MARITIME SECURITY
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ARMED AND DANGEROUS: MANAGING THE RISK OF PRIVATE SECURITY CONTRACTORS
Our consultancy model is designed to specifically help our clients select the best optimum cost security provider, mitigate the due diligence risks and achieve absolute compliance. This approach provides clients with a safety framework to manage the logistical, compliance and legal risks of engaging armed security personnel. The risk management benefits can then be leveraged against improved costs across the company’s related insurances. Commander Bennett Aries risk Group
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WEAPON LICENSES COWBOYS FINES MANSLAUGHTER BRIBERY ACT CLUB COVER SOLAS ACCOUNTABILITY FLAG APPROVALS RULES OF ENGAGEMENT CIVIL SUITS LIABILITY LIMITS KNOCK FOR KNOCK CRIMINAL RECORD CHECKS LIABILITY INSURANCE TESTIMONIALS BMP 4 VETTING PROCEDURES
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INDUSTRY ISSUES Although there has been a reduction the total of reported incidents in the With the rising frequency of piracy in attacks thenumber shipping industry piracy has serious HRA of the Indian Ocean, piracy continuesoftoPrivate cause shipowners, charterers and traders signifireservations concerning the majority Security Companies’ (PSCs) cant financial and operational challenges. The risks to life and property, not least in the face of capabilities and maturity in the maritime security field. Despite IMO’s revised the increasing number and aggression attacks in West Africa, prevalent today as the guidance on the engagement of armedofsecurity personnel andare theaswell intended 2010 and 2011 period. But managing thatand risk ICOC, has changed. Whilst complex the compliance objectives of organizations such as SAMI there remain legal process has led associated to improvedwith and the transparent standards in the deployment of Private maritime Security issues use of security companies. Companies (PMSC’s), the shipping industry continues to have serious reservations concerning the majority of PMSC’s capabilities and maturity in the maritime security field. There are significant variations in competence, quality and price across the spectrum of contractors offering services. The increasing number of maritime Despite IMO’s revised guidance on the engagement of armed security personnel and the well security operating without seaborne licenses to carry Group intendedcompanies objectives of organizations such as SAMI,experience ICOC, BIMCOorand the International arms without appropriate insurance presents shipowners a tough call of P&I and Clubs, there remain complex legal issues associated with thewith use of security companies. on whether the use of armed guards is appropriate, practical or possible. In particular there are still significant variations in competence, quality and price across the spectrum of contractors offering services. Apart from the expense issue, the major concern for shipowners is the level of Apart from therequired expense to issue, the the major concern for the associated industry is the level of due diligence due diligence satisfy flag state and requirements required to satisfyItthe and the requirements of theprocess. insurers that of the insurers. canflag be state disastrous toassociated cut corners in the diligence If the sePMSC isfails “fit for It can be warranties disastrous tothen cut corners on the insurance compliance process. alected shipowner onpurpose”. the information the vessel’s The impact on the stakeholder chain from the risk of insurance avoidance, fines and detention cover is likely to be null and void. costs can be ruinous. Most companies manage the diligence process without the required level of vetting expertise stipuMost companies manage the diligence process without the required level of lated by IMO to ‘identify reliable, professional armed security providers’. Hence our role. vetting expertise stipulated by IMO to ‘identify reliable, professional armed security providers’. Hence our role.
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ARIES SECURITY SERVICE Our service is unique. We drill down on each individual security company in order to ensure they are fit for purpose; hold all the necessary licenses; employ the appropriate personnel; use legitimate sources for weapons procurement; use well-established local agents and of course evaluate and benchmark the competitiveness of each proposed contractor. Aries manage the entire process from procurement of the company through to disembarkation and post transit report: • • • • • • • • • •
Contract acceptance (P&I/HM/K&R) Flag Approval Criminal background checks License authenticity Security team credentials and experience Weapon selection Intelligence support UKMTO/MSC HOA liaison BMP4 adherence Insurance compliance
By only selecting first class security providers who have a proven track record, our consultancy model is designed to provide clients with a risk framework to mitigate the due diligence process by achieving absolute compliance. The risk management benefits can then be leveraged across the company’s related insurances.
By forging security and insurance management expertise our aim is to achieve both significant cost savings for the shipowner and peace of mind in dealing with the complex risk issues of employing security companies.
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There are literally hundreds of Iraq and Afghanistan ‘expatriates’ setting up shop, never having been aboard a ship before, much less knowing how to defend it. We have fears that a glut of inexperienced and unqualified so-called maritime security operators are bringing the legit guys into disrepute. Private security in the marine sector is currently not regulated in the way that it is on land. There is a big worry this could be opening the doors to a lot of cowboys. The lack of regulation in the private security sector in the maritime domain is a problem and this is leading to growth in the sector which suggests that standards may be very variable. Fly-by-night security companies had to buy their weapons on the black market in places such as Djibouti. Those that are in control of potential lethal force must have clear and agreed procedures to work under. Without this, the already grey area of armed guards at sea could turn into a real mess.
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INSURANCE ISSUES P&I, HullHull & Machinery, K&R,K&R, Loss Loss of Hire The piracy piracy scourge scourgeraises raisescomplex complex P&I, & Machinery, ofand HireWar insurance issues: and War insurance issues: •• •• •• •• •• •• ••
Who covers loss or damage to the vessel? Who covers loss or damage to the vessel? No K&R cover? Who pays the ransom? GA and sue and labour? No K&R cover? Who pays the ransom? GA and sue and labour? The legality of paying ransom? The legality of paying ransom? Double insurance issues? Double insurance issues? IsIs hire covered? hire covered? Does P&I cover liability risks? Does P&I cover liability risks? Is Is the ship deemed seaworthy for security purposes? the ship deemed seaworthy for security purposes?
Despite theadds introduction of Guardcon, a move towards approvals, accredited standards andthe comSecurity a further complication. Security including mon RUF procedures, the deployment of armed security personnel adds a further comengagement of private security companies, is now a common warranty for plication to the insurance picture. Security approvals are now a common warranty for all all the policies. Mismanagement of the approval process can be costly. At the policies. Mismanagement of the approval process can be costly. At worst the insurers worst the insurers may have the right to avoid the policy, but typically without may have the right to avoid the policy, but typically without a professional presentation a professional presentation of the security arrangements, the risk is priced of the security arrangements, the risk is priced higher - in some cases by 50%. higher - in some cases by 50%. Our team of security and insurance consultants work hand in hand to source competitive insurance quotes backed by a comprehensive warranty compliant overview of physical secuOur team ofincluding security insurance hand in hand to rity measures theand procurement of a consultants ‘fit for purpose’work security company and implesource competitive insurance quotes backed by a comprehensive warranty mentation of BMP 4 standard security. compliant overview of physical security measures including the procurement of a ‘fit for purpose’ security company and implementation of BMP 4 standard security.
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OUR EXPERIENCE Our maritime security experience and reputation is founded on complimentary skill sets from accomplished military backgrounds, private maritime and land based security roles to senior company executive status within legal and insurance environments. The combined resource places us in a unique position to provide a total security management solution for a one off contract execution to multiple contract team deployments for larger fleets. Our team has managed over 300 Guardcon compliant contracts providing PMSC selection recommendations to due diligence pre contract compliance checks on all nominated personnel to managing the invoicing and post contact procedures. Two of the Aries team has been actively involved in MARSEC operations since 2005 with over 50 transits serving as team leaders and managing over 400 operations in complex environments. The Aries team has been instrumental in the negotiation and release of three hijacked vessels. The senior management is headed by Commander William Bennett who has 38 years naval experience at sea and ashore in nuclear submarines and general service. He is supported by Nick Little with over 30 years legal and insurance expertise and Evan Themalakis with vast MARSEC experience. The roles are:
Commander Bennett Jointly responsible for the overall management of Aries security service and with particular expertise for maritime security strategy and anti-piracy measures. Nicholas Little Jointly responsible for the overall management of Aries security service with particular expertise in the management of contract, insurance and legal related compliance issues Evan Themelakis Responsible for technical oversight of the PMSC vetting process including on site assessments and ongoing due diligence evaluations
Despina Kalfa Responsible for administration coordination and in particular record keeping of all due diligence, warranty and vetting procedures. This role is combined with insurance purchase requirements covering K&R and War. Aya Alwindawi Provides administration support and compliance assistance with respect to both dynamic and static due diligence work. Dimitris Gathis Qualified litigation and troubleshooting maritime lawyer who provides back up support in the event of an incident or contract dispute.
KEy PERsONNEL PROfILE Commander William Bennett Former serving Royal Navy officer of 38 years experience, including command at sea and ashore, both in nuclear submarines and general service. He has operational experience in the Falkland Islands, Northern Ireland, Iraq, Kuwait, The Balkans, Gulf of Aden, Mozambique Channel, Red Sea and others. He has conducted complex Surface and Subsurface Warfare operations worldwide including counter terrorism and operations against piracy, slavery, drug-running and illegal arms dealing. He holds security clearances at the Top Secret Codeword level for UK and US governments. Nick Little Since graduating with a Masters in Maritime Law in 1983, Nick has held senior positions with major IG P&I Clubs in London, Liverpool and Newcastle. Before joining Aries in 2010 he has been based in Athens as a senior broker for a major Italian insurance broking house. As a partner in the Aries Group Nick has a key role in the founding and development of its security consultancy business. With the opening of the company’s joint venture Dubai office he is also spearheading the development of the group’s Middle East business interests. Evan Themelakis Raised in Saudi Arabia until 1986 Evan served 8 years in the Australian Army as a paratrooper and combat engineer. Honourably discharged from the military in 2001 Evan then deployed to Afghanistan in 2001 and later to Iraq in 2003 with private security companies contracted by the US Government and coalition forces. Has spent the past 10 years working in hostile environments in countries such as Afghanistan and Iraq, as well as Sudan, Somalia, Pakistan, Lebanon and Libya. He has been involved with the maritime security sector since 2003 overseeing 400 transits. Despina Kalfa Despina holds an MA and a BA in Shipping & Transport from London Guildhall University. She has been in the insurance business since the late 90’ having worked with well-established insurance companies and brokers having gained first-class experience in all aspects of H&M insurance as Underwriting Assistant, Documentation Technician and Accounts Executive. Aya Alwindawi A graduate from Baghdad University Aya has gained valuable experience in the security industry working for several years with a major US contractor in Iraq and Kuwait during which she managed security clearances and badging for private contractors tasked under U.S. Government contracts. A key role involved liaison with U.S. Military and State Department officials.
ARIEs RIsK GROUP We are an established independent risk consultancy group focused on the global marine, trade and transportation sector. Operating from our offices in Athens, Nicosia and Dubai through a joint venture operation with the Omni insurance group of Turkey, we provide risk consulting services across a broad spectrum of global clients that includes a NASDAQ listed blue water shipping corporation owning seventy plus vessels; South America’s largest brown water and product tanker fleet of over 500 hundred units; to European and Middle East shipping and transport sector operators, traders and charterers. Our services span traditional insurance placements to advising on managing risk through innovative solutions. Our security consultancy service to guide shipowners, operators and offshore service companies working in complex environments is designed to guide our clients through the selection, compliance, legal and insurance complexities of contracting security firms. The security division is headed by Commander William Bennett who has 38 years naval experience at sea and ashore in nuclear submarines and general service. Our security services is expected to be ISO 9001 accredited by Lloyds Register of Quality Assurance (LRQA) by September 2013 and we are associated with leading industry organisations SAMI, SCEG and BIMCO.
Commander William Bennett
Nick Little
Despina Kalfa
william.bennett@aries. risk.com
nick.little@aries-risk.com
despina.kalfa@aries-risk.com
Office: +30 212 213 4330
Office: +97143697287
Office: +30 212 213 4330
Mobile: +30 6947192028
Mobile: +971503967813
Mobile: +30 6932617422
Aries security consultancy is backed by our ability to draw on an experienced management team delivering a seamless security consultancy service to the placement of piracy related insurances.
Commander William BennettAthens | Dubai | Nicosia Nick Little T: GR 0030 212213430 william.bennett@aries-risk.com nick.little@aries-risk.com T: DXB 00971 43697287 Office: +30 212 213 4330 Office: +30 212 213 4330 E: info@aries-risk.com Mobile: +30 6947192028 Mobile: +30 6932706706 W: www.aries-risk.com
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Despina Kalfa despina.kalfa@aries-risk.com Office: +30 212 213 4330 Mobile: +30 6932617422