Expert Insight: Kidnap and Ransom

Terrorism, corruption, kidnapping and violent crime are all pitfalls that businesses have fallen foul of globally in the past few years. KCS Group is one of the world’s leading strategic intelligence companies. Its owner and managing director Stuart Poole-Robb has spent his life travelling to the world’s most hostile regions. Now he advises British companies on how to make money in those difficult nations. Here, he reveals his dos and don’ts about how to survive in dangerous business environments and avoid kidnapping situations.

“In today’s world, business travellers, expatriates and tourists are frequently the target of political, military, or criminal organisations that practise kidnapping and hostage-taking as a means of applying pressure and for financial gain.

“In many of the world’s leading danger zones – South America, the Arab Maghreb Union, Africa and the former Soviet Union – business people are seen as fair game by disaffected locals, criminals and terrorists, and kidnapping executives for ransom has long been a growth industry. Today, as the age of corporate globalisation collides with international terrorism, companies are expanding their risks as rapidly as they broaden their reach. Cigarettes, confectionery and communications are all areas in which British businesses are making inroads, but at considerable risk to their own security.

“A common misconception is that kidnappers prefer to target chief executives. In practice, however, they find it easier to abduct employees that are most exposed and least protected, like engineers, technicians, oil workers and even sales personnel.

“In Colombia, where more than 3,000 kidnappings and $250m (€190m) in ransom payments are collected in a typical year, the kidnapping of Americans and other foreigners, along with well-to-do locals, has become a way of life for rebel armies and gangs of criminals. Mexico City has a reputation as the kidnap capital of the world. And in these places, western business executives are legitimate targets for feuding drug cartels looking to extort ransom money.

“Recent events in the Middle East, from the war in Afghanistan to the ongoing violence associated with the Arab Spring uprisings, make that part of the world a danger zone unlike any other. Over the years, the kidnapping and murder of company executives, engineers, oil workers and journalists reporting on events in the Middle East have provided chilling cautionary tales for any organisation with civilian employees stationed in high-risk countries.

“In the Niger Delta, one of the world’s biggest oil-producing regions, Islamic militancy in the north of the country and warring tribal feuds in the south have made the entire area incredibly dangerous, with kidnappings an almost daily occurrence.

“As well as oil, other natural resource industries such as gas, rubber, and sugar refining are all legitimate targets, as are the many UK companies employing British nationals to work in the region. And as we know, the kidnapping by Somalian pirates of British nationals sailing in the Indian Ocean has been a thriving business since 1990.

“Terrorist kidnappers in East Africa, Malaysia and Thailand have also stepped up their activity, snatching and sometimes murdering foreign tourists vacationing in remote areas of those countries.

“So, how can companies manage kidnap and ransom risks effectively? And what’s the best way for employers to prepare for and mitigate losses associated with kidnappings?

“KCS recommends employers put their employees through a rigorous training programme designed to make them more aware and to help them assess the local cultural and political situation. In addition, employees should be taught what to do, and not to do, in the event that they are kidnapped.

“Employers should let their employees know what type of action the company will take to  secure their release and inform them that it could take months to free them.

“Finally, stress to employees that negotiations should always be left to the security consultants and insurance professionals who have been hired to handle the situation.”