Integrated Security Solutions for Financial Institutions

Transcription

1 Integrated Security Solutions for Financial Institutions

2 INVESTMENT IN SECURITY IS A GOOD INVESTMENT Integrated security measures can reduce direct damage by two to twenty times Material damages caused by robberies have reached million amounts, and have recorded a substantial increase in the past two years. Damages in financial institutions account for a large portion of total damages. Individual material damages from robberies may amount to more than 500,000. The number of attacks has significantly increased, while the average loot has decreased, owing i.a. also to increased implementation of security measures, which have become a business standard. Depending on the type of implemented measures and the manner and level of protection, damages may be reduced by 2 to 20 times. Security measures produce multiple effects. The strongest one is deterrence the offender is forced to give up or to search for a more vulnerable target. Early detection and retardation shorten the duration of the attack, thereby reducing its effect. Identification enables subsequent arrest of the offender and partial loss recovery. On occasions when the security measures are able to incorporate all the four functions, the system performance is maximised and damages are drastically reduced. Indirect damages can exceed the direct ones Due to risks from criminal activities, financial institutions are exposed to numerous, direct and indirect damages. Year Total material damage Total material damage from robberies from robberies in Croatia (EUR) in financial institutions in Croatia (EUR) , , , , , , , ,80 I VI , ,19 relationships, employee psychological problems and resulting law suits, loss of reputation, etc. reach levels approximating those of direct damages. Insurers stimulate implementation of security measures There is a growing awareness among insurers of the implication of changed security level on reduction of the risks described above. This is why they are increasingly incorporating in their general terms and conditions the minimum security standards to be implemented by the insured, as well as mechanisms for evaluation of additional protective measures. These terms and conditions are based on experience, long-term monitoring and analysis of statistical data collected on a regular basis, and in a way they are the essence of a prudent management of insurance companies. Insurers grant bonuses for implemented security measures, hence also financial institutions can, by investing on security, save cost of insurance polices for their staff, business and property. Investments pay off Investment in security systems is relatively small compared to other infrastructure systems investment, and is therefore more so justifiable, particularly taking into account the underlying benefits. In addition to already mentioned reduced risks and damages, further positive effects include cost savings in maintenance of protected facilities, longer life cycles, improved analysis and reporting functions, better process management, more effective change management, facilitated training and advancement. There is no doubt that all this improves employee and customer satisfaction and sense of security and eventually results in a better reputation. While direct damages loss of monetary and other valuables and material damage on equipment are clearly identifiable and measurable, indirect damages lost person-hours, lost client

3 NEW TECHNOLOGIES ENABLE EFFICIENT AND COST-EFFECTIVE SECURITY SOLUTIONS Client clerk interaction is a must During the last decade, implementation of new technologies has triggered structural changes in banking industry. Teller operations (cash withdrawals, bill payments, check blankets issuance, salary credits, interest crediting) have simply been relocated from bank branches to clients homes or offices, where they can via the Internet satisfy most of their banking needs, or to ATMs that have no working hours limitations and are available always and everywhere. Such development freed up bank resources for completely new services, and a bank clerk s main job now is to inform the client on the products and services offered, to get information on the client s concrete needs and financial capabilities and to offer to each individual client tailor-made solutions. On the other hand, the openness of the space containing valuables for which many are willing to take risk to get a fast hold of them, puts under question the realisation of the new trends in bank operations. Openness means accessibility to everyone, including those having dishonest intentions, and this can represent a threat to employees and clients personal safety. Security solutions based on new technologies allow openness and safety The new direction of business development dictates an open and comfortable contact with the client. The client wants all the services, at one stop, now and immediately. Such a concept excludes the traditional teller area and physical separation which is beneficial from the security aspects. New technologies enable development of integral solutions weaved into business processes. Digital security systems built in a TCP/IP corporate network are a basis that is easy to implement and simple to upgrade. TCP/IP integrated and centrally monitored surveillance and communication system transmits on-site security information to any distances or locations. Ultra-high resolution cameras and advanced, intelligent algorithms make a solution that is always a step ahead of the offender. It is a self-actuating system that recognises unusual situations and automatically activates defense mechanisms, thereby avoiding intentional and unintentional human errors. Biometrics has become a simple and reliable technology, a powerful tool in recognising and blocking intentional and unintentional errors. Contactless access control does not slow down business processes, but it significantly slows the offender. Main risk decreasing factors (according to J.P. Freeman Co., Inc. market report) 1. Uniformed security guard 2. Remote access digital video surveillance 3. Integrated systems 4. Access control 5. Data protection 6. Anti-intrusion and anti-robbery system International experience digital integration on the rise A survey performed by Focus on Magazine on the sample of 1500 financial institutions in the U.S.A. has shown that financial institutions security managers rank risks they are exposed to in the following order: computer protection, robbery, embezzlement, unauthorised access and burglary. The surveyees have identified digital networked video and integration of various technical protection sub-systems as a solution having strongest impact on the reduction and prevention of the recognised exposure risks. They have also emphasised that crime deterring is the most important segment in crime prevention. The basic trend, that has been existing for years now, continues to be confirmed: security solutions are increasingly manless-oriented. For quite some time now financial institutions have had in place basic security mechanisms anti-intrusion and anti-robbery systems, i.e. time delay locks on safes and vaults. These systems are recently being complemented by video surveillance. In specific circumstances and requirements (thirty to fifty per cent of implementation), special mechanical barriers are combined with access control systems. However, the most important and still the fastest growing is exactly the link between these systems digital integration which grows not only in terms of its implementation share but also in terms of its scope.

4 ROBBERY DOES NOT ONLY HAPPEN TO SOMEONE ELSE Robbery risk doubled in the last five years Violent crimes in financial institutions in recent years have recorded a continuous growth, and the number of bank robberies in the first six months of 2005 has reached the total number of robberies that occurred in In 2002, Croatia was still the safest country in the region, with 24 robberies per 100,000 of population. For the sake of comparison, respective figure for Italy in the same year was 87, for Germany 84, Austria 57, Hungary 40 and Slovenia 30. Alarming is the fact that in 2004 Croatia reached the rate of 35 robberies per 100,000 of population. Year Total number of robberies in Croatia Number of robberies in financial institutions I-VI In order for a crime to occur in the first place, it is necessary for a motivated offender to find a suitable target that is unprotected. There is a lot of evidence that unprotected or poorly protected places are first targets, and that crime moves to unprotected locations. Shift in criminals focus A comparison of frequency indicators of various crime types to which financial institutions in Croatia and EU are exposed reveals that risks are identical. In Croatia, robberies are on top of the list of crimes to which financial institutions are exposed, and their number is continuously growing. They are followed by burglaries, which are currently frequent on ATMs. Big losses occur also due to various forms of vandalism and deliberate damaging of bank facilities and their surrounding. Thefts mostly occur during transportation and transfer of cash. Population is increasingly warned of various forms of card fraud. Risks in EU countries are the same, but are differently ranked card fraud is on the first place, followed by embezzlement, theft, vandalism and burglary, while robberies are on the last place. Domestic financial institutions should therefore be prepared to the similar shift in criminals focus. The offender selects unprotected targets Theories looking for offenders motives in various psychological, social or economic stressors are recently being abandoned. The contemporary Rational Choice Theory has proved that a criminal s decision to commit a specific type of crime is a matter of conscious and free personal decisionmaking based on a weighing of available information. Criminals motivation is not a constant, and it is also not out of control they all the time assess whether the risk they are to be exposed to pays off. Shortly, criminals are continuously performing their own cost/benefit analysis. Criminals decision depends on the power of temptation, internal motivation, risk and consequences perception and on the opportunity, whereby persons or institutions wishing to preserve what belongs to them can efficiently influence only two of the mentioned factors: they can reduce opportunity (Opportunity makes the thief!) and increase risk perception, hence the fear of the consequences. The main sense of crime prevention measures implementation derives from this: reduce opportunity in which someone would decide to take risk (opportunity reduction).

5 LAWS COMMIT THE MOST ENDANGERED Main regulatory documents in Croatia 1. Minimum Security Measures in Handling Cash and Valuables Act 2. Private Security Services Act 3. Fire Protection Act 4. Construction Engineering Act 5. Electronic Signature Act 6. Standardisation Act 7. Data Privacy Protection Act 8. Safey at Work Act 9. Ordinance on the conditions and manner of implementation of technical security systems 10. Ordinance on fire alarm systems 11. Ordinance on the conditions and manner of issuance of the special approval to perform money, securities and valuables securing and accompaniment services 12. Ordinance on preparation of fire and technological explosion hazard assessment 13. Ordinance on categorisation of buildings, structure parts and space into fire hazard categories 14. Ordinance on preparation of security risk assessment 15. Recommendation on video surveillance systems Laws are the Government s tools for providing safety to citizens Since November 2004 the Law on Minimum Security Measures in Handling Cash and Valuables has been in force in Croatia, which imposes on financial institutions implementation of prescribed minimum security measures. Judging from the articles appearing in daily newspapers in connection with multiple robberies during the summer of 2005, that is to say only slightly more than half a year since the enactment of the Law and intensive monitoring of its implementation, a number of financial institutions have failed to implement correctly, or have not implemented at all the minimum security measures. This is why responsible bodies are already contemplating its modification. Excuses are mostly found in the cost of implementation of security measures, inefficiency of prescribed measures, small amounts of material damage incurred, etc. It appears that the true purpose of the Law protection of lives of employees and clients, protection from physical and psychological harm, prevention of hostage extortion situations, enabling criminal prosecution of the offenders has been forgotten. Minimum protection is not enough The Law provides for minimum security measures, but implementation of these on no account means that sufficient security has been implemented. It is important to bear in mind that crime constantly changes and adjusts to the measures we have undertaken for its prevention. Thieves learn, adapt and, taking the path of least resistance, turn to more vulnerable targets. Talking of financial institutions, which are particularly attractive targets for criminals, this means that not for one moment can it be deemed that the job required to protect people and valuables has been completed, or that the implementation of the minimum prescribed measures could eliminate the problem. Protection should be adjusted to risk factors As is the case with other activities, in addition to the laws there is a series of regulations governing the security services profession. These regulations are often referred to as implementation regulations, and this syntagm fairly correctly describes their function they provide for the manner in which certain legal obligations are to be fulfilled, and imposed obligations relate to companies performing certain activities. Regarding technical security, the most important implementation regulation is the Ordinance on the conditions and manner of implementation of technical security systems, which, i.a., provides for the preparation of risk assessment for protected facilities and their classification in one of the six risk categories. Further, for each risk category mandatory security measures are prescribed, ranging from simple mechanical protection by common cylinder locks, through video surveillance and technical protection with local signaling, access control and alarm signal transmission to the Alarm Reporting Centre, to integral protection with a local monitoring station. The most endangered, first risk category facilities, are required to additionally implement protection measures for individual valuables (special safe-boxes, vaults, etc.) and to prepare the Contingency and emergency plan and procedures. Professionals know more With a view to protect interests of technical security systems users, to ensure system functionality and equipment quality, as well as to increase the professional expertise, a number of additional papers have been and are continued to be prepared standards, guidelines, instructions, recommendations. Recommendation on video surveillance systems issued by the Croatian Security Guild is of particular importance to the financial institutions in Croatia, because it defines technical properties of a CCTV system vital parts, depending on its purpose

6 TAILOR-MADE SOLUTIONS FOR FINANCIAL INSTITUTIONS

7 ATMs Money at hand s reach ATMs are in many ways specific compared to other points where money transactions are performed: there are no bank staff involved in financial transactions, no working hours limitations, which makes ATM s available all the time, they are most often dislocated from facilities where money transactions are performed. They can be installed on premises of banks and non-banks, but can also be located outdoors. Burglary is the most common criminal activity on ATM s Specific features result in specific risks to which ATMs are exposed, such as burglary, vandalism and card fraud crimes that are most frequent on ATMs according to statistics. The number of burglaries and attempted burglaries on ATMs in Croatia in recent years is calling for an alarm the number of cases is increasing, as is the material damage. Recently cases of taking away, or attempts to take away an ATM machine itself were recorded, too. In order to prevent the thieves, it is indispensable to additionally anchor the machine into the construction base. Year Number of successful burglaries Number of attempts Damage (EUR) , , , ,12 More and more common on ATMs are cases of various debit and credit card fraud and misuse. In order to protect legitimate cardholders, early in 2005 the Croatian Bank Association described a series of measures to be taken by banks. They are mainly aimed at informing card users (newspaper articles, brochures, instructions on ATM screens) how to detect details on the ATM indicating possible skimming attempt. In ATM operations there is a whole additional series of critical points, which are of particular importance for money loading and maintenance. Minimum protection: anti-burglar system, centralised communication and continuous communication monitoring Minimum Security Measures in Handling Cash and Valuables Act has provided for minimum ATM protection measures in Croatia. The very fact that the law prescribes minimum security measures speaks for itself about ATM risk exposure. According to the Act, ATMs have been classified as third category which means that they money safe door opening alarm signal, and the ATMs communication connection with the communication center must be permanently monitored. Integrated and centralised video surveillance prevents various risks Almost all types of protection can be implemented to secure ATMs - from burglary, card fraud and vandalism. The most important role here plays the mechanical resistance of the machine itself and its anchoring into the construction base. The basic technical security implies installation of an anti-intrusion system that manages local alarm and transmission of the alarm signal to the central communication system. ATM video surveillance is an advanced security solution for high-risk locations, as it enables subsequent reconstruction of the case and offender identification. However, it is much more important that this solution, in addition to burglary, serves to prevent vandalism and card fraud. Integrating the video surveillance with the transaction authorisation system additionally disables card fraud and other forms of fraudulent card usage. If video surveillance is centralised, it enables continuous monitoring of the ATM surrounding, which substantially shortens intervention time in case of detection of critical activities. Physical ATM security means enabling security services team intervention to shorten the duration of the burglary. The higher reliability and speed of communication connection, the more effective physical protection, whereby state-of-the-art digital technologies play an important role. Experience in many countries abroad points to the importance of well designed organisational measures, among which the most important is a consistent compliance with security procedures by money loading.

8 SUB-BRANCH Compact multi-purpose premises A specific feature of a sub-branch situated on small premises is its compactness and multifunctionality. Often there are only two separate rooms (sometimes only one) in which front and back office transactions are performed, with the latter comprising also money storage. The main purpose of small sub-branches is to be as close to the clients and customers as possible, in order to ensure accessibility of services and enhance client acquisition. Small sub-branches are therefore often situated at distant and less frequented locations. One or two employees at the most perform all business. Robbery risks are soaring Specific operating conditions of small sub-branches as described result in specific risks to which such facilities and employees in them are exposed. Robberies are the most frequent crimes, and particular danger lies in the fact that offenders really do not hesitate to harm or even kill a person in order to get hold of the prey. A particular problem is the offenders readiness to take action also for a very small take. Number of robberies in financial institutions Year Banks Post offices Exchange offices Betting shops data not available data not available data not available I-VI Anti-intrusion system is a legal minimum According to the Minimum Security Measures in Handling Cash and Valuables Act, small facilities must be protected by either an anti-intrusion or an anti-robbery system with centralised communication and alarm monitoring, or by continuous video surveillance with the possibility of video recording archiving, whereby each deposit-withdrawal point is mandatory protected by an anti-robbery system extension. It is important to mention that these provisions, in addition to small banking facilities, apply also to exchange offices, Croatian Lottery outlets, betting shops and credit cooperatives. Key prevention principle: increase risk perception for the offender Key function of the prevention measures used in protection of this type of facilities is to ensure as quick as possible alarming of the security services intervention team. Reducing robbery duration time decreases the possibility of harming employees and persons who found themselves on the attacked premises, and shortens the period of their exposure to stress. Application of mechanical protection devices should primarily physically separate the offender from employees and customers, and thus eliminate hostage extortion situations; this can be best done if the offender is identified before entering the premises and stopped at the very entrance. Use of additional measures hindering access to the premises mechanically, e.g. double re-enforced doors, slows the offender. This gives the employee more time to alarm the security services intervention team, or to run to a back room. Additional slow down is possible by using time delay lock safes, which additionally prolong the time to reach the prey. A quality video surveillance system enables identification of the offender, thus increasing his/her risk perception and the fear of punishment. In terms of organisational measures that can discourage the offender from the attack, perhaps the most important thing is to take care never to hold excess cash in working safes. It is also of vital importance to psychologically prepare employees for possible crisis situations, strategies for their prevention and manner of procedure if and when they occur. Professional approach Experience globally shows an exceptional impact of professionally designed and consequently implemented organisational measures on decreasing risks to which financial institutions are exposed. Most important factors affecting their efficiency are support from the top management and professional approach to protection and security issues oriented to permanent monitoring of the changes in the environment (risk level, crime statistics and development, technological novelties).

9 BRANCH Variety of services and functions On bank branch premises it is necessary to bring into balance a whole range of functions which the branch performs from administrative, through the service function to the safe depositing of money and valuables. The same structure houses separate spaces in which customers are serviced in different ways. Service banking space offers retail account services cash and cashless transactions, delivery of check books, cards and similar. In personal banking area customers are serviced in a way to obtain from them enough information to create a custom financial solution for their specific needs. In this area credit agreements are executed, investment and savings products are discussed, etc. Free interaction in this segment between the banker and the client is an essential condition. In the vault area larger amounts of money are deposited, necessary for the uninterrupted branch daily business. In the customer safe-box area, valuables entrusted to the bank for safekeeping are deposited. ATMs are located also in most sub-branches, while more and more often space is dedicated in the branches for the so-called self-service banking. Processing of each of the above-described types of business is demanding and complex. The complexity of the situation is substantially increased by requirements for smooth operations of the IT and administration departments. Numerous functions multiple risks In terms of risk exposure, bank branch is by all means the most complex. Here, almost all riskincreasing factors are concentrated large amounts of money, important information, availability and openness of the space, necessity for accessibility, multiple entrances and exits, access available to a number of mostly unfamiliar persons. There almost is no such risk to which branches are not exposed robbery, vandalism, burglary, theft, embezzlement, card fraud, sabotage, while terrorist threat also shouldn t be neglected. It is important to stress also the increased risk involved in the operations of the transfer and transportation of money and valuables. Critical points and processes need additional protection Pursuant to the Minimum Security Measures in Handling Cash and Valuables Act, bank branches have to be protected by anti-intrusion and anti-robbery systems with centralised communication and alarm monitoring, and permanent video surveillance with possibility of video recordings archiving. Particularly jeopardised places and processes must be additionally secured. Financial institutions critical points Central vaults Vaults Deposit-withdrawal points Money and valuables transportation Money transfer Mandatory protection forms Combine permanent security guard with technical security systems Permanent protection by technical security systems Anti-robbery system with centralised communication and alarm monitoring Armored vehicles, equipped with technical protection systems, telecommunication systems and fire fighting devices, accompanied by at least two security guards Money transfer cassette, accompanied by a security guard Several protection levels, depending on risk assessment In view of the bank branch process complexity and the number of potential risks, their requirements in terms of security measures are truly demanding. In order to accommodate those needs it is necessary to combine all types of protection technical, body, mechanical and organisational. Their integration and centralisation leads to maximisation of security results. Security should start immediately at access routes to the branch, whereby of particular benefit is implementation of video surveillance with advanced algorithms for recognition of unusual events. External perimeter should be mechanically protected by a quality door. Proper protection of the interior perimeter may represent a point of discouragement of the potential offender. It is desirable to enable employees to block the entrance door after a pre-alarm signal from the access or the external perimeter, and it is good to know that computer applications already exist that are able to recognise disguised faces and automatically lock the interior doors. It is already a common practice, but also a mandatory requirement, for public areas used by customers to be protected by anti-robbery and video-surveillance systems. Regarding protection of vault areas, which are at the same time the final target of the offenders, in addition to the implementation of the technical and mechanical security measures, it is of utmost importance to consequently comply with regular security procedures during money transportation and transfer, as well as opening and closing of the facilities.

10 HEADQUARTERS Main regulation governing fire protection: 1. Fire protection Act 2. Construction Building Act 3. Standardisation Act 4. Ordinance on preparation of fire and technological explosion hazard assessment 5. Ordinance on fire alarm systems 6. Ordinance on categorisation of buildings, structure parts and space into fire hazard categories 7. Ordinance on fire protection of catering facilities 8. Ordinance on technical standards for the fire protection of high structures 9. Ordinance on technical standards for the fire protection of warehouses Administrative and executive management function One of the specifics of banking business is the dislocation of bank branches and ATMs where core banking business is performed, from the facilities in which administrative and executive management functions are performed, in order to be nearer to the customers. Management and administrative functions are, as a rule, located in separate office premisies, which, by their very nature, are exposed to risks different from retail business facilities risks. Such facilities differ also in their design and architecture. There is a large number of entrances and exits, floors, stairways, business functions (often organised in a divisional pattern), with a substantial number of people moving around. Also, changes of purpose of individual spaces often take place. Security types and priorities should be adjusted to the processes, architecture and risks, while the security system should be flexible and easy to use; centralisation should be enabled and, in doing all this, care should be taken for the employees and customers to feel secure without any sense of uneasiness. Risks differ substantially from other facilities in which core business functions are performed Risk ranking of a bank s headquarters building and the measures to prevent that risk essentially differ from risk ranking of branches, sub-branches and ATMs. In office buildings that accommodate a large number of persons at one time it is important to predict and prevent situations that can jeopardise their lives and health. This issue concerns primarily natural disasters consequences prevention (flood, fire, earthquake). If anything of this sort happens, it is important to plan in advance how evacuation will be done and how panic will be prevented. Additionally exposed to fire risk are older structures, especially protected cultural monuments, which are often used as bank headquarters. Their outdated infrastructure and installations are not adequate for their current purpose, and for the sake of their preservation it is prohibited to change their appearance or affect the building structure. In such buildings the most important task is to protect the information from unauthorised access and use and the systems used in operating that information from sabotage or diversion. Unauthorised entry and exit from the buildings and unauthorised movement through additionally protected parts of the building are high-risk situations. Thefts of valuables from the buildings as well as break-ins are also a realistic risk. According to the Minimum Security Measures in Handling Cash and Valuables Act, large bank buildings have to be protected by anti-intrusion and anti-robbery systems with centralised communication and alarm monitoring, as well as permanent video surveillance with possibility of video recordings archiving. In case the headquarters building houses a bank vault it should be continuously protected by technical security systems, and, in case of the central vault, this should be secured combining continuous security guard surveillance with technical security systems. Automated monitoring of security procedures implementation A distinctive trend in security approach with respect to big business buildings protection, where information is in security focus, is implementation of access control systems that ensure and monitor application and implementation of security procedures. The value and functionality of information on the status and changes within a technical security system substantially increase through their centralisation on one location, further data analysis and their transmission to communication and/or monitoring centers that can intervene accordingly in the case of burglary or robbery, fire, devices breakdown, etc. Integration enables exchange of information between different systems, which, in turn, results in more reliable system reports on potential emergencies in and around the structure, and enables automatic action. Also, technical security system can send commands to other systems (e.g. shutdown, lighting, etc.).

11 IDEA SOLUTION Fusion of usual business ways, development trends and security solutions A holistic security solution comprises an individual approach to every user who, in a logical and consistent way, needs to connect the safety and security solutions with requirements and trends of its core business. In doing so, it is essential to completely take into account the present condition, thereof primarily: existing obligations towards contracted business partnera and preservation of actual business relations and channels already well-worked operative procedures adopted by the employees previously accepted ways of implementing novelties into business operations safety and security procedures already usual in daily business Sensible linking of all security measures available By enforcing adequate security measures that satisfy our client s special needs, we at Alarm automatika imply much more than simple integration and centralisation of technical security systems. Recognizing and appreciating specific needs of each individual user, IDEA Solution is the total security solution which, in addition to electronic protection itself takes into account also a lot of other application aspects, including organizational measures, education, directing and management, information security, mechanical protection, integration with information communication system (ICT), integration with the facility s electrical infrastructure (BMS), physical protection, centralized remote control and monitoring. To make a Holistic security solution come true, it is necessary to make quality and elaborated integration and centralisation of different systems and measures with existing situation and business trends. Integration of core business systems with security measures can substantially improve both business operations and security. The measures applied must be adapted to the user, integrated into all business systems, expandable, modular, flexible, and scalable. A goal that demanding implies application of specially developed (and permanently updated) software packages that support swift and accurate alarm reporting (TCP/ IP), alarm events video-verification, and integrability of all anti-intrusion and anti-robbery systems used by the client, and that exist in the market. It is equally important that our clients and alarm reporting centres are already using such software, developed at Alarm automatika. Proper security is a need of all involved Depending on the principal s requirements and resources there is a range of efficient techniques for discouraging attacks on financial institutions, which are in line with interest of all involved: bank employees who wish comfortable and safe working conditions, clients who wish a wide array of products and a fast service, financial institutions who wish efficient and cost effective solutions, security guards who wish to offer high quality and long term sustainable and profitable security solutions and the state who wishes to increase security of its citizens. Unique and innovative solution Solutions that we recommend are based on global information, our own knowledge and experience as well as on results achieved in the protection of financial institutions. One does not improvise in security issues security represents the totality of measures customized to suit the protected facility and operations risks.

12 FROM IDEA TO REALIZATION Nothing is as powerful as the IDEA whose time has ripen Key role in the creation of any IDEA Solution security product belongs to Alarm automatika d.o.o. employees in the first place, who have, owing to their skills and capabilities, self-assertion drive, enthusiasm and dedication succeeded in making the company recognizable and successful, and have thus become the company s most valuable asset. Currently over sixty percent of the staff hold a university degree, and their degree theses speak in favor of their capability to keep pace with the advancement of the technical protection industry from closed circuit television (CCTV) and fire alarm systems to automation and centralization. Commitment to acquisition of new knowledge and permanent training of employees specific skills is a cornerstone of Alarm automatika corporate culture, and the annual education budget for domestic and international training amounts to about 5% of total sales. Regular visits to industry s most renowned international fairs, participation in seminars given by leading international alarm industry consultants and permanent education in cooperation with equipment suppliers support us in designing real tailor made solutions, while additional schooling through post graduate university studies, in various business schools, courses and seminars contributes to our performance. Education and certification are an important precondition for a successful implementation of each integrated security solution Doing business in a world of immediate availability of unlimited information portfolio, we strive not only to build our know-how into the new and competitive products and services, but to transfer it to our business partners, users and the wider community, by organizing seminars and training courses, publishing professional literature and popularization through cooperation with paper and electronic media. Our IDEA Certified Profesional program is designed to broaden the professional expertise of our partners, licensed security services providers. The program consists of a series of courses and workshops where the participants get acquainted with various components of the IDEA Tailor- Made Security Solutions offer and master the skills necessary for the implementation of more sophisticated security systems. A network of competent partners Apart from the fact that they can at all times find and get more than 3,500 items from more than 50 world renown suppliers, many companies have bound to us also for the full marketing and technical support and education possibility. Partner companies that employ several people who have gone through the whole IDEA Certified Professiona educational programme, that are willing to educate themselves on new technologies, and that have formalised their long-term co-operation with us through business venture contracts, thus acquire the status of IDEA Certified Partner. Only such a company possesses sufficient knowledge, experience and other resources required for the implementation of an individual IDEA Solution security product, hence this type of cooperation is a prerequisite for joint faster development and better performance by both, the partner and Alarm automatika. Presently, there is more than twenty companies in Croatia that are, through the described programme, educated and certified to perform the most complex solution implementations. Self-realization and creativity Such an environment of permanent acquiring new knowledge and exchange of experience affects favorably the possibility of individual development and self-assertion of each employee, but also of each individual partner, customer or user, leaving them in achievement of their professional goals full freedom to strengthen the common striving to improve the quality of life and business by a creative contribution of their own.

13 Alarm automatika d.o.o., Rijeka Dražice 123/c (Zamet), Rijeka, Croatia Tel (0) , Fax: (0) Alarm automatika d.o.o., Zagreb Office Martićeva 73/VI, Zagreb, Croatia Tel (0) , Fax: (0) Alarm automatika d.o.o., Split Office Poljička cesta 11, Split, Croatia Tel (0) , Fax: (0)