Dangers lurking: with kidnappings on the rise, companies need to become more aggressive securing the safety of employees who travel or work overseas. Often, "a little prevention goes a long way," one expert says

Risk & Insurance, Oct 1, 2004 by Carol Patton

Nearly 15 years ago, senior executives from a U.S. chemical company flew to Malaysia on a business trip. After their plane landed, they were met at the airport by a security team, who was to drive them to their hotel.

According to a company official, one executive, however, flat out refused to join them, believing he didn't need the added protection. Despite their repeated pleas, he hailed a cab to take him to the hotel.

It didn't take long for the cab driver to realize his passenger was American. At the time, American troops were fighting Iraqis in the Gulf War. The cabby voiced his opposition to the war and the United States, drove the man to the middle of the jungle, physically forced him out of his car, then sped off. The executive walked for roughly one hour at night in a jungle infested with scorpions before he accidentally stumbled onto huts along the road. One of the locals walked with him for another three hours to reach a phone for help.

Such sentiments and dangers haven't really changed since then, except that the stakes are much higher for American workers. As recently reported by USA Today, at least 29 Westerners were killed between May and June in Saudi Arabia alone. Considering the loss of civilians such as Lockheed Martin engineer and New Jersey native Paul M. Johnson Jr., telecommunications entrepreneur Nicholas Berg of West Chester, Pa., and South Korean businessman Kim Sun-il--all recently kidnapped and beheaded by terrorists in the Middle East--the world has clearly become a more dangerous place for overseas business travelers.

Experts say such violent acts appear to be on the rise, though no global statistics are available. Kroll Security International, a high-risk security group and subsidiary of Marsh Inc., a global risk and insurance firm, only started keeping rough numbers at the beginning of 2003 as concerns over international terrorism continued to mount. According to Kroll's security experts, last year alone 4,000 kidnappings occurred in Colombia, 3,000 in Mexico and another 2,000 in Argentina.

COLLABORATIVE EFFORT

Since the Sept. 11 terrorist attacks, a number of senior executives have revitalized their interest in crisis-management committees--internal company groups assigned to deal specifically with terrorist acts such as kidnappings, says Donald Palmer, head of the crisis-management practice at London-based Kroll.

According to Palmer, most committees are composed of an HR executive, a legal adviser, a public relations manager, a finance director, a collection of communicators--who relay information to kidnappers, the media and other sources--and a board member with autonomous decision-making ability. Typically, senior management makes these appointments, which are frequently based on candidates' titles and experience.

Once the committee is formed, members then select deputies who can replace them in their upcoming absences, Palmer says. Likewise, kidnapping simulations need to be conducted quarterly, which can be coordinated with a security firm that offers training packages designed for a test environment.

Many companies are now establishing humanitarian response teams, subcommittees of crisis-management committees, says Bruce Blythe, CEO at Crisis Management International, an Atlanta firm that specializes in crisis preparedness.

The subcommittee deals with the myriad people affected by the crisis. As an example, Blythe points to a real crisis that occurred back in 1990.

Eight oil workers in Ecuador were held hostage for 141 days by Colombian guerillas. One of the hostages was killed when the oil company refused to pay $80 million in ransom. Afterward, the company was told if the kidnappers' demands weren't met within 15 days, another oil worker would be murdered. After lengthy negotiations, the company dropped $13.5 million in $100 bills in a specified area on a riverbank, then flew into the jungle and picked up the hostages.

During and after this scenario, the company provided constant updates to victims' families and crisis counseling to everyone involved from the hostages themselves to local employees such as recruiters and those who worked on the oilrig.

Blythe says kidnappings create ongoing situations that continue to "bubble up" and demand attention.

Despite a committee's expertise, the group "needs to listen to the advice of experienced negotiators from international security firms who are able to give advice centered on one thing--the safe return of the hostage in the quickest possible time," Palmer says.

In addition to helping perfect crisis-management and security practices, such committees can also help their companies develop positive reputations overseas by encouraging top leaders and compensation directors to establish fair-wage pay policies for local employees. This way, says Palmer, if a kidnapping does occur, the community--including local law enforcement authorities will be more inclined to support the company and secure the safe release of the hostage.

Such preplanning and crisis-management coordination, however, is still in its infancy.