INDUSTRY: Investment and Security Consulting

CLIENT: Confidential (referred to as “the client”)

About

An American investment firm, operating in a high-risk region of Mexico, approached ICE24 to address concerns regarding their operational environment and a potential business partner. The firm required a comprehensive analysis of the security threats in their area and an investigation into the reputation and reliability of the local partner, a Mexican national with significant influence in the business landscape.

Objectives

• Threat Analysis: Conduct a thorough assessment of current threat levels in the client’s operational areas in Mexico.
• Partner Due Diligence: Investigate the background, reputation, and potential risks associated with the local partner.
• Risk Management: Develop strategies to mitigate reputational and operational risks.

Challenges

• Reputational Risk: Ensuring local partners did not expose the organization to reputational damage or legal consequences.
• Criminal Ties: Addressing suspicions of connections between local partners and organized crime groups.
• Internal Threats: Identifying and managing internal threats such as theft of manufactured goods by company personnel.
• External Threats: Mitigating risks from the high levels of insecurity, including extortion, kidnapping, and homicide, that could impact staff safety and retention.

Strategies

• Background Checks: Conducted thorough background checks on local partners, scrutinizing affiliations, financial history, and legal records.
• Reputational Footprint: Independently verified partner backgrounds and associations to ensure reliability.
• Local Experts: Leveraged a robust network of local experts, law enforcement, and community leaders to gain insights into the political and security dynamics of the region.
• Threat Analysis (Cartel Influence): Investigated the local cartel’s influence on business activities, including their presence, activities, and potential risks to operations.
• Open-Source Investigation: Assessed the local partner’s reputation and reliability through open-source Mexican content and publicly available information.
• Community engagement: expanded corporate social responsibility initiatives in the local community to foster goodwill and demonstrate its commitment to the local population.
• Crisis Preparedness: through an integrated SOS response system between our global 24/7 operations rooms and Security coordinator; and staff training modules such as first Aid, Situational Awareness and Personal Security, and dealing with corrupt officials.

Outcomes

• Risk Mitigation: The client effectively mitigated reputational and operational risks by leveraging ICE24’s comprehensive due diligence process.
• Enhanced Security Protocols: Implemented enhanced security protocols based on the findings, addressing both internal and external threats.
• Informed Decision-Making: Provided the client with detailed insights into the local security landscape and the reliability of the potential business partner, aiding in informed decision-making.
• Reputation Protection: this multinational company mitigated the occurrence of reputational risks by disassociating from questionable clients and ensuring compliance with legal and ethical standards.
• Improved Community Relations: community engagement initiatives (enabled by our locally-driven approach) improved relationship with the local population and stakeholders.
• Crisis Resilience: crisis preparedness plan ensured the organisation could respond swiftly to unforeseen issues.