1 CREDIT, POLITICAL & SECURITY RISKS ANALYTICS & CONSULTANCY Protecting business and securing opportunity
2 CREDIT, POLITICAL & SECURITY RISKS CONSULTANCY
3 Protecting business and securing opportunity INTRODUCTION Political risks, security threats and considerable economic uncertainty means that the business environment has rarely felt more volatile. We have seen the emergence of new non-state actors in the Middle East and Africa as part of the global expansion of extremist movements, leaving the stability of many states in the balance. Global economic growth remains tarnished by underlying debt, leading to erratic, fickle policymaking that is difficult to plan for. The end of the commodities supercycle means that many countries lacking true economic diversification now face upheaval. With greater risk volatility there is always significant business opportunity, however, investors must continually challenge their perceptions of country and economic risk if they are to secure opportunity. Commercial success depends upon identifying and taking the right risks. Yet in the context of increasing levels of political and economic complexity, organisations are required to demonstrate that they understand risk and are adequately protecting their people, assets, data, contracts and brand. Political risks, terrorism, cyber risks and kidnap for ransom can generate direct impacts on people, assets and operations, and have consequences for brand and reputation. Recognising that brokers need to offer advice that extends beyond which insurance product to buy, JLT Specialty built an in-house consultancy team. We bring perspective to risk, helping our clients gain clarity and secure opportunity.
4 credit, political & security risks analytics & consultancy OUR SERVICES We deliver a range of consulting services using our own robust technology. With a focus on understanding risk, we have expertise in quantifying and qualifying political risk, political violence, cyber risk, kidnap and travel safety. Using ground-breaking modelling and rating tools, our consultants help our clients anticipate, prevent, respond and where necessary recover from a crisis. ANTICIPATE PREVENT RESPOND RECOVER Credit & Political Risks Political Violence & Terrorism Cyber Terrorism & Extortion JLT Talos Country Risk Reports World Risk Review Threat & risk studies Probable maximum loss Sunstone Cyber Audit Benchmarking & thought leadership Political policies & procedures Security policies & procedures Cyber resilience Insurance Placement Crisis Management Plan Crisis Response Claims & Investigations Business Continuity Management Kidnap, Ransom & Extortion Threat & risk studies JLT Frontier JLT Frontier Executive resilience
5 protecting business and securing opportunity ANTICIPATE SERVICES Threat and risk studies to determine people, asset, contract and brand exposures. Clients can use this service to analyse risks to employees, risks of contractual agreement repudiation by a host government and reputational risks following a range of incident scenarios. Country risk reports and specific research to inform decisionmaking. Using our country risk ratings tool, World Risk Review, we can help clients better understand their exposure to a wide range of risks by providing in depth qualitative, bespoke reports that examines a client s exposure across the trading, investment and security environments, including expropriation, contractual risks, currency risks, legal & regulatory risks and SRCC, war and terrorism. Probable maximum loss studies to underpin risk transfer across a range of perils. Using our terrorism modelling tool, Sunstone, we can model PMLs for assets exposed to terrorism and SRCC. Our terrorism modelling takes into account over 40 distinct attack types, ranging from lone wolf attacks, through to large scale chemical, biological, radiological and nuclear (CBRN) attacks. Our studies can also examine aggravating/mitigating factors and conduct consequence/likelihood analysis.
6 credit, political & security risks analytics & consultancy PREVENT SERVICES JLT Talos our client portal with a range of technology solutions and data, which is fully configurable. Strategic security consulting including organisational resilience reviews. Companies may understand the financial and operational impact of a security incident on their business, but may not know how to mitigate the risks. We can conduct resilience reviews to benchmark performance and to test assumptions about the level of preparedness within the company. The development of crisis management capacity, both in preparing plans and people. We can help our clients write and disseminate comprehensive crisis management plans for a range of crises, ranging from terrorist attacks, to hijacks, to missing airplanes, and kidnaps. We can also help clients shape plans around protecting their brand and reputation. Specific solutions for managing risks associated with senior executives or high net worths (HNW). HNWs and senior executives have unique risk profiles particularly in respect of kidnap. We can help these individuals better understand and manage the risks to themselves and their families. Safe travel management plans and design of solutions to meet duty of care obligations.
7 protecting business and securing opportunity RESPOND SERVICES CPS Consulting offer response consulting services at a strategic level to support our clients in facilitating an understanding of third party response consultants that will be working for the client at a purely operational/field level. We work on retainer for a number of clients on this basis. We can advise clients on who would be the most appropriate security consultancy team to utilise in the case of a kidnap, terrorist attack, war and civil war scenario and a range of other incidents. RECOVER SERVICES Post incident investigations and post incident crisis management support. We can help our clients, post incident, analyse their response to the crisis, and provide advice and develop plans about how to mitigate and manage such risks in the future. This support can also include working to rebuild brand and reputation, in respect of how to manage public relations, and internal communications to employees, stakeholders and customers. As such, CPS Consulting are able to provide a strategic bridge across all four columns of crisis management, with in depth support on Anticipate, Prevent and Recovery.
8 CREDIT, POLITICAL & SECURITY RISKS analytics & consultancy OUR TECHNOLOGIES JLT TALOS JLT Talos is our client portal; providing a range of technology solutions and data that can be configured to meet your needs. Clients can select the modules they need to support their business and manage a range of risks, including political risk, political violence, terrorism, cyber, kidnap, and travel safety. THREAT & RISK ASSESSMENTS MANAGEMENT DASHBOARDS & CLAIMS CASE FILES INCIDENT & CRISIS MANAGEMENT JLT FRONTIER SUNSTONE TM WORLD RISK REVIEW
9 Protecting business and securing opportunity THREAT & RISK ASSESSMENTS Clients can use JLT Talos to upload and manage threat and risk assessments for assets across the portfolio. Each asset can be mapped with a separate risk register profile page which features asset specific risk profiles and ratings, as configured by the client, the ability to run incident monitoring, and provides a document repository for the client or external vendor risk assessments, and insurance documentation.
10 credit, political & security risks analytics & consultancy MANAGEMENT DASHBOARDS & CLAIMS CASE FILES A high level dashboard can be configured to give management an instant view of the company s risk profile and the latest incidents uploaded by their personnel either in-country, or at headquarters. This provides one version of the truth for users. All of the features from JLT Talos are ready for exporting to PDF, to build claims case files should the client wish to submit a claim.
11 protecting business and securing opportunity INCIDENT & CRISIS MANAGEMENT Clients can use JLT Talos to alert employees both up and down communication cascades from C-Suite to local teams, or vice versa. Clients can also use the system s communications logging tool to keep all relevant decision-makers informed and restrict access where appropriate. User groups can be set up in advance to restrict access where appropriate, and crucially, users do not need to be logged in to JLT Talos to receive the system s and SMS alerts, or to reply back to the system. JLT can help migrate your existing Crisis Management plans onto JLT Talos, to create clear crisis workflows before an incident occurs.
12 credit, political & security risks analytics & consultancy JLT FRONTIER JLT Frontier allows clients to better understand global safe travel by providing up-to-the-minute country risk feeds and travel risk information for 250 countries and territories. Advanced levels of subscription are designed to allow clients to manage their travelling employees exposure to risk. The system allows those with responsibility for personnel safety to track when and where each employee or contractor is travelling and alerts both the organisation and the traveller when there is a change in that country s risk environment. Alerts are provided covering security, health, transportation, communications and environment risks and advice on how to stay safe in respect of kidnapping and crime risks.
13 protecting business and securing opportunity SUNSTONE TM Designed and developed by JLT, insurance industry and terrorism experts, Sunstone narrows the gap between the perception of terrorism risk and reality and sets a new standard in terrorism modelling. In response to the evolving nature of terrorism, Sunstone uses an unparalleled spectrum of attack types, historical incidents and target data to identify and quantify accumulation, concentration and portfolio risk with unprecedented granularity and allows clients to visualise their exposure. In turn, this enables them to identify and secure commercial opportunity.
14 CREDIT, POLITICAL & SECURITY RISKS analytics & consultancy WORLD RISK REVIEW World Risk Review is a country risk ratings tool that provides risk ratings across 9 different perils for 198 countries. We developed World Risk Review in 2007 to meet client demands for a more comprehensive country risk assessment tool. At the heart of the tool are our ratings; generated by a proprietary, algorithm-based modelling system incorporating 60 sources of data. Our clients use these ratings, and our country analysis, to benchmark risk across a portfolio. The ratings and the supporting analysis deliver, quickly and easily, an understanding of political risk in any given country. RISK FOCUS CREDIT, POLITICAL & SECURITY RISK BULLETIN APRIL 2015 The telecoms opportunity in Sub Saharan Africa For a number of years, the global telecommunications (telecoms) industry has recognised the importance of emerging markets as an area representing some of the greatest growth opportunities particularly as revenue from developed telecoms markets in North America and Western Europe begins to plateau. ARGENTINA RISK REPORT Credit, Political and Security Risk June 2015 Telecoms is a growth industry in most from 2G voice services to more costly industry and a country risks perspective. emerging markets, but the opportunity data options, and thirdly, governments Those telecoms companies that can in sub-saharan Africa over the next five across sub-saharan Africa are evolve their strategies accordingly will years will continue to be of particular increasingly supportive of telecoms be set to retain, or improve their market interest to investors. Firstly, booming innovation for a plethora of new services share, in their territories of operation. population growth and increased levels and media offerings particularly The market leaders will be those that of urbanisation will deliver a growing advancements in the mobile financial transition to offering a full suite of data consumer base, secondly, as sub- services space. services above purely 2G voice and Saharan Africa further embraces data messaging services, and those that shed Inevitably with this scale of opportunity services there is wider scope for per user assets in a bid to reduce costs and to comes a level of risk; both from an revenue to increase as consumers switch free up funds to divert towards product
15 Protecting business and securing opportunity
16 CREDIT, POLITICAL & SECURITY RISKS analytics & consultancy OUR EXPERIENCE TERRORISM LONDON A major financial institution wanted to understand their exposure to terrorism at their UK trading operation. We produced a probable maximum loss (PML) study determining property damage, business interruption and employee exposures to a range of scenarios. The PML was used to inform purchasing limits on their risk transfer. SAFE TRAVEL NEW YORK An international TV News organisation wanted to improve the way they managed stories in hostile environments. We visited their high-risk operations to understand their specific needs and then rewrote their global travel and crisis management policies and procedures. We then delivered crisis management rehearsals for their global and regional leadership teams.
17 Protecting business and securing opportunity KIDNAP FOR RANSOM AFRICA An African focused investment operation wanted to review their exposure to kidnap for ransom risks. We conducted a rapid analysis of their operations and then worked with the risk and security departments to refine their corporate governance arrangements. We then ran a tender process to allow the client to select an appropriate third party response consultant. POLITICAL RISKS AUSTRALIA A regional construction company was seeking a more sophisticated way to consider investment and operational risks across South East Asia. We produced a model for the client to use internally that weighs investment decisions based on a range of risk factors. We keep this model updated with contemporary data on behalf of the client.
18 WHAT HAPPENS NEXT? CONFIDENTIALITY We understand that choosing a consultant to work with on issues that are sensitive, with potentially catastrophic impacts, is an important decision. Maintaining client confidentiality is critical to the maintenance of our reputation and we take this extremely seriously. We have specific measures to protect the identity of the clients we work with and always determine who within your organisation you are happy for us to communicate with. IF YOU HAVE AN URGENT PROBLEM Please contact one of our specialists immediately and we will assist. Depending on the nature of your relationship with JLT we may need to promptly establish a confidentiality and non-disclosure agreement. OUR CONSULTANCY BENEFITS The ability to demonstrate robust corporate governance meeting duty of care responsibilities Improve resilience to low probability/high consequence events We may also need to conduct some rapid background checks and sign a short agreement to ensure that we are able to provide you with advice. We are not primarily established as a crisis response practice, but we are often able to assist in connecting you with an appropriate third party who will be able to help if this is your requirement. Increase confidence in managing and responding to complex risks
20 CONTACT CHRIS HOLT MBE Partner, Head of CPS Consulting To find out more about the team go to JLT Specialty Limited The St Botolph Building 138 Houndsditch London EC3A 7AW Lloyd s Broker. Authorised and regulated by the Financial Conduct Authority. A member of the Jardine Lloyd Thompson Group. Registered Office: The St Botolph Building, 138 Houndsditch, London EC3A 7AW. Registered in England No VAT No October