Natural Resources and Mining

 

 

https://sm.asisonline.org/Pages/Resilience-Trends.aspxResilience TrendsGP0|#28ae3eb9-d865-484b-ac9f-3dfacb4ce997;L0|#028ae3eb9-d865-484b-ac9f-3dfacb4ce997|Strategic Security;GTSet|#8accba12-4830-47cd-9299-2b34a43444652016-09-01T04:00:00Zhttps://adminsm.asisonline.org/pages/mark-tarallo.aspx, Mark Tarallo<p>​<span style="line-height:1.5em;">“Thousands have lived without love, not one without water,” poet W.H. Auden famously said. In many countries, enjoying a safe and secure water supply is something most take for granted. The United States, for example, has had an “unrivalled tradition” of low-cost, universal access to drinking water, says Robert Glennon, a water policy expert at the University of Arizona and author of Unquenchable: America’s Water Crisis and What to Do About It. In actuality, a safe and secure water supply is never a given, and there are signs that the recent water crisis in Flint, Michigan (covered in Security Management’s May issue), may be a canary in the coal mine for the future of America’s water. The U.S. water and wastewater system is in urgent need of repair and replacement; some of the piping dates back to the Civil War era, experts say. But federal and state funding appropriations have been insufficient for keeping water supply infrastructure in good repair.</span></p><p>“For years, there’s been a general inadequacy in funding,” Glennon says.  As recent proof, Glennon cites the American Recovery and Reinvestment Act of 2009, commonly known as President Barack Obama’s $787 billion stimulus package. “A small fraction of that, less than 1 percent, was devoted to water and wastewater,” he explains.</p><p>The American Water Works Association has estimated that repairing the million-plus miles of water mains across the country, and expanding that infrastructure so that it can adequately serve the country’s growing population, could cost up to $1 trillion over the next 25 years. The U.S. Environmental Protection Agency (EPA) has a lower estimate: roughly $330 billion over 20 years.</p><p>Both of these estimates dwarf the existing $1.38 billion that state and local governments are spending annually on drinking water and wastewater infrastructure, according to statistics from the American Society of Civil Engineers (ASCE). (Using a comparable 20-year time frame, the ASCE estimate comes to roughly $28 billion, or only about 8 percent of the EPA’s estimate of needed funding.) </p><p> Besides inadequate funding for repair, demand is growing, not only from an increasing population but from high-tech industries. Large corporations with cloud computing operations occupy enormous industrial facilities that are air conditioned. “This requires a heck of a lot of water,” Glennon says. </p><p>In addition, environmental factors pose challenges to a secure U.S. water supply. In states like Florida, rising sea levels are pushing into coastal aquifers and causing saltwater intrusion, making the aquifers more saline and problematic for human consumption. </p><p>Worldwide, a possible future water crisis is a problem alarming many, in part because of its potentially disastrous cascading effects on the global economy. A survey released by the 2016 Global Economic Forum found that a water crisis is the top concern for business leaders over the next 10 years. Further in the future, the global water situation continues to look grim, by several measures. By 2030, a stable supply of good quality fresh water can no longer be guaranteed in many regions, and a 40 percent global shortfall in supply is expected, according to the Carbon Disclosure Program’s (CDP) Water Program.</p><p>By 2050, an inadequate supply of water could reduce economic growth in some countries by as much as 6 percent of GDP, “sending them into sustained negative growth,” says a recent World Bank report, High and Dry: Climate Change, Water, and the Economy. Regions facing this risk include India, China, the Middle East, and much of Africa. Water insecurity could also ramp up the risk of conflict and instability—droughts can spur a spike in food prices, which can in turn cause civil unrest and increase migration. While 2050 might seem quite far in the future, water-related challenges are happening right now. The World Bank report also found that 1.6 billion people currently live in nations that are subject to water scarcity, and that number could double over the next two decades.</p><p>Moreover, a water crisis can have a devastating effect on the global economy. The CDP’s Water Program estimates that, if current status quo water management policies are sustained worldwide, $63 trillion in assets will be put at risk. Such economic challenges are highlighting the importance of improved water governance, which includes an emphasis on positioning the water supply so that it is more resilient in the face of challenges due to demand, the environment, and other factors, says Hart Brown, who leads the organizational resilience practice at HUB International and is a member of the ASIS International Crisis Management and Business Continuity Council.</p><p>“In light of the case in Flint, as well as droughts, floods, and the potential competition for water resources, improved water governance is being brought to the forefront of many conversations,” Brown says. When resilience enters the conversation, the challenge becomes creating an “adaptive capacity,” or “diversification of the water and sanitation systems.” </p><p>However, there is no one resilience model that can be successfully replicated for all water supply and treatment plants, because each system is a unique combination of human, technological, and environmental factors, Brown explains. In the United States, a wide range of water systems could potentially benefit from resiliency upgrades, he says. Those include conventional utility piped water supply systems; dug wells and tube wells (wells in which a long pipe is bored into an underground aquifer); rainwater harvesting operations; unprotected water sources such as rivers and streams; and cooperative developments in areas that share transboundary water resources.</p><p> Improving the resiliency of any water system takes investment, but just as important, it takes sound science, Brown says. </p><p>“Water managers need access to the best available scientific information and water risk assessments to support these long-term water-related decisions, including the ability to forecast and plan for important capital expenditures,” he explains.  Businesses also have a role to play, especially those that rely on water for production, manufacturing, agriculture, and power generation purposes, he adds. Some businesses are already being strategic in this area; they consider shared responsibility and sustainability of water systems a core function. </p><p>“Partnerships with local communities are important in the ability to overcome shared water risks,” Brown says. </p><p>Globally, improved resiliency and water management practices, if given sufficient investment, have the potential to pay tremendous dividends, the World Bank report argues. It calls for a three-point approach: improving resiliency to extreme weather events by improving storage capacities, reusing facilities, and other tools; optimizing the use of water through better planning and incentives; and expansion of the water supply, where appropriate, through recycling, desalination, and damns.</p><p>“While adopting policy reforms and investments will be demanding, the costs of inaction are far higher. The future will be thirsty and uncertain,” the report says.</p>

Natural Resources and Mining

 

 

https://sm.asisonline.org/Pages/Resilience-Trends.aspx2016-09-01T04:00:00ZResilience Trends
https://sm.asisonline.org/Pages/Required-License-to-Operate.aspx2015-02-01T05:00:00ZRequired: License to Operate
https://sm.asisonline.org/Pages/chemical-facilities-tackle-explosive-problem-0013191.aspx2014-03-01T05:00:00ZChemical Facilities Tackle an Explosive Problem
https://sm.asisonline.org/migration/Pages/opposites-agree-data-minings-importance-and-need-controls-007956.aspx2010-12-09T05:00:00ZOpposites Agree on Data Mining's Importance and the Need for Controls
https://sm.asisonline.org/Pages/The-Golden-Rule.aspx2010-05-01T04:00:00ZThe Golden Rule
https://sm.asisonline.org/Pages/lawmakers-hold-hearing-whistleblower-bill-006893.aspx2010-03-26T04:00:00ZLawmakers Hold Hearing on Whistleblower Bill
https://sm.asisonline.org/Pages/legislation-would-provide-security-fix-006849.aspx2010-03-04T05:00:00ZLegislation Would Provide Security Fix
https://sm.asisonline.org/Pages/Race-for-Iraq-Oil-Stalled-by-Security-Fears.aspx2009-10-01T04:00:00ZRace for Iraq Oil Stalled by Security Fears
https://sm.asisonline.org/migration/Pages/staying-secure-while-saving-worlds-wildlife-005258.aspx2009-03-01T05:00:00ZStaying Secure While Saving the World's Wildlife
https://sm.asisonline.org/Pages/On-the-Waterfront.aspx2008-09-01T04:00:00ZOn the Waterfront
https://sm.asisonline.org/migration/Pages/weathering-severe-climate-and-conflict.aspx2008-02-01T05:00:00ZWeathering Severe Climate and Conflict
https://sm.asisonline.org/migration/Pages/russias-oil-bust.aspx2007-11-01T04:00:00ZRussia's Oil Bust
https://sm.asisonline.org/Pages/beginning-stability-congo.aspx2007-07-01T04:00:00ZIs This the Beginning of Stability in the Congo?
https://sm.asisonline.org/Pages/pipelines.aspx2006-01-01T05:00:00ZAttacks on Colombian Pipelines

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https://sm.asisonline.org/Pages/Required-License-to-Operate.aspxRequired: License to Operate<p>​<span style="line-height:1.5em;">Tensions are running high. A series of perceived slights by a mining company has angered the community, and the locals are ready to take action. They head to the mine site outside the village, steal explosives, and set them off, destroying access to the mine and damaging the water supply to the site. The damage causes the mine to close, and the country moves closer to an impending civil war, which will eventually kill thousands.</span></p><p>Such was the case in 1988 in Bougainville, Papua New Guinea, when citizens lost patience with a copper mining operation and decided to take action to stop it. Community stakeholders were upset with mining companies in general following World War II because mineral rights in Papua New Guinea were sold to international mining companies using a method that left many locals feeling they were not properly compensated. Following the purchase of the rights, the mining company did little to build relations with the local population, allowing these feelings to fester.</p><p>Once the mine was established in 1972, locals accused it of dumping chemicals and waste into waterways—damaging land values and harming the ecosystem. This caused further tension in the community, as locals felt the mining company had not sufficiently paid for the land and was damaging the surrounding area. Escalating measures further, townspeople then discovered that a majority of the profits from the mine went to sources outside of the local community.</p><p>These factors led to the attack on the mine, and Bougainville eventually plunged into war, closing the mine, damaging the mining company’s brand, and ruining relations with the local community. Today, the mine remains closed and is under armed guard. The Jubilee Australia Research Foundation conducted a survey of the local community and found “near universal” opposition to reopening the site, The Guardian reported in 2014.</p><p>The concept of having a social license to operate has not historically been part of corporate strategy. It was often relegated to the corporate social responsibility team, with case studies of social investments merely a profile on a “feel good” page of the annual report to showcase the noble deeds the company was doing across the globe. Now, however, those reports are gaining more attention as social license is becoming a major consideration for companies engaged in business development that affects both the environment and the economy of communities—particularly those where there is a history of civil or political instability.</p><p>Security plays a key part in making the social license to operate successful. Traditionally, security would be involved in protecting physical assets on the ground, contracting guards for the work site, and arranging protection details for executives in areas of unrest. But that’s rapidly changing. Corporate security must now be equally concerned with gaining the trust and approval of communities ranging from indigenous tribes in Brazil worried about mineral extraction to aboriginal groups in British Columbia, Canada, fearful of disruption and pollution caused by liquid natural gas facilities.</p><p>This is shown in examples from Guatemala to Mozambique, Peru to Senegal, where recent activism against mining, energy, and agribusiness operations has disrupted production, damaged capital equipment, and, in some cases like Bougainville, shut down operations. Along with disturbing the work environment and causing physical damage, these incidents generate negative press, damage the company’s global reputation, and undermine shareholder confidence. </p><p>Affecting part of the change in social license to operate is that, for companies in these industries, many regions of new development are also areas that continue to face civil unrest, terrorist activity, and war. This means that even if local antagonism is not targeted directly at the company, chances are the local development team will be affected and corporate security needs to be prepared. These projects often become a catalyst for brewing unrest and a focal point for dissent that local communities are unable to express directly to the government or the corporate home office. As a consequence, the foreign investor has to deal with the spillover, which could determine the success of the project.</p><p>To shed light on this issue, Security Management sat down with Nathalie Wlodarczyk—managing director for global risk consulting, economics, and country risk at IHS, which provides insight and analytics in critical areas to global businesses—to learn more about how social license is changing, and what role corporate security can play in managing the shift.</p><h4>What’s the strategy?<br></h4><p>In her role as the head of IHS’s Country Risk consulting team, Wlodarczyk works to develop intelligence solutions for clients in government and the corporate sector. However, she says there is no piece of software or reference manual that can guarantee a successful social license initiative. This is because the approach deals with people and their opinions, beliefs, and agendas. The initiative must be tailored to deal with all these factors, which will be different in each context. The company must be willing to change its focus because circumstances on the ground can shift quickly. </p><p>To be effective, the social license strategy must be part of the evaluation and planning phase of the country-entry plan long before any digging or construction takes place. If it’s an afterthought, the damage is already likely to have been done, and the cost of the response will be high and often hard to recover from. </p><p>Instead, Wlodarczyk says the first step in creating a social license to operate initiative is doing your homework before entering the country. “This starts with understanding the political and social power structure at all levels of the government and within the local communities,” she explains. “A sound understanding of the history of the communities impacted and the cultural norms of engagement is essential.” </p><p>Additionally, when entering a new market or operating environment, companies need to understand local social and economic history, formal and informal power structures, the rights and protection of foreign investors, the strength of the rule of law in disputes, and any legislation or elections that may affect the company’s operation. Along with this basis of understanding, companies should also map out the who’s who in the new market, what drives them, and what these players have the power to accomplish.</p><p>Of course, people’s ideas and agendas can change for a variety of reasons, which means an effective stakeholder strategy has to be responsive. Speed of response is critical to head off a confrontation that could damage the company’s reputation, or worse, shut down operations. Identifying the scenarios that are likely to play out in the locality can help companies spot both the stakeholders who will wax and wane in influence, as well as new agendas that may emerge. </p><p>Having an understanding of how things are likely to change is what allows a company to be proactive and maintain social license beyond the initial country-entry stage. It becomes the basis for successful stakeholder engagement and—where appropriate—a social investment strategy. It also informs how the company manages its reputation, both locally and globally. ​</p><h4>Who’s got the power?</h4><p>Identifying who holds the real power in the business locality is critical to success. Often, the formal and official channels of power are not the only ones that need to be managed. Parallel channels of power can be as—or even more—important to earning social license, Wlodarczyk emphasizes. </p><p>Consider the case of an agribusiness company that wanted to set up operations in Sierra Leone, which Wlodarczyk has studied in her work on stakeholder mapping for IHS. The agribusiness company did everything by the book; it received the necessary licenses and permits from the national government, it got to know the local tribal leader—the paramount chief (PC), who in Sierra Leone is traditionally the custodian of community land—and it negotiated a lease for the community land with the PC.</p><p>However, the company didn’t realize that the PC was not the only important local decision-maker. His counterpart was a local member of parliament (MP). The two men were from opposing political parties and the MP was much younger, which in the eyes of the PC meant he was subordinate. So the PC excluded the MP from conversations and negotiations with the investor.</p><p>In the MP’s view, the PC was a turncoat, as he had switched his allegiances from the old ruling party to the new one, so the two were already at odds. The MP suspected the PC was out to replace him with a candidate from the ruling party in the next election and saw the agricultural project as an opportunity to undermine the MP. </p><p>The MP rallied his constituents—many of whom were also young men—and set up blockades on the leased land to protest the development. “This escalated to confrontations with the police, escalating further when the protestors reached out to an international nongovernmental organization and accused the investor of a land grab, which made the events in this small corner of Sierra Leone global news,” Wlodarczyk explains. “As a result, the project stalled for more than two years—in large part because the investor made the mistake of not identifying all local influencers at the outset.”</p><p>Another case in Peru that Wlodarczyk has examined had more severe ramifications when a mining company had to deal with the unexpected result of a 2010 election. After three years of laying the groundwork with the national and local governments—including company funding of four community projects to improve health, education, farming, and infrastructure—the company’s investment was scuttled as a result of the election of a dark-horse opposition candidate who was against mining.</p><p>“While the company had managed to successfully map the stakeholder universe in great detail—in contrast to the Sierra Leone example—it did not anticipate how this landscape might change,” Wlodarczyk says. “In particular, the company did not expect this candidate to win the local election, so it had not invested time in building a relationship with him. In fact, the candidate had campaigned on an antimining platform and, true to his word, supported protests against the project once he was elected.” </p><p>Opposition to the mining investment spiraled out of control rapidly, and within one year local protestors had destroyed equipment worth $2 million at one of the company’s other mines in the region, triggering the imposition of martial law in the area. Little more than a year after the election, the project was suspended, and has never been resumed. In this case, not only did the company suffer a significant financial setback, it lost an opportunity to put its resources elsewhere.</p><p>Companies must be vigilant in monitoring local conditions, attitudes, and social and political shifts, Wlodarczyk adds. They must also learn to anticipate and accommodate change in their operational plans. Companies must keep their ears to the ground—not just for the most likely scenarios and changes, but for the unlikely, yet high-impact, ones that have the potential to derail activities.</p><p>However, this is not a straightforward formula. It is hard work and change can “scuttle progress,” Wlodarczyk adds. Therefore, the other side of a successful social license strategy is to have an honest recognition of the company’s risk tolerance. Specifically, what level of risk or challenge is a company willing to accept?” she asks. “The risk-reward ratio and degree of tolerance will differ from company to company, but knowing where that line is can be important for a successful strategy—not least when managing the fallout of an incident such as a protest or strike.”</p><h4>Who are the activists?</h4><p>Along with identifying local stakeholders, companies must monitor the global community of activists and commentators who operate largely on the Web and through social media. While geographically removed from the project itself, these activists can have a real impact on projects in places where the Internet is hardly used. This means that even though a local strategy may be extremely successful and help the company secure buy-in from stakeholders directly affected by a project, this other constituency may feel differently, Wlodarczyk explains.</p><p>An example that Wlodarczyk cites is the Pebble Mine in Bristol Bay, Alaska, where some of the most vocal opposition came from activists in urban centers far away from the site itself. “A major concern was that the mine would adversely impact the [salmon] spawning grounds in the watershed that is downstream from the proposed mine,” Wlodarczyk says. “A number of gold buyers and retailers, including Walmart, have signed a pledge to boycott gold from the Pebble Mine.”</p><p>The online-activist stakeholders can be crucial for a company’s social license, primarily from a reputational risk perspective. Their voices carry far and they have access to media outlets and opinion shapers. These networks can also easily amplify the social discontent of a local community. Indeed, local activists are increasingly recognizing the power of these global activities and are incorporating social media tactics into their own activities. </p><p>There is much that corporations need to do to develop and maintain their social license to operate. In many cases, an equitable balance can be achieved between development and local community interests. </p><p>“Building and keeping social license is the responsibility of all employees—from the CEO supporting the contract negotiation to the engineer on the ground evaluating a construction site,” Wlodarczyk explains. “As relationships and power structures shift, the company cannot afford to lose its connection with the local community.”</p>GP0|#28ae3eb9-d865-484b-ac9f-3dfacb4ce997;L0|#028ae3eb9-d865-484b-ac9f-3dfacb4ce997|Strategic Security;GTSet|#8accba12-4830-47cd-9299-2b34a4344465
https://sm.asisonline.org/Pages/Resilience-Trends.aspxResilience Trends<p>​<span style="line-height:1.5em;">“Thousands have lived without love, not one without water,” poet W.H. Auden famously said. In many countries, enjoying a safe and secure water supply is something most take for granted. The United States, for example, has had an “unrivalled tradition” of low-cost, universal access to drinking water, says Robert Glennon, a water policy expert at the University of Arizona and author of Unquenchable: America’s Water Crisis and What to Do About It. In actuality, a safe and secure water supply is never a given, and there are signs that the recent water crisis in Flint, Michigan (covered in Security Management’s May issue), may be a canary in the coal mine for the future of America’s water. The U.S. water and wastewater system is in urgent need of repair and replacement; some of the piping dates back to the Civil War era, experts say. But federal and state funding appropriations have been insufficient for keeping water supply infrastructure in good repair.</span></p><p>“For years, there’s been a general inadequacy in funding,” Glennon says.  As recent proof, Glennon cites the American Recovery and Reinvestment Act of 2009, commonly known as President Barack Obama’s $787 billion stimulus package. “A small fraction of that, less than 1 percent, was devoted to water and wastewater,” he explains.</p><p>The American Water Works Association has estimated that repairing the million-plus miles of water mains across the country, and expanding that infrastructure so that it can adequately serve the country’s growing population, could cost up to $1 trillion over the next 25 years. The U.S. Environmental Protection Agency (EPA) has a lower estimate: roughly $330 billion over 20 years.</p><p>Both of these estimates dwarf the existing $1.38 billion that state and local governments are spending annually on drinking water and wastewater infrastructure, according to statistics from the American Society of Civil Engineers (ASCE). (Using a comparable 20-year time frame, the ASCE estimate comes to roughly $28 billion, or only about 8 percent of the EPA’s estimate of needed funding.) </p><p> Besides inadequate funding for repair, demand is growing, not only from an increasing population but from high-tech industries. Large corporations with cloud computing operations occupy enormous industrial facilities that are air conditioned. “This requires a heck of a lot of water,” Glennon says. </p><p>In addition, environmental factors pose challenges to a secure U.S. water supply. In states like Florida, rising sea levels are pushing into coastal aquifers and causing saltwater intrusion, making the aquifers more saline and problematic for human consumption. </p><p>Worldwide, a possible future water crisis is a problem alarming many, in part because of its potentially disastrous cascading effects on the global economy. A survey released by the 2016 Global Economic Forum found that a water crisis is the top concern for business leaders over the next 10 years. Further in the future, the global water situation continues to look grim, by several measures. By 2030, a stable supply of good quality fresh water can no longer be guaranteed in many regions, and a 40 percent global shortfall in supply is expected, according to the Carbon Disclosure Program’s (CDP) Water Program.</p><p>By 2050, an inadequate supply of water could reduce economic growth in some countries by as much as 6 percent of GDP, “sending them into sustained negative growth,” says a recent World Bank report, High and Dry: Climate Change, Water, and the Economy. Regions facing this risk include India, China, the Middle East, and much of Africa. Water insecurity could also ramp up the risk of conflict and instability—droughts can spur a spike in food prices, which can in turn cause civil unrest and increase migration. While 2050 might seem quite far in the future, water-related challenges are happening right now. The World Bank report also found that 1.6 billion people currently live in nations that are subject to water scarcity, and that number could double over the next two decades.</p><p>Moreover, a water crisis can have a devastating effect on the global economy. The CDP’s Water Program estimates that, if current status quo water management policies are sustained worldwide, $63 trillion in assets will be put at risk. Such economic challenges are highlighting the importance of improved water governance, which includes an emphasis on positioning the water supply so that it is more resilient in the face of challenges due to demand, the environment, and other factors, says Hart Brown, who leads the organizational resilience practice at HUB International and is a member of the ASIS International Crisis Management and Business Continuity Council.</p><p>“In light of the case in Flint, as well as droughts, floods, and the potential competition for water resources, improved water governance is being brought to the forefront of many conversations,” Brown says. When resilience enters the conversation, the challenge becomes creating an “adaptive capacity,” or “diversification of the water and sanitation systems.” </p><p>However, there is no one resilience model that can be successfully replicated for all water supply and treatment plants, because each system is a unique combination of human, technological, and environmental factors, Brown explains. In the United States, a wide range of water systems could potentially benefit from resiliency upgrades, he says. Those include conventional utility piped water supply systems; dug wells and tube wells (wells in which a long pipe is bored into an underground aquifer); rainwater harvesting operations; unprotected water sources such as rivers and streams; and cooperative developments in areas that share transboundary water resources.</p><p> Improving the resiliency of any water system takes investment, but just as important, it takes sound science, Brown says. </p><p>“Water managers need access to the best available scientific information and water risk assessments to support these long-term water-related decisions, including the ability to forecast and plan for important capital expenditures,” he explains.  Businesses also have a role to play, especially those that rely on water for production, manufacturing, agriculture, and power generation purposes, he adds. Some businesses are already being strategic in this area; they consider shared responsibility and sustainability of water systems a core function. </p><p>“Partnerships with local communities are important in the ability to overcome shared water risks,” Brown says. </p><p>Globally, improved resiliency and water management practices, if given sufficient investment, have the potential to pay tremendous dividends, the World Bank report argues. It calls for a three-point approach: improving resiliency to extreme weather events by improving storage capacities, reusing facilities, and other tools; optimizing the use of water through better planning and incentives; and expansion of the water supply, where appropriate, through recycling, desalination, and damns.</p><p>“While adopting policy reforms and investments will be demanding, the costs of inaction are far higher. The future will be thirsty and uncertain,” the report says.</p>GP0|#28ae3eb9-d865-484b-ac9f-3dfacb4ce997;L0|#028ae3eb9-d865-484b-ac9f-3dfacb4ce997|Strategic Security;GTSet|#8accba12-4830-47cd-9299-2b34a4344465
https://sm.asisonline.org/Pages/Liability-and-Insurance-Implications-of-Body-Cameras.aspxLiability and Insurance Implications of Body Cameras<p>​<span style="line-height:1.5em;">In the wake of recent law enforcement controversies, body cameras are becoming widely adopted among police forces. Their use is beginning to trickle down to security officers, albeit slowly. But with this tool’s increasing popularity, security managers should be aware of the potential liabilities and insurance implications of such devices.</span></p><p>Whenever there is a camera in use in a public setting, the first question the public raises is that of privacy. Indeed, concerns about privacy can turn into an insurance issue if a person recorded by a body camera attempts to file an invasion of privacy suit against the guard’s security firm or the business contracting the guard. This adds a new exposure for security firms.</p><p>Body cameras cannot account for poorly trained or otherwise unskilled guards. In these cases, body cameras will increase liability, making it easier for negligent or erroneous acts to be discovered.</p><h4>Limiting Liability</h4><p>Before using body cameras, it is imperative that security managers consult legal counsel and local law enforcement. Use their guidance to determine the legality of body cameras worn by security guards and appropriate protocols and procedures for filming, video storage, and usage. Certain states have laws prohibiting such footage outright. </p><p>Security managers should then set up policies and procedures modeled after law enforcement protocols. Determine when and where guards will be recording. Are they going to keep the camera running their entire shift, or are they going to hit record when there is a security stop or transaction? Also, security managers should determine how long and where the company will store recordings and how the firm will use them. The longer the footage is kept the better, but storage space and the cost of that storage may factor into this decision.</p><p>To address privacy concerns, guards using the cameras must let members of the public know they are being recorded. All stakeholders must be informed of this decision so that they may take appropriate action. For example, a homeowner’s association should send letters out to their members informing them that security guards will be wearing cameras. The association should also change its bylaws to note that residents cannot sue the homeowner’s association or the security force for invasion of privacy.</p><p>When a client requires a contract guard service to use cameras, the contract company should request a hold harmless clause—to insulate the guard company from claims brought due to the use of these cameras. An attorney or legal counsel should assist in drafting this language and they should also consider Third Party Indemnification and Limitation of Liability clauses to further limit liability.</p><h4>Leveraging Cameras </h4><p>From an insurance perspective, body cameras will likely be a net positive for security professionals. Here are a few key reasons why: </p><p>• Guards are less likely to behave badly when their interactions are being recorded.</p><p>• Assuming a guard is well trained and acts appropriately, video footage will help insurers assess claims quickly and accurately, possibly reducing the number of frivolous excessive force claims.</p><p>• On-the-job footage can assist firms in training new guards. Ongoing training is a crucial component of reducing the severity and frequency of insurance claims. With footage captured from body cameras, security firms can demonstrate to guards both good and bad habits and transactions. This also helps identify patterns that can lead to claims before an unfortunate incident occurs.</p><p>As with most advances in security technology, body cameras should be evaluated judiciously before they are implemented. But this technology ultimately has the potential to actually ease some insurance concerns for security firms. </p><p><em><strong>Tory Brownyard</strong> is president of Brownyard Group (www.brownyard.com), a program administrator that pioneered liability insurance for security guard firms more than 60 years ago. He can be reached at tbrownyard@brownyard.com or 800-645-5820.</em></p>GP0|#cd529cb2-129a-4422-a2d3-73680b0014d8;L0|#0cd529cb2-129a-4422-a2d3-73680b0014d8|Physical Security;GTSet|#8accba12-4830-47cd-9299-2b34a4344465