Time to plan for potential spread of unrest in Middle East

While many international businesses with interests in Egypt have just gone through the experience of securing or evacuating their staff from the country, Aon Risk Solutions, the global risk management business of Aon Corporation, is advising companies to begin planning now for the effects of any potential spread of unrest in the region.

Throughout the crisis, Aon’s Crisis Management team, which specialises in insurance brokerage and risk management for incidents such as terrorism, kidnap and political risk, has been approached for help by companies who thought they had effective plans in place, but because so many other firms were looking to implement their plans at the same time, found there were simply no resources available to execute the plans effectively.

Steyn McDowall, Regional Director of Crisis Management at Aon South Africa commented, “One can never rule out the possibility of similar civil uprisings occurring in other countries in the region. Companies operating in high risk countries must therefore make sure their scenario planning covers ‘worst case’ modeling. Even the best prepared company can run into trouble when they have to evacuate staff in a hurry – those who aren’t prepared at all really suffer.

“South African companies with branches and project teams abroad – on African soil or any other continent – have a duty of care to their employees and should continually scan the international news wires for telltale signs of where future ‘flashpoints’ might develop.”

When planning for this kind of crisis, Aon suggests:

· Always have good, up to date information: this includes both the people on the ground and the people in head office. Open source information such as television news, newswires and social media are invaluable, as are specialist sources such as security analyst firms.

· Have a worst case plan: have a robust, tested evacuation plan in place, keeping in mind that other firms will be having the same idea.

· Actively manage exposure to risk: on an hour-by-hour basis, working with the people on the ground, establish just what kind of risks are acceptable to the firm. For example, is it acceptable for an employee to try to make it to the airport, or should they sit tight in their accommodation?

· Ensure that the employees sent to work in a foreign country are trained and experienced: safety comes down to lots of small decisions, and often these decisions are arrived at based on the of the individual experience or lack-thereof.

· The ultimate decision to evacuate rests with head office: The individual on the ground can lose sight of the overall picture, and become emotionally involved. Leave the ultimate decision to leave or stay with someone oustide the situation.

McDowall continued, “there is a tendency to defer the decision whether or not to remain in a ‘hot spot’ to the employee. But employers must remember the employees’ decision, and the consequences of such decision, will ultimately vest with them. The potentialconflict is clearly demonstrated if one considers a foreign press correspondent who wants to remain in a conflict zone regardless of the dangers. An organization must be prepared to overrule their employees in the even the risk becomes too high.”

“Dealing with regime change, military coups or terrorist attacks is way outside the normal operating parameter of most South African firms. Companies should consult with one of Aon’s international risk divisions prior to establishing a presence offshore, especially if they are expanding into high risk countries. Making sure all eventualities are covered is a safer bet than simply relying on an over-the-counter travel insurance policy to kick in.”