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D O I N G B U S I N E S S I N L AT I N A M E R I C A

Alfredo Iturriaga, CPP – Chile Maria Teresa Septien, DSE – Mexico Alex Omar Garrido, CPP - Panama

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Maria Teresa Septien, DSE Mexico

Alfredo Iturriaga, CPP Chile

Alex Omar Garrido, CPP Panama

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A G E N D A

• Threats and Risks in Latin America

• The Latin American Business Style: Challenges, Obstacles and Opportunities

• How to choose a business partner and security company

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U N D E R S TA N D I N G A N D I D E N T I F Y I N G S E C U R I T Y

A N D C O M P L I A N C E R I S K S I N L AT I N A M E R I C A

Global Risks

D O I N G B U S I N E S S I N L A T A M

Alfredo Iturriage, CPPa.iturriaga@racowind.com

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IMPA

CT

PROBABILITY

Threat

Matrix

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IMPACTPROBABILITY

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Interconnectednessof global threats

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IMPACTPROBABILITY

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Poor 243 mil. app = 39 %

Fuente: CEPAL 2016

PovertyUS$ 2,5Daily

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Poverty

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GINI Coefficient(CORRADO GINI)

The Inequity – The Gap

0 = PERFECT EQUALITY1 = PERFECT INEQUALITY

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3.3% of Latino20 Mill app.

They feel pushed to move away from escaping from the Crime, last decade

Migrations

http://www.cepal.org/mujer/reuniones/mesa38/oim_migraciones.pdf

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45 %Do not finish school

Source: PNUD Y Adecco LA

Los NI NIbetween 15 and 29

years of age

30 mill Latinos

60 % 40 %

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Los NI NI

Fuente: PNUD - 2016

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The prison situation inLatin America

INCUBATES, RECYCLES AND FEEDS THREATS

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State

SocietyMarket

Freedom

EqualityJustice

Globalization

POST - Globalization

the Paradigm chanched

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Latin Americans peoples, We are Obsessed by the PAST.……and guided by the old ideologies

While…..

Asians peoples are obsessed with the FUTURE.... Guided by EDUCATION

Andrés Oppenheimer

Reflection on the threats

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19D O I N G B U S I N E S S I N L A T I N A M E R I C A

T H E L AT I N A M E R I C A N B U S I N E S S S T Y L E : C H A L L E N G E S , O B S TA C L E S & O P P O R T U N I T I E S

▪ Culture▪ Language ▪ Communication▪ Corruption - Compliance▪ Business Partners Selection

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Maria Teresa Septien, DSEmseptien@afimacglobal.com

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D O I N G B U S I N E S S I N L A T A M

The region offers massive economic opportunities but also challenges

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C U LT U R E

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D O I N G B U S I N E S S I N L A T A M

Latin America is an exotic and extensive land — full of social and political diversity.

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C U LT U R E

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C U LT U R E

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C U LT U R E

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“Poor communications and language barriers are costing business a lot of money, and executives are not doing enough”.

L A N G U A G E & C O M M U N I C AT I O N S

bisgovuk via flickr

Poor communication and

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D O I N G B U S I N E S S I N L A T A M

COMMUNICATION STYLES

▪ Even if English is the global language of business, cultures maintain their own style of communicating.

▪ This frequently causes serious misunderstandings and irritations especially as we have no insight into our own communication style and the affect this has on people with a different cultural background.

▪ Some may be offended by the directness of a foreign colleague while others find indirectness a cause for suspicion.

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E N G L I S H L A N G U A G E P R O F I C I E N C Y I N L AT I N A M E R I C A

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C O M M U N I C AT I O N S & E X P E C TAT I O N S

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D O I N G B U S I N E S S I N L A T A M

▪ Observe if people frown or squeeze their eyes. This is often body language for not understanding a speaker.

▪ Ask questions frequently in order to know if that what is discussed is also understood.

▪ Summarize often or ask others to summarize for you.▪ When a non-native English speaker is participating in

the discussion, reassure him that if the language is a problem you will help

C O M M U N I C AT I O N S T R AT E G I E S

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C O R R U P T I O N – C O M P L I A N C E R E Q U I R E M E N T S

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D O I N G B U S I N E S S I N L A T A M

“When you want to do business in Latin America, everything,

everything is about relationships,”

“This is born from a culture of a ‘today for me, tomorrow for you’ attitude, and macroeconomic initiatives in which there is a high concentration

of wealth and widespread poverty.”

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D O I N G B U S I N E S S I N L A T A M

▪ Latin America just like anywhere else, struggles with fraud and corruption

▪ Corruption in the region is “the abuse of an entrusted power for private gain”.

▪ The culture of corruption - they see opportunities to take advantage of people and situations.

C O R R U P T I O N – C O M P L I A N C E R E Q U I R E M E N T S

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D O I N G B U S I N E S S I N L A T A M

The risks depend on the country. For example, Uruguay and Chile are less corrupt, while Haiti and Venezuela are the most corrupt, according to Transparency International’s Corruption Perceptions Index.

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D O I N G B U S I N E S S I N L A T A M

C O R R U P T I O N – C O M P L I A N C E R E Q U I R E M E N T S

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D O I N G B U S I N E S S I N L A T A M

▪ In Latin America, lawmakers may make public policies with deep reforms that may attract more investors in key areas, but they lack the political will to control fraud and corruption.

▪ Weak government control, high statistics of violence and crime, and a business culture that is hierarchical and with no integration process contributes to the troubles that Latin America faces.

▪ There is no awareness or even an investigation of third parties, i.e. when a CEO involves a spouse or family member.

C O R R U P T I O N – C O M P L I A N C E R E Q U I R E M E N T S

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D O I N G B U S I N E S S I N L A T A M

The bad news - fraud and corruption arerampant in all industries and sectors, and someauthorities often don’t acknowledge it.

The good news – we have seen someimportant actions to fight corruption in theregion

C O R R U P T I O N – C O M P L I A N C E R E Q U I R E M E N T S

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V I D E O - F I G H T I N G C O R R U P T I O N I N L ATA M

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D O I N G B U S I N E S S I N L A T A M

https://youtu.be/vhXbUb83SFM

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F I G H T I N G C O R R U P T I O N S T R AT E G Y

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D O I N G B U S I N E S S I N L A T A M

• Implement strong Compliance programs in the company.

• Train your employees to avoid being involved in corruptpractices and clarify the consequences.

• Reinforce the importance of the Code of Ethics and acceptable business practices in the company.

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PA R T N E R I N G W I T H L ATA M C O M PA N I E S

Acting as a strategic business partner, contributing to the company results within the region

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• Goal: Business partnering as a security professional who worksalongside other business areas, implies supporting and advisingtheir strategic and operationaldecision-making through insightsthat drive better business.

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B U S I N E S S PA R T N E R I N G

• Business partners must understandthe business.

• Contribute with strategic thinkingand valuable insights that are fueled from a strong Security background.

• Take into consideration the impacton all other parts of the business.

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H O W T O S E L E C T T H E R I G H T S T R AT E G I C PA R T N E R A N D S E C U R I T Y C O M PA N Y ?

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D O I N G B U S I N E S S I N L A T A M

Alex Omar Garrido CPPaogarridom@yahoo.com

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W H E R E S H O U L D W E L O O K F O RS E C U R I T Y S E R V I C E S ?

• Web pages?• Social media?• Yellow Pages?• ASIS Chapters in the Region• References

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LATIN AMERICA IN NUMBERS

ALL INDEX EXCEPT SAFETY WERE DEVELOPED BY LATIN BUSINESS CHRONICLE - THE SECURITY INDEX IS FROM FTI CONSULTING.

BUSINESS INDEX BEST WORST

CHILE VENEZUELA

PANAMA BOLIVIA

EDUCATION RATES BEST WORST

URUGUAY HAITI

ARGENTINA GUATEMALA

SECURITY RATES BEST WORST

COSTA RICA HAITI

CHILE VENEZUELA

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G.D.P. PRONOSTIC 2017

2017 GDP PROJECT

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W H I C H S E R V I C E S A R E T H E Y L O O K I N G F O R ?

▪ Transportation of valuables (armored vehicle)▪ Consulting▪ Risk assessments▪ Commercial Escorts▪ Executive Protection▪ Electronic Security▪ Government Security▪ Special Events▪ Physical Security▪ Maritime, Airport, Hospital Security

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S E L E C T I O N C R I T E R I A

▪ Governement resolution for each service▪ Belongs to a Local or Regional Organization▪ Personnel is ASIS certified or other▪ Industrial experience▪ References from Customers▪ Local or Interational Coverage▪ Documented SOP▪ Staff reliability (How will you guarantee this?)▪ Quality of services▪ Policies and Liability▪ Supervision system▪ Financial Capacity▪ Good standing in Social Security and Taxes

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C O N C E R N S

▪ Corruption▪ Lack of information for example: Due Diligence▪ Unreliable information: verify with your sources▪ Differences (in service level) per country▪ Who are the Customers and Stockholders?

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R E C O M M E N D A T I O N S

▪ Visit the Company and meet their managers▪ Verify the Installations & licenses / permits▪ Request references▪ 24/7 Operations

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REQUIREMENTS FROM INTERNATIONAL COMPANIES

▪ Staff Selection & Recruting Process▪ Emergency Handling Training▪ Supervisors and Staff Training▪ Penalties for Incidents and Losses▪ Education (Agents)▪ Reliability Test▪ Additional benefits for employees▪ Insurance for Civil Responsibility (Coverage)▪ Quality certifications (ISO, etc)

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Client 2014

▪ A specialist

▪ Knowledge of the industry

▪ Higher education

▪ High Human Sensitivity

▪ Negotiator and influencer

▪ Concern for the environment

▪ Expected to be treated according to their educational level.

Client 2017

▪ Demands a higher specialization

▪ Social responsibility

▪ Concern for the human conditions of the Officers

▪ Compliance of Legal and Environmental regulations.

▪ Establish long term and trustworthy relationships

CLIENTS CHANGE

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WHERE ARE WE GOING?

▪ Higher demand of Security Services

▪ Customer Satisfaction

▪ Gender Equality

Competing for acquiring and

retaining the right human resources

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D O I N G B U S I N E S S I N L A T A M

For those looking to expand or invest in Latin America and benefitfrom the massive economic opportunities that the region offers,they need to have a clear understanding not only of the regionalrisks and threats, but of the cultural differences and challenges,implement and promote best business practices and select the bestpartners and providers, to be successful!

CONCLUSIONS

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I S I T A G O O D I D E A D O I N G B U S I N E S S I N L AT I N A M E R I C A ?

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Absolutely!

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Q & A… lets debate

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D O I N G B U S I N E S S I N L A T A M

Alfredo Iturriaga, CPP – Chile Maria Teresa Septien, DSE – Mexico Alex Omar Garrido, CPP - Panamamseptien@afimacglobal.coma.iturriaga@racowind.com aogarridom@yahoo.com