Ongoing Security Risks to Mining Companies

Transcription

1 SPECIAL CONTINGENCY RISKS LTD Ongoing Security Risks to Mining Companies November 11, 2016 INFORM PREVENT RESPOND INSURE

2 Agenda SCR Introduction The Threat Landscape Who is at Risk What is at Risk Interesting Facts from How Companies Can Navigate This Landscape Kidnappings by a Proscribed Terrorist Group Take Aways

3 Who we are Established, global leader in People Risk insurance 30 35% global market share Insurance lines: : Kidnap and Ransom Threat and Extortion Security Evacuation Active Shooter / Workplace Violence Over 40 years experience advising clients In-house Intelligence and Security Consultancy 24-hour Emergency & Crisis Support

4 Threat Landscape A Complex World of Security Risks

5 Terrorism A continued threat in Africa Al-Qaeada in the Land of the Islamic Maghreb (AQIM) Sahel region south of Sahara Burkina Faso Mauritania Mali Niger Senegal Islamic State Group (ISG) via Nigerian Boko Haram Nigeria Ivory Coast Central African Republic Burkina Faso Al-Shabaab Somalia Kenya Uganda Ethiopia

6 Threat Landscape Kidnap for Ransom TOP 10 COUNTRIES FOR KIDNAP OF FOREIGN NATIONALS Mexico Mexico Libya 2. Venezuela Libya Mexico 3. Nigeria Syria Syria 4. Pakistan Nigeria Mali 5. Afghanistan Afghanistan Iraq 6. Syria Pakistan Afghanistan 7. Mali Mali Nigeria 8. Philippines Yemen Yemen 9. Libya Philippines Philippines 10. Colombia Iraq Sudan Source: SCR Annual Kidnap Review 2015

7 Threat Landscape Your Role in the Environment Local Projects and the Promise vs. Delivery Gap Employment Fair Pay Housing Education Projects Foreigners and their investments as legitimate targets Being the sole foreign operator in region = easy target Representative of the West and exploitation Perceived wealth of workforce

8 Who is at Risk Your People Employees Contractors Business Travellers Expatriates Local nationals Families What is at Risk Duty of Care Corporate Reputation Business Continuity Legal Liability

9 Interesting facts from Global Board Members: 1. Feeling ready vs. being ready 76% felt their companies would respond effectively during a crisis 49% of Board members say their companies engage in risk mitigation 49% say their companies have a crisis management plan for crisis scenarios Only 32% engage in crisis simulations or training. 2. Ranking the threats 73% corporate reputation 70% Cyber-crime 68% Rumours 66% supply chain issues, regulatory action & natural disasters 3. A vulnerability gap between awareness and preparation 73% named reputation as a vulnerability YET only 39% had a crisis plan 4. Board members are not engaging with management Less than 49% of Board members have engaged with management to support prevention measures and crisis management 5. No quick fixes Less than 30% who had experienced a crisis reported their reputations recovering in less than 1year. 16% said it took more than 4 years. Source: Deliotte survey of 300 Global Board Members

10 TRADITIONAL APPROACH TO DUTY OF CARE = INSURANCE INSURANCE = RESPONSE TO LOSS HOW CAN BROKERS HELP CLIENTS BRIDGE THE GAP?

11 Corporate Policies and Procedures ASSESS THE RISK Identify and Monitor the Risks (from Medical to Security) Employees / Contractors / Families Internal Ownership: (HR, Risk Management, Security, Legal) Corporate Social Responsibility: The need to involve all key player s not just Corporate Security s problem Develop robust corporate governance policies and procedures and integrate these into your corporate global and regional manuals Access to Online Information and Intelligence Alerts Linked to risk management process - (Travel) Security polices - Crisis Management - Insurance Threat Assessments Understanding the local environment, local policy, key players = understanding vulnerabilities and threats Protection plans against Attacks at mining sites Defence mechanisms against Threats / Intruders In depth analysis of geo-political risks at overseas operations

12 Corporate Policies and Procedures MITIGATE THE RISK Kidnap Crisis Management Training Anatomy of a kidnap Formation of a Crisis Management Team (CMT) Simulated Incidents Active Listening Training Diffusing Conflict and Aggression Family Liaison Traveller Awareness Seminars or elearning High risk travellers Journey Management advice Personal security training Evacuation Crisis Management Simulated incident Evacuation Planning / awareness Terrorism Surveys Threat Assessment Vulnerability Survey Scenario Development Blast Modelling and calculations Mitigation and planning recommendations

13 Corporate Policies and Procedures MANAGE THE RISK BE PREPARED: Prevention is better than the cure Constantly evaluate and practice Crisis management plans and procedures COMMUNICATION support and build confidence Effective crisis management procedures resilience Incident co-ordination practice Expectations of Brokers/Carriers: Understanding client s local security partnerships how these may be integrated into existing People Risk insurance programs Identify and validate third party providers (Insurance linked or other) Integrate insurance programmes into plans and procedures Kidnap & Ransom and Political Evacuation Business Travel Insurance Workers Compensation incl. FVWC General Liability

14 Kidnappings by Proscribed Terrorist Groups Definition of a Proscribed Terrorist Group Recent Cases Syria, Egypt, Iraq Mali, Somalia Philippines Response by Governments Historic vs. Recent US: Executive Order (POTUS) and OFAC UK: Proposed Counter-Terrorism and Security Bill United Nations

15 Kidnappings by Proscribed Terrorist Groups Insurance Coverage Coverages likely to be excluded Coverage likely to remain in place How a Kidnap case involving a Proscribed Terrorist Group Differs The Crucial Role of the Broker

16 TAKE AWAY BE PREPARED

17 Questions

18 Thank you! Philipp Seel Senior Vice President SCR, Inc