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

2. Control Risks Group, LLC CRG Our Mission Control Risks Group enables itsClients to succeed in complex or hostile business environments

3. Control Risks Group, LLC CRG Sao Paulo Mexico City Bogota Los Angeles Washington Berlin Amsterdam London Moscow Tokyo Manila SingaporeJakartaMelbourneSydney Control Risks Group - An International Business Risk Consultancy New York Edinburgh Jamaica Antigua

4. Control Risks Group, LLC CRG WHY is US business at risk? Still…

5. Control Risks Group, LLC CRG 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. Control Risks Group, LLC CRG 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. Control Risks Group, LLC CRG Why has the risk increased to US business? US retaliation, collateral damage Significant deterioration in the Israel-Palestine situation Arab demographics Attacks on other countries; Iraq, Syria?

8. Control Risks Group, LLC CRG 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. Control Risks Group, LLC CRG 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. Control Risks Group, LLC CRG So what should companies do now? Fight complacency! Prepare Educate Respond

11. Control Risks Group, LLC CRG 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. Control Risks Group, LLC CRG 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. Control Risks Group, LLC CRG 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. Control Risks Group, LLC CRG 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. Control Risks Group, LLC CRG 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. Control Risks Group, LLC CRG 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. Control Risks Group, LLC CRG 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. Control Risks Group, LLC CRG 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. Control Risks Group, LLC CRG As individuals what can we do? Whether in the US or overseas we must become more:  Aware  Vigilant  Suspicious

20. Control Risks Group, LLC CRG Vulnerabilities Most secureoffice/workplace Less secureat home Even less secure travelling by car Least secure on foot

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

22. Control Risks Group, LLC CRG 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. Control Risks Group, LLC CRG HijackHijack United Airlines #175 ? American Airlines #77 ? American Airlines #11 ? United Airlines #93 ?

24. Control Risks Group, LLC CRG 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 Group, LLC CRG CONTROL RISKS GROUP ELAINE CAREY NATIONAL DIRECTOR OF INVESTIGATIONS