Security: Reducing the risks, planning for the 'unthinkable'.

Political terrorism is just one of the many risks of doing business in Latin America. The terrorist attacks on the World Trade Center in New York and the Pentagon in Washington have shown that no organization is immune from a devastating act of violence.

In Latin America, as in the rest of the world, the risks facing businesses range from outside attack and employee fraud to the theft or destruction of electronic business information.

"Wherever there is opportunity, there is risk," says Jules B. Kroll, founder and executive chairman of Kroll Inc. (NASDAQ: KROL), a global risk consulting company specializing in investigative, intelligence and security services. "But there are always proactive steps you can take to reduce those risks."

Bruce Goslin, managing director of Kroll's Miami office and the Latin America region, says businesses now have to plan for the "unthinkable." While organizations can't account for every potential security risk, it is essential to have a crisis management plan in place. "Then, if the unthinkable occurs, you can respond quickly, minimize the damage and keep your company moving forward."

Luis Reveiz, director of Kroll's security group, says the risks facing multinational companies in Latin America have increased following the U.S. government's declaration of war on terrorism. "Any company with ties to America may be a potential target," he says. "There are a number of known Mideast terrorist cells in Latin America, in addition to indigenous revolutionary groups."

Having up-to-date intelligence helps executives evaluate potential security risks in today's fast-changing world. Travel advisories, political risk assessments and updates on international terrorist activities -- as well as regionspecific or industry-specific reports -- can provide essential data and analysis, says Odalys Fajardo-Guerrero, director.

Fajardo-Guerrero expects that the attacks will have a negative impact on Latin economies, at least in the short term. And difficult economic conditions mean that common criminals may become involved in politically oriented attacks. As she says, "Everything has its price."

One of the biggest potential risks for organizations is employee fraud, theft or sabotage. "You have to know who you hire, not only with respect to fulltime employees but with temporary employees," says Reveiz. "Make sure you do pre-employment screening. Secondly, make sure that the people you hire understand the rules of the road. Third, if there's a bad act in your company, make sure it's dealt with aggressively and swiftly as an example to others."

New kinds of fraud include identity theft and various kinds of hacking to conduct economic or industrial espionage. "In particular, you have to be careful where there has been a substantial in reduction in employment of a country's security or intelligence services," says Goslin. "All of sudden there is a whole new inventory of talented people who are out on the market and need to make a living."

David Hill, director for information security, notes the importance of protectingcomputer files that are essential to a company's operations. "The only way to keep a business going in the event of a fire, tornado, sabotage or attack is to be able to bring that data back online," he says. "And companies should ask themselves how difficult would it be for a disgruntled information technology manager to shut down the system with just a few keystrokes?"

The solution is having an effective disaster recovery plan in place, with continual data backups through "mirroring" systems, and data storage in at least two geographically separate locations. "A company with offices in Miami and Latin America can mirror their systems so that each office could restore data should one system be damaged or destroyed," Hill says.

Another area of increased security concern is executive travel. Reveiz advises organizations sending executives to Latin America have clear policies and procedures in place. That includes educating business travelers about potential risks and providing protective escorts if warranted. In addition to reducing potential threats against the traveling executive, clear policies -- such as contacting the home office every day at a specified time -- reduce potential liability for employers if the executive is robbed, assaulted or kidnapped.

"Because every company is different, the security measures taken also vary," says Reveiz. But it is important for Latin companies to recognize the increased need for security today and take appropriate action. For example, companies might conduct more background investigations on personnel, hire more security guards or install surveillance cameras.

Goslin believes that Latin America companies can be most successful by focusing on their core business and bringing in security professionals to assess potential threats and minimize risks. "Every company today needs effective security policies and procedures, a crisis management plan and a disaster recovery plan," he says. "By taking these proactive steps, businesses can provide a higher level of security for their employees, reduce the risk to their ongoing operations, and minimize their losses in the event of an unexpected catastrophe."

A 10-Point Threat Assessment

To help Latin American companies assess threats and plan countermeasures, kroll has developed a security checklist:

1. Access to the facility.

2. Access within the facility.

3. Exterior premises security.

4. Identification badges for employees, visitors, and contractors.

5. Structural security, such as lighting and closed circuit television monitoring.

6. Crisis planning and emergency response.

7. Threat assessment team training and employee monitoring.

8. Bomb and death threat readiness and reaction plans.

9. Security personnel operating procedures.

10. Intellectual property protection, including electronic data and computer networks.

SOURCE: Kroll Inc.

About Kroll Inc.

Kroll Inc. provides information, analysis, advice and training to help clients reduce their risks, resolve problems and capitalize on opportunities. The New York-based company has more than 55 offices in 18 countries on six continents. Kroll has served Latin America for more than 20 years and has its regional headquarters in Miami, as well as offices in Mexico, Brazil and Argentina.

kroll's five business groups are:

* Business Intelligence and Investigations - Due diligence; internal and criminal investigations; litigation. pre-transaction and competitive intelligence; business counter-intelligence; new market entry evaluations; ethics and compliance monitoring; compliance program consulting, intellectual property protection and counterfeit goods investigations.

* Corporate Services - Executive and vendor screening; employee background checks; substance abuse testing; surveillance services; and disability and workers compensation investigations.

* Financial Services - Forensic accounting and assistance with financial due diligence; fraud investigations and litigation support; asset tracing and recovery; health care compliance, construction risk mitigation; commercial litigation and damage quantification; insurance claim validation; and business valuations, recovery and restructuring.

* Information Security - Emergency incident response; computer and network forensics; information security consulting; Internet monitoring, surveillance and evidence gathering; and information security and computer forensics training.

* Security Services - Travel and political risk information; personal protection services; threat assessment and management programs; security and life safety consulting; crisis management services; anti-terrorism programs; police and public safety consulting; environmental investigation and analysis; and architectural security consulting and design.

For more information, contact Kroll Inc., Latin America Headquarters, 1200 Brickell Ave., 20th Floor. Miami, FL 33131. Phone: [phone]. Website: www.krollworldwide.com