Connecticut Conference of Independent Colleges

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Connecticut Conference of Independent Colleges

• Security Risk Management Presentation
• June 14, 2006

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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

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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

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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

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Express Kidnap

• Latin America
• Short Term
• Focused on ATM withdraw and immediate possessions
  
• Brutal and traumatic
• Transition into kidnap for ransom

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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

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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

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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

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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).

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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.

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Security Related Duty of Care

• Physical Security
• Proprietary / Confidential Information

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Responsibilities

• Assess and analyse their risks
• Take reasonable steps to prevent incidents
• Manage and/or transfer financial risk
• Ensure an effective response

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Evaluation

• Review territorial exposures
• Evaluate individual profile
• What is the operational environment
• Political risk information

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Prevention

• Clear and concise travel policies
• Dissemination of information
• Provide employee and student training
• Clear lines of communication

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Ensure an effective response

• Access to qualified incident responders
• Develop and maintain crisis management plan
• Test procedures (Table top exercises)

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Manage and/or transfer financial risk

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

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KR Market Perception

• Unimportant in the context of an overall
  insurance program by risk management and brokers
• Infrequent claims activity
• Loss severity insignificant

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KR Perception vs. Reality

• Unimportant vs. critical security role
• Infrequent claims vs. unclaimed incidents
• Loss severity insignificant vs. broad implications

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KR Coverage Outcome

• Risk Management purchases coverage as an after
  thought
• Placed by generalist broker (executive risks
  broker at best)
• Coverage discussed only briefly

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KR 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

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KR 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

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KR 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

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KR 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

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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

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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

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KR 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)

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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
  organizations 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?

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KR Integral Component of Security Risk
Management Strategy

• Mitigating threat through
• Prevention planning
• Risk transfer
• Professional Incident Response

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Contact Information

• Paul Mills
• 44 207 208 5229
• millsp_at_scr-ltd.co.uk
• Derek Rogers
• 212 804 0538
• derek.rogers_at_scr-ltd.co.uk
• Lisa Zanotelli
• 212 804 0539
• lisa.zanotelli_at_scr-ltd.co.uk