing conditions

  • Peru

  • Haiti


Connecticut conference of independent colleges

Other Threats

  • Civil Commotion / Civil War / Coup

  • Piracy

  • Detention by foreign government

  • Extortion

  • Threats of Violence against people and property

  • Abduction / Sexual Assault

  • Cyber Extortion


Connecticut conference of independent colleges

International Resources

Local Law Enforcement

  • Training / Pay

  • Corruption

  • Motivation

    US Embassy

  • Limited role

  • Local context

    Private Firm

  • Primary interest is protecting victim / client

  • Professionally trained

  • More experience

  • Local contacts

  • Integrated into crisis management planning


Connecticut conference of independent colleges

Study Abroad Program Destinations

U.S. students going to less traditional destinations

  • The growth of interest in studying outside Western Europe

  • Broadening of the overseas curricula

  • the increasing number of programs requiring less than a full academic year

  • Instruction in English has made broader range of sites available

  • Awareness of the need for global education has become more widespread

  • Countries with large increases included: South Africa (1,456, up 32%), (1,064, up 40%), Thailand (836, up 69%), Peru (522, up 47%), Singapore (231, up 97%), Senegal (211, up 51%), and El Salvador (145, up 86%).


Case study

Case Study

In March 1999, Elizabeth Garland, an anthropology student at the University of Chicago, nearly died when Hutu rebels kidnapped and killed eight of her party in the jungles of Uganda. The Peace Corps had pulled its volunteers out of Uganda in 1991 and kept them out, saying it could not ensure the safety of its workers there.


Security related duty of care

Security Related Duty of Care

  • Physical Security

  • Proprietary / Confidential Information


Responsibilities

Responsibilities

  • Assess and analyse their risks

  • Take reasonable steps to prevent incidents

  • Manage and/or transfer financial risk

  • Ensure an effective response


Evaluation

Evaluation

  • Review territorial exposures

  • Evaluate individual profile

  • What is the operational environment

  • Political risk information


Prevention

Prevention

  • Clear and concise travel policies

  • Dissemination of information

  • Provide employee and student training

  • Clear lines of communication


Ensure an effective response

Ensure an effective response

  • Access to qualified incident responders

  • Develop and maintain crisis management plan

  • Test procedures (Table top exercises)


Manage and or transfer financial risk

Manage and/or transfer financial risk

“Kidnap and Ransom” insurance a basis for security risk management program?


K r market perception

K&R: Market Perception

  • Unimportant in the context of an overall insurance program by risk management and brokers

  • Infrequent claims activity

  • Loss severity insignificant


K r perception vs reality

K&R: Perception vs. Reality

  • Unimportant vs. critical security role

  • Infrequent claims vs. unclaimed incidents

  • Loss severity insignificant vs. broad implications


K r coverage outcome

K&R Coverage: Outcome

  • Risk Management purchases coverage as an after thought

  • Placed by generalist broker (executive risks broker at best)

  • Coverage discussed only briefly


K r security risk management program

K&R = Security Risk Management Program

Potential applications of comprehensive program:

  • Workplace Violence

  • Animal Rights Activism

  • Cyber Extortion

  • Proprietary Information threats

  • Abduction

  • Child Abduction

  • Wrongful Detention

  • Bomb Threats

  • Security threats due to coup, civil commotion, civil commotion etc

  • Piracy


Connecticut conference of independent colleges

K&R = Security Risk Management Program

Dealing with wide range of threats:

  • Extortion

  • Hijacking

  • Evacuation

  • Incarceration by foreign government

  • Threats to kill or injure

  • Threats to damage property

  • Threats to reveal confidential information

  • Disappearance of faculty or staff

  • Abduction

  • Individuals or organization declared persona non grata


Connecticut conference of independent colleges

K&R = Security Risk Management Program

Providing wide range of financial benefits

  • Fees and expenses of response consultants with priority access

  • Organizational liability

  • Legal fees

  • Loss of Revenue / Tuition reimbursement

  • Evacuation and Repatriation Expenses

  • Costs of personal protection

  • Additional site security

  • Public Relations

  • Medical / Psychiatric costs

  • Parental Expenses

  • Death or Injury Benefit


Connecticut conference of independent colleges

K&R = Security Risk Management Program

World class security expertise

  • Access to security professionals without the cost of a retainer

  • Immediate advice

  • On the ground deployment within 24 hours worldwide

  • Access to subject matter experts


Are they qualified

Are they qualified?

Proliferation of security offerings post 9/11

  • US Government outsourcing

  • Kidnap response expertise

    Carrier / Response relationship

  • ACE/Neil Young Associates

  • AIG/Thomas A. Clayton Consultants

  • Chubb/Ackerman Group

  • Great American (Hiscox)/Control Risks Group

  • PIA (Liberty Insurance)/Corporate Risks International

  • St. Paul/Kroll Associates


Response evaluation

Response Evaluation

Cases handled

  • Actual deployment and guidance

    Regional specific expertise and language

    Logistical capability

    Responder employment relationship

  • Salaried/Retained/Subcontracted

    Training and qualifications

    Operating philosophy and procedures


K r security risk management program1

K&R = Security Risk Management Program

Most markets will absorb costs of full or partial consulting services

Organizational planning

  • Crisis Management Planning

  • Simulation exercises

  • Communication

    Operational security

  • Pre-deployment training development

  • Evacuation planning

    Travel Security

  • Country briefings

  • Journey management

  • Cultural advice

  • Dealing with confrontation

  • Safety protocols in host country (street awareness)


Connecticut conference of independent colleges

Questions for Educational Institutions to Consider

  • Does your institution have Crisis Management Procedures to address threats faced domestically and of study abroad programs?

  • Are you solely or heavily depending on State Department Warnings to monitor changing international environments?

  • Are you solely or heavily depending on the US embassies in country to assist in the event of a political evacuation?

  • Are you depending on “Waivers” to protect your organization’s legal liability?

  • Can your organization feel comfortable in front of a jury detailing the proactive approach your institution undertakes to protect students and faculty abroad in the event of an incident and ensuing litigation?

  • When was the last time your organization reviewed and tested your Crisis Management Plan?

  • How have your Plans changed with the changing global security environment and increase in threats to computer systems?

  • What does your “pre-deployment” advice/training consist of for students and faculty going abroad?


Connecticut conference of independent colleges

K&R = Integral Component of Security Risk Management Strategy

Mitigating threat through:

  • Prevention planning

  • Risk transfer

  • Professional Incident Response


Contact information

Contact Information

Paul Mills

+ 44 207 208 5229

[email protected]

Derek Rogers

+212 804 0538

[email protected]

Lisa Zanotelli

+212 804 0539

[email protected]


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