OSAC's Top 5 Security Trends in 2006 for the U.S. Private Sector in the Americas

Contact: Kendal Smith 
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OSAC Says Crime, Abductions, Political Violence Among Growing Threats

Increased violent crime, political violence, cargo security, and a surge in kidnapping were among the top security challenges of 2006 confronting U.S. businesses, nongovernmental organizations and academic institutions operating abroad, according to a year-end analysis by the Overseas Security Advisory Council (OSAC).

"The undisputed top security concern in Latin America and the Caribbean is crime," the OSAC review found, adding that "kidnapping has now become its own cottage industry" in the region.

OSAC analysts also identified politically motivated violence aimed at U.S. corporate interests, as well as indirect violence generated by civil unrest, as significant threats to the U.S. private sector in the Americas.

OSAC also noted that threats to cargo security had caused many U.S. firms to spend heavily on measures to secure their cargo shipments.

"2006 was a defining year for the American private sector abroad," said Doug Allison, a Special Agent with the Department of State's Bureau of Diplomatic Security and Executive Director of OSAC. "The threats from traditional sources - such as crime, terrorism and political instability, as well as from non-traditional, non-routine sources - such as acts of nature and potential global pandemics, have demonstrated that firms must incorporate security and risk management into their core business operations if they are to overcome these threats."

"Corporations that develop an internal culture of resiliency are better prepared than their international competitors to deal with predictable and catastrophic challenges," he said. "Such firms are better able to exploit opportunities in riskier environments and in the aftermath of a major event."

OSAC's regional specialists analyze information and develop informational products on security abroad that are then delivered to its private-sector members, explained Allison.

"By working with our OSAC partners, sharing our analysis, and pushing out our information, we aim to help the U.S. private sector better prepare for, respond to, and recover from the security challenges that may arise in 2007," Allison said.

The following is OSAC's list of the past year's top security challenges to the American private sector in the Americas.

Top 5 Private Sector Security Issues for the Americas Crime & Kidnapping The undisputed top security concern in Latin America and the Caribbean is crime, including day-to-day street crime, carjacking, assault and kidnapping. One notable development is kidnappings. These crimes had previously occurred less frequently and were treated as planned, sophisticated criminal operations but have now become a cottage industry, conducted in a much less targeted, more haphazard manner, with hostage detentions taking much less time, and smaller ransoms being accepted. Political Violence and Civil Unrest For several years, the private sector has been a target for anti-globalization and anti-establishment groups in the region who have conducted regular attacks as invasive as small bombings or as minor as graffiti vandalism. Civil unrest has also become a concern - even when private sector assets are not directly targeted - because unrest can paralyze entire cities, as has occurred in Bolivia, or simply cripple major economic areas, as in Mexico City this past summer. Cargo Security Cargo security is such a large concern for companies in the region that some organizations with high-value cargo now use significant and costly measures to protect cargo. These include multiple car and motorcycle convoys complete with heavily-armed guards and escorts, scouts, GPS tracking and complicated dispatching procedures. Cargo theft in the majority of cases can be traced back to an inside informant within the victimized organization, and highlights the difficulty of conducting thorough background investigations of local employees. Terrorism While local terrorist groups in Latin America seem to be at their weakest point in years, there is ample evidence indicating that terrorism in the region is still a concern. The Colombian rebel group FARC had a slight resurgence in the second half of 2006, committing at least one car bombing in Bogotá that was 10 blocks from a major commercial zone, while Sendero Luminoso continued to be a potential threat to non-governmental organizations working on aid projects in remote areas of Peru. Unreliable State Institutions The policies of Venezuelan President Hugo Chavez continue to create concerns over the validity of contract agreements in Venezuela, as well as rights to private property, more so since the Venezuelan government unilaterally seized a food processing plant belonging to a major U.S. company in September 2005. While Chavez-style policies and his approach to private-sector relations are not likely to spread widely throughout the region, concerns remain that Chavez may find sympathizers to his political platform in countries such as Bolivia, Nicaragua and Ecuador.

About OSAC

The Overseas Security Advisory Council was established in 1985 as a Federal Advisory Committee with a U.S. Government Charter to promote security cooperation between the U.S. Department of State and American business and private sector interests worldwide.

With a constituency of more than 3,500 U.S. companies and other private-sector organizations with overseas interests, OSAC operates a Web site (www.osac.gov), which offers its members the latest in safety- and security-related information, public announcements, warden messages, travel advisories, significant anniversary dates, terrorist group profiles, country crime and safety reports, special topic reports, foreign press reports, and much more.

The OSAC staff includes international security research specialists dedicated solely to serving the U.S. private sector. Additionally, OSAC has a network of 100 country councils around the world that brings together U.S. embassies and consulates with the local U.S. community to share security information.

OSAC is co-chaired by the Director of the Diplomatic Security Service (DSS) and a selected representative of the private sector. The OSAC Executive Director is a Diplomatic Security Special Agent.

About The Bureau of Diplomatic Security

The Bureau of Diplomatic Security is the U.S. Department of State's law enforcement and security arm. The special agents, engineers, and security professionals of the Bureau are responsible for the security of 285 U.S. diplomatic facilities around the world.

In the United States, Diplomatic Security personnel investigate passport and visa fraud, conduct personnel security investigations, and protect the Secretary of State and high-ranking foreign dignitaries and officials visiting the United States. More information about the U.S. Department of State and the Bureau of Diplomatic Security may be obtained at www.state.gov/m/ds.