CREDIT, P OLITIC AL & SECURIT Y RISKS ANALYTICS & CONSULT ANCY · PDF file& SECURIT Y RISKS ANALYTICS & CONSULT ANCY. ... leaving the stability of many states in the balance. ... CPS

Protecting businessand securingopportunity

CREDIT, POLITICAL & SECURITY RISKS ANALYTICS &CONSULTANCY

CREDIT, POLITICAL & SECURITY RISKS CONSULTANCY

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.

Protecting business and securing opportunity

INTRODUCTION

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.

OUR SERVICES

credit, political & security risks aNalytics & coNsultaNcy

Credit & Political Risks

Political Violence & Terrorism

Cyber Terrorism & Extortion

Kidnap, Ransom & Extortion

ANTICIPATE PREVENT RESPOND RECOVER

Country Risk Reports Political policies & proceduresWorld Risk Review®

Threat & risk studies Security policies & procedures

Probablemaximum loss

Cyberresilience

Sunstone™

Cyber Audit

Threat & risk studies

JLT Frontier

JLT Frontier

Executive resilience

Benchm

arking & thought leadership

Insurance Placem

ent

Crisis M

anagement P

lan

Crisis R

esponse

Claim

s & Investigations

Business C

ontinuity Managem

ent

JLT Talos

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 decision-

making. 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.

protecting business and securing opportunity

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.


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.


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.

OUR TECHNOLOGIES

CREDIT, POLITICAL & SECURITY RISKS aNalytics & coNsultaNcy

THREAT & RISK ASSESSMENTS

MANAGEMENT DASHBOARDS & CLAIMS CASE FILES

INCIDENT & CRISIS MANAGEMENT

JLT FRONTIER

SUNSTONETM

WORLD RISK REVIEW®

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.


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.


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 email 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.


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.


SUNSTONETM

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.


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.


For a number of years, the global telecommunications (telecoms) industry has recognised the importanceof emerging markets as an area representing some of the greatest growth opportunities – particularly asrevenue from developed telecoms markets in North America and Western Europe begins to plateau.

RISK FOCUSThe telecoms opportunity in Sub Saharan Africa

CREDIT, POLITICAL & SECURITY RISK BULLETIN APRIL 2015

Telecoms is a growth industry in most

emerging markets, but the opportunity

in sub-Saharan Africa over the next five

years will continue to be of particular

interest to investors. Firstly, booming

population growth and increased levels

of urbanisation will deliver a growing

consumer base, secondly, as sub-

Saharan Africa further embraces data

services there is wider scope for per user

revenue to increase as consumers switch

from 2G voice services to more costly

data options, and thirdly, governments

across sub-Saharan Africa are

increasingly supportive of telecoms

innovation for a plethora of new services

and media offerings – particularly

advancements in the mobile financial

services space.

Inevitably with this scale of opportunity

comes a level of risk; both from an

industry and a country risks perspective.

Those telecoms companies that can

evolve their strategies accordingly will

be set to retain, or improve their market

share, in their territories of operation.

The market leaders will be those that

transition to offering a full suite of data

services above purely 2G voice and

messaging services, and those that shed

assets in a bid to reduce costs and to

free up funds to divert towards product

ARGENTINARISK REPORTCredit, Political and Security Risk June 2015


OUR EXPERIENCE


TERRORISM LONDONA 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 YORKAn 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.


KIDNAP FOR RANSOM AFRICAAn 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 AUSTRALIAA 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.

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 URGENTPROBLEM 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.

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 anappropriate third party who will be able to help if this is your requirement.

WHAT HAPPENS NEXT?

OURCONSULTANCYBENEFITS

The ability to

demonstrate robust

corporate governance

meeting ‘duty of care’

responsibilities

Improve resilience to

low probability/high

consequence events

Increase confidence

in managing and

responding to

complex risks

JLT Specialty LimitedThe St Botolph Building138 HoundsditchLondon EC3A 7AW

www.jltspecialty.com

Lloyd’s Broker. Authorised and regulated by the FinancialConduct Authority. A member of the Jardine Lloyd ThompsonGroup. Registered Office: The St Botolph Building, 138 Houndsditch, London EC3A 7AW. Registered in England No. 01536540. VAT No. 244 2321 96.

© October 2015 269612

CONTACT

CHRIS HOLT MBEPartner, Head of CPS Consulting

+44 207 886 5423

[email protected]

To find out more about the teamgo to www.jlt-talos.com

Documents

CREDIT, P OLITIC AL & SECURIT Y RISKS ANALYTICS & CONSULT ANCY · PDF file& SECURIT Y RISKS ANALYTICS & CONSULT ANCY. ... leaving the stability of many states in the balance. ... CPS