Pre-emptive Strike

October 5, 2007

Pre-emptive Strike - By Mitch Gitter , Hannah Shaw Grove - 10/1/2007

 

 

Personal security has emerged as a top concern among the wealthy in recent years. Our high-net-worth research reveals that the majority of affluent respondents feel their wealth makes them a target for criminals and opportunists, they fear for their own safety and that of their family and friends, and expect things to worsen with time. This mindset, of course, paints a very bleak picture for the future of the luxury lifestyle favored by the wealthy.

Despite the high level of concern, very few individuals felt the threats to their safety were acute enough to warrant pre-emptive action. Based on a survey of 427 affluent individuals with an average net worth of $14 million, just 17% have crafted a crisis intervention plan of one sort or another (see graphic). It's equally insightful to learn that only 6% of the 71 people with plans had reviewed them for accuracy and applicability with a security professional within the past year. Like estate plans and other important documents that affect the wealthy and the people in their inner circle, crisis intervention plans must reflect current circumstances in order to be effective and actionable.


 

Pre 2The majority of wealthy individuals who realize that they need a crisis intervention plan are those facing a disaster that calls for immediate attention.

In the past, most affluent individuals needing assistance turned to their attorneys for guidance. As more financial advisors expand their practice to address the broader needs of their affluent clientele, however, they too are now receiving these pleas for assistance. Increasingly, it will be your responsibility to help your clients connect with the security experts they need at the time they need it most.

THE CRISIS INTERVENTION PROCESS
Successfully managing a crisis is more than damage control. Security professionals initiate and oversee a multi-step process to help their clients get the swift, effective and lasting resolution they need. While the execution will vary from professional to professional, these six phases will play a role in most crisis intervention efforts.

1. The first phase is Triage, during which the security consultants evaluate the immediate situation, including any associated communication, threats and criminal activities. Based on their findings, they identify and prioritize the actions needed to address the most serious issues first.

2. Containment is achieved by carrying out a series of precisely choreographed actions intended to bring the situation under control and prohibit any further escalation.

3. With the immediate crisis in abeyance, security consultants will begin the more involved process of Assessment. This includes detailed investigations to uncover the genesis of the problem and the potential implications that may create future concerns.

4. When the facts have been gathered, a plan of strategic and tactical Actions is developed to address the broader circumstances that led to and created the crisis.

5. The Implementation of the action plan may occur in a day or over an extended period of time, depending of the particulars of each situation. If the appropriate result is not achieved, the security consultants will need to reassess the situation and validate the facts, assumptions and hypotheses used as the basis of the action plan.

6. The successful containment and resolution of a crisis is rarely the end of a security professional's involvement. After the fact, it is important to take whatever precautions are necessary to limit the likelihood of future security problems. Sometimes part of Follow-Through includes helping the individual or family get the support they need to manage the psychological, and often residual, impact of enduring a crisis.


Going On Offense
Like many things, a crisis can be effectively managed with a systematic process (see sidebar). Sometimes a client will want to take this a step further and "go on offense," as security professionals put it. This means taking a highly proactive and investigative approach to ending a crisis. The degree of offense required obviously varies from case to case, but can include activities as varied as collecting evidence to support a legal claim, tracking and recovering stolen assets, or even using ex-special forces personnel.

Two areas see continued demand for investigative support from high-net-worth clients. The first is asset search and recovery initiatives that rely on forensic accounting and other forms of investigative expertise to deal with the loss of money and property. The other area is litigation, when facts are needed to mount a case. Support for litigation spans both civil and criminal cases and may be as extreme as finding the needed evidence for a murder defense or establishing rights to intellectual property.

It's increasingly common for security consultants to be used in estate litigation cases. Two recent scenarios requiring extensive and creative investigative skills that we are aware of are mirror versions of each other-finding an illegitimate child that was heir to a fortune and exposing the bogus credentials of a self proclaimed heir. In these types of cases, security consultants need a basic understanding of both the high-net-worth world and estate planning in order to be effective.

Abduction cases also benefit from an offensive approach, especially when international borders have been crossed. If a member of a wealthy family is taken while they are outside their country of residence, it presents unique obstacles that can require knowledge of the laws, extradition treaties and any reciprocity arrangements between the two countries. Another situation may involve the illegal transport of a child by an estranged ex-spouse to another country, which carries all the hurdles of the previous scenario and the added complexity of things such as custody arrangements and restraining orders. If a recovery effort is undertaken (in cases where the voluntary return of the child is unlikely), even greater preparation will be needed, as well as an exceptionally well-trained and experienced crisis intervention team of attorneys, investigators, security consultants, psychologists and other field personnel.

Real Crises Need Real Experts
Anyone who has faced a crisis requiring the involvement of law enforcement professionals or security experts knows that it can eclipse all other issues in their lives. In an instant, the pressures of work or the annoyances of everyday living can fade into oblivion, and a person's outlook on life can permanently change. Of course, while greater wealth can fund more elaborate lifestyles, it can also be the cause of equally elaborate problems. So the variety and severity of the crises addressed by security professionals for their wealthy clients is wide-ranging, as evidenced by the following five examples. In each case, a security consultant was retained to correct a specific problem.

In 2002, pirates hijacked a yacht sailing in Caribbean waters. The occupants, a vacationing family, were held on board and tortured physically and sexually while ransom demands were made. A professional was retained to organize the family's rescue.
A business owner's jet was repeatedly vandalized over the course of 18 months in ways that compromised the safety of the vessel and its passengers, were costly to repair and caused unexpected delays to travel plans. The miscreants returned a fifth time, unexpectedly finding the owner's 12-year-old son on board. In their panic, they beat him so severely he suffered permanent nerve damage and hearing loss. Professionals were retained to provide ongoing security for the jet and the owner's family.
Operatives of a slavery ring abducted a young woman in 2006 and transported her to the Far East without knowing she was the eldest child of a prominent, ultra-affluent family with political connections. A professional was retained to find the girl and arrange for her return.
A team of professional thieves targeted the unsupervised daughter of a well-known musician to set up a blackmail scheme in 2001. The group fed the daughter's heroin habit and captured her in a pornographic video, copies of which were sent to the musician. Professionals were retained to ensure the daughter's safety during her stay in rehab and to assist the legal team representing the musician in the extortion case.
A wealthy executive traveling in remote parts of South America was abducted in 2005 by a group of revolutionaries. A professional was retained to find and free the executive.

In each situation, accompanying issues required further action, most of which were not strictly the responsibility of the security professional, the victim or the victim's family. In the case of the hijacked yacht, for instance, the pirates were eventually apprehended and prosecuted for multiple crimes. Similarly, the recovery of the girl sold into white slavery shed unwanted light on the ring and an affiliated child prostitution outfit and both were dismantled.

Understandably, crisis victims often want assurance that the people behind the crimes receive their just deserts-and a desire for revenge is also a common response. While many security consultants remain involved for a period of time after the crisis has been resolved, they are not in the business of retribution. Their job is to resolve crises quickly and effectively, and most will do their best to limit their use of violence and force.

Seasoned security professionals understand the legal and ethical ramifications of their actions and will precisely define the scope of their responsibilities to a potential client. By doing so, they are clear about the role they will play in resolving the issue and the possibility that there will be "loose ends" once the immediate matter has been addressed. It is important for a client and a security specialist to have a common understanding of the crisis intervention process and share each other's moral principles.

Building Your Network
A competent security professional can be a valuable and logical addition to the team of specialists and experts you already have in place to help address the needs of your wealthy clients. Catastrophes call for prompt action, and having a professional alliance in place can help your clients achieve swifter resolution and engender their immeasurable gratitude and loyalty.