A glance through recent headlines reinforces that the threat of kidnap for ransom is more viable than ever. Since the dramatic rescue of an American teacher and a Danish man kidnapped by Somalis on January 25th, the issue of kidnap and ransom has been at the forefront of media focus. Splashed across front pages are alarming, real-life scenarios… and those are just the situations that are made public. Yan Bui, K&R Account Executive at Clements Worldwide, distills this information overload into the five most crucial aspects about the dangers of K&R in 2012.

Instances of reported kidnappings are at record high. 

According to Control Risks Group Ltd, an international consulting firm, it is estimated that kidnappers globally accrue more than $500 million each year – and this figure is rising. Fueling this corrupt industry is the convergence of continued social unrest and a weak global economy. Although data varies, estimates indicate there were anywhere from 12,500 to 25,000 kidnappings worldwide between 2010 and 2011. Even more alarming, these figures of reported kidnappings account for only a fraction of the total: on average, only 10% to 20% are actually recorded.

Kidnap occurrences are no longer limited to specific industries.

Kidnapping has evolved into an evident danger with the potential to negatively impact any business or other entity that work with, deal, supply, sell or otherwise interact with counterparts or subsidiaries in foreign countries. Industries traditionally affected by K&R include financial, oil, gas, mining, telecommunications and pharmaceuticals. However, today the risk of kidnap affects a much broader range of sectors, such as religious organizations, schools and universities, medical facilities, and non-governmental organizations (NGOs).

Kidnap “hotspots” change year to year.

Anyone can be the target of a kidnapping.

Kidnap victims are not confined to millionaires and their families, or to business executives from large international companies. Thousands of kidnapping incidents are said to involve employees with salaries averaging less than $3000 per month. From corporate executives to humanitarian workers, employees of organizations at all levels must be cognizant of this serious potential harm and take special precaution.

A K&R policy covers much more than the cost of ransom.

Costs associated with a kidnap for ransom incident can be far-reaching and extremely expensive. K&R policies cover much more than ransom monies, including the costs associated with: an experienced crisis team, business interruption, rest and rehabilitation, travel costs, legal and public relations counsel, employee salaries, and any other liabilities resulting from a kidnap incident.

While the scenario of kidnap for ransom is unpleasant to consider, there are too many examples in the media to ignore the reality of this danger. Get protection in the event of the unthinkable- contact Yan Bui directly at ybui@clements.com for a full assessment of your overall risk management plan.

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