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By SHELLY GARCIA
Staff Reporter
With dangers like kidnapping and terrorism making headlines, Encino-based security firm Pinkerton’s Inc. has launched a new division to provide assistance to multinational companies doing business abroad.
Pinkerton’s new division, dubbed Business Risks International, already has landed a consulting contract with the Philadelphia-based insurance firm Cigna International, which provides coverage for such dangers as terrorism, kidnapping, extortion and product tampering.
“More and more companies are going international, and often they’re sending people overseas to work in areas they’re not familiar with, and they’re dealing with the dangers and uncertainties of doing business around the world,” said David C. Fields, a former U.S. ambassador to Africa and Asia and senior managing director of the new division.
Business Risks International will study a client’s security risks and devise strategies to deal with a host of potential dangers. The division also will run simulations to help its clients practice handling different scenarios, be it a terrorist attack or sabotage.
“Most large corporations have a crisis plan to deal with these things,” Fields said. “But some of the mid-sized companies don’t, and you don’t want to wait until a situation arises to start planning.”
While the bombings of the American embassies in Africa have helped publicize the risks of doing business abroad, Fields said the market for security services has been growing for some time, especially as multinationals have ventured into Third World countries.
Cigna has been insuring against such dangers as kidnapping, extortion and terrorism since 1996.
“Zaire has had two rebellions in less than a year. As various factions move back and forth across the countryside, we recognized this is an area where our services would be of great importance,” said David Samuel, vice president and product line manager for the firm’s financial services division.
“I think if you look at situations such as occurred in Indonesia, where there was severe loss of property and a lot of Western and commercial interests were placed at risk, that situation has the capability of repeating itself in Central Africa, certain Latin American countries and certain parts of Asia,” Samuel said.
