Corporate Attorneys Brace for War's Impact On International Trade And Prepare For Business And Security Crisis In Asia & Europe

Business Wire, March 27, 2003

Business Editors

NEW YORK--(BUSINESS WIRE)--March 27, 2003

NY Port Authority General Counsel Advises Peers on "Doing Business in the Shadow of War" at ACCA/CGIS Briefing

Corporate counsel from New York's top businesses and government organizations gathered in New York yesterday morning to discuss "Doing Business in the Shadow of War," at a breakfast briefing hosted by Citigate Global Intelligence & Security (CGIS) -- an international business intelligence, investigations and corporate security firm -- and the American Corporate Counsel Association.

A survey of attendees revealed that many organizations are not fully prepared to address the potential impact of the war on its business at home and overseas, and that management hasn't clearly outlined the risks and response plans for all employees. The prevailing sentiment among attendees indicated that most management teams have not yet clearly outlined the risk and response plans for all employees.

The event, attended by 45 corporate counselors, aimed at informing general counsel and senior executives about how to develop solid crisis plans for North American and overseas operations during war and terrorist-prone periods, as well as the role that corporate counsel play in the process.

The program was moderated by Ernest Brod, CEO of CGIS, who remarked, "The unprecedented confluence of recession, war, and recovery from stock market turbulence has produced failed ventures, frayed relationships, resentful employees and desperate competitors. As a result, organizations are subject to increased litigation, asset searching, fraud, conflicts of interest, phony accounting, sabotage and violence."

General Counsel of the Port Authority of New York and New Jersey Jeffrey Green, an attorney who has been intimately involved with anti-terrorism in the U.S., related his experiences with both the 1993 Trade Center bombing and the attacks of September 11. He explained how preparedness procedures and "table-top" exercises put into place after the 1993 bombing made his office's response to September 11 more smooth and efficient. He advised attendees to develop a solid crisis response plan that includes a media communications strategy, as well ways to deal with potential environmental, financial and political catastrophes. "Don't be forced to create a plan as a bad situation unfolds, but do have one in place that you can follow, have rehearsed, and that can be adjusted accordingly."

Paul Viollis, head of the Security practice for CGIS, urged Corporate America to adjust to the types of cautionary cultural changes that have taken place in other countries that have long been bedeviled by terrorism, such as the UK and Israel. Mr. Viollis warned that failure to meet the "standard of care" for incidents of terrorism, sabotage, and/or workplace violence could subject companies to massive liability. He recommended that companies have measures in place to fill potential security gaps such as mailroom handling, visitor escorts and background checks for all employees and suppliers.

Eric Shimp, director of the Strategic International Business Practice at Hunton & Williams, Virginia's largest law firm and one of the 40 largest firms in the world, cautioned attendees to expect disruptions to American businesses in Europe, where anti-U.S. sentiment is high: "Governments are playing out a trans-Atlantic jousting match for world influence. North American business leaders can certainly continue to pursue and conduct business overseas, but not it must be done in a more strategic manner."

About Citigate Global Intelligence & Security

Citigate Global Intelligence & Security is an international business intelligence, corporate investigations and business controls/security consulting firm focused on helping clients meet increased intelligence and security needs. Founded by former senior executives of Kroll Associates and PricewaterhouseCoopers, CGIS offers clients seamless access to leading practitioners in the fields of business investigations, investigative due diligence, hostile takeovers, business and competitor intelligence, forensic accounting, business controls, commercial disputes, corporate and computer security, and crisis management. CGIS is headquartered in New York with offices in Los Angeles, Boston, Miami, Dallas, Chicago, Atlanta, Washington, D.C. and Geneva. For additional information about CGIS, visit the firm's web site at www.citigategis.com