Aon Crisis Management

AURIMS 2008

Aon Crisis Management

Specialty unit of Aon

Experts in specialist areas.

Main areas of expertise

The practice group is a worldwide initiative.

Strategic risk management

Expertise

Risk Management Risk Transfer

Crisis management

Crisis consulting

Counter-terrorism

Country risk

Recall consulting

Insurance broking

Finance professionals

Bomb expertsRisk analysis

Protecting - People, Assets, Products & Contracts

Risks

Crime

Kidnap/Detention - travel risk

Extortion

Sabotage & Terrorism

Evacuation & Repatriation

Kidnap for Ransom - Where it happens

MexicoColombiaBrazil (Sao Paulo)HaitiIraqVenezuelaIndiaNigeriaBangladeshRussian FederationArgentinaPhilippines

Countries to watch: El Salvador, Guatemala, Yemen, Honduras, Malaysia, Spain, Georgia & the five ‘Stans’, Indonesia

Why at risk

Appearing Lost: unfamiliar territory

Perceived Wealth: worth the effort

Visibility: high profile

Publicity

Kidnap: the statistics

More than 30,000 kidnaps occur each year

70% of worldwide kidnaps are in Latin America, however with regards to foreign nationals, the number of kidnaps in Middle East and Africa outnumbered Latin America in recent years

Some 50% of kidnaps are resolved by ransom payment

Less than 10% of hostages are killed or die

The safest way to resolve a kidnap is by negotiation.

Source: CRG, January 2007

Kidnap: the statistics

Kidnap: the statistics

Kidnap: the statistics

Kidnap: the statistics

Kidnap: the statistics

Kidnap Outline

•Time increases risk and cost to kidnappers•Negotiation must show diminishing returns

Negotiation

Gathers information

Gives objective advice

Trains a communicator

Develops financial and negotiation strategy

Prepares the company to make the right decisions

Enables senior executives to manage the business

Response Consultant

Comprehensive Risk Management

Loss Avoidance Option

Risk Transfer Insurance

Preparedness Emergency Response Plan Crisis Management Plan Business Continuity Plan Counter-terrorism Risk Profiling

Preparation

Crisis Management Team

Corporate Communications

Personal profile forms – staff & students

Staff training

Responsibilities

Personal safety & security

Reduce travel risks by good planning and procedures

Safe Travel Planning

Arrival Procedures

Prudent Behavior During the Stay

Departure Procedures

Coping with Captivity

Safe travel

Balancing business with security

Planning the trip

Packing

Air travel

Arrival at destination

Moving around town

Departure procedures

Coping with captivity

Remain calm: captors will be nervous & jumpy

Follow instructions: Do not give cause to harm you

Be Respectful – but NOT subservient

Build human relations

Avoid political discussions

Behavior

Coping with captivity

Keeping alert & fit

Eat whenever food is offered

Exercise as much as possible

Invent ‘Mind Games’

Do not be worried by the ‘Stockholm Syndrome’

Crisis Communication

Reporting can make or break public loyalty

Emphasis that University is acting appropriately and effectively

Establish single spokesperson

Never lie and never “no comment”

Importance of internal communication

Summary

Less than 1% of kidnap victims are insured

Incidents involving expatriates invariably end in threatened litigation and out of court settlements

Kidnap, extortion and associated risks are now foreseeable events

All organisations sending people abroad should plan for the worst

The risk is increasing year on year.