Emerging Markets, Threats and the Business Community Response

More and more companies are investing in emerging markets where there are significant opportunities for rewards. Yet world events of and since 11 Sept 2001 have provided a constant reminder that these rewards can come at a price - whether at home or abroad.

The risks to staff working in emerging markets are not limited to terrorism. Indeed, it is important not to exaggerate the extent to which this crime is a problem. Staff face a spectrum of security risks from kidnapping, extortion and violent attack to petty street crime and health problems. The risks are caused by political instability, state failings, weak infrastructure, social tension, mass inequalities, under-development and the inadequacy and even absence of the rule of law. In the light of the ongoing conflicts around the world it is clear the organisations wishing to operate overseas may find themselves more susceptible to problems.

It is therefore alarming that the response of the business community has been patchy. Despite the increased awareness of potential threats by many there is still a large percentage of the business community that is doing little or nothing. Surveys suggest less than half of businesses had Business Continuity plans in place and even less are estimated to actually train their staff.

This lack of activity puts lives at risk and it’s happening for three reasons: a legal vacuum around issues of corporate personal security overseas; the lack of a convincing business case to support additional resources to protect personnel; and finally a lack of publically available information - as opposed to commercial information sold by security companies.

A major push to increase the amount of information available in the public domain and to ensure details are collated from companies and governments to give a better understanding of the impact of security threats on companies and their staff around the world will help to build a stronger business case for companies operating in emerging markets.

David Mackay touches on the subject of information sharing between private and public sectors in his article "Joint Operation", as seen in the June 2008 edition of INTERSEC, a publication of Defence International Group.