Risk management or loss-control measures a company can take to mitigate the effects of a terrorist event vary a great deal depending on the geographic location, what you do as a business, and the industry you're in, says Ben Tucker, Head of Terrorism and Political Violence for XL U.S.

XL Group launched a new Crisis Management team in September, which focuses on Terrorism, Political Violence and Kidnap, Ransom & Extortion.

“I've seen clients over time take different approaches. For example, a risk management approach in a hotel in the Middle East vs. a hotel in the U.S.,” Tucker says.

Middle Eastern hospitality venues have some “fairly active” loss control measures such as luggage screening at hotels, he says. In the U.S. there's not quite that level of security. “But in the U.S., security around travel areas and metro systems is quite high.”

Energy- or chemical-type exposures vary depending on country, he adds.

“Clients do spend quite a lot of time thinking about this and following terrorist and natural catastrophe events,” Tucker says. “Companies need to be prepared. That goes all the way through to management.”

Every company needs to have a crisis management plan for all the people involved in an operation, from the hotel manager in Cairo, to the CFO and treasurer of the hotel company in the U.S.

“There needs to be a clear communication plan all the way through that chain of command so they can make the right choice,” says Tucker.

He calls that the “invisible crisis management” within a company.

Since 9/11, loss control efforts in Manhattan have surfaced in new building materials, from including more dense types of concrete being used, brass walls, lobby doors being designed to thwart unwarranted access, and bulletproof glass. Even access to building deliveries have changed.

And while the most noticeable changes have occurred at larger skyscrapers and iconic buildings, Tucker says, improved security has become commonplace.

Special Reports /

Risk Overseas: Loss Control Differs from One Country to Another

Related Stories

Recommended For You