Introduction
The global mobility of high-net-worth individuals (HNWIs) and executives has increased substantially in recent years, driven by factors such as business expansion, international investments, and lifestyle preferences. However, this heightened mobility exposes HNWIs to a myriad of security risks, ranging from targeted theft and privacy breaches to physical harm and extortion attempts. Recognizing and addressing these security concerns is paramount to ensuring the safety and security of individuals and their families throughout their travels.
In an increasingly globalized economy, many companies send employees abroad for business purposes.
As businesses expand their operations internationally, understanding the insurance landscape becomes imperative. Further, employers are legally obligated to take all steps necessary to prevent harm to their employees and executives – a concept referred to as “duty of care.”
“Duty of care is the legal obligation that employers must ensure the safety and well-being of their employees while they are at work,” according to Shannon Scully, Vice President at Global Guardian. A breach of duty of care can have far-reaching implications for any business – leading to monetary loss in the form of financial penalties or lawsuits, and reputational damage.
It is critically important for any individuals traveling overseas to understand the risks and take a proactive approach to mitigating any potential harm.
Identifying risks
International travel risk today requires more than planning for a singular issue. There are always the newsworthy threats impolitically unstable or dangerous areas, but more mundane issues can also lead to complications, such as road closures. “Threats can change depending on the destination, time of year, or even the travelers themselves: women travelers and LGBTQ+ travelers face different threats than their peers, for example, "Scully notes.
Health Risks
Executives and HNWIs traveling abroad may face exposure to diseases not prevalent in their home country, necessitating health insurance covering various medical services, including emergency medical evacuations.
Scully points to the legal case of Palfrey V. Ark Offshore Ltd., where an employee of Ark Offshore Ltd. died from malaria while on assignment in West Africa. “Although the company advised the employee to seek medical advice for the trip, they failed to ensure necessary vaccinations and medications were available. The employee’s widow sued the company, and the court ruled in her favor, stating the employer breached their duty of care by not providing critical health information and resources for the region,” she notes.
Digital Security Risks
With the increasing reliance on digital platforms, HNWIs are vulnerable to cyber-attacks aimed at accessing their financial information, personal data, and confidential business dealings. Travelers face multiple digital risks, such as: unsecured Wi-Fi networks, device theft, data interception and social media exposure.
Device charging and storage also have related concerns. Leaving a laptop in an empty hotel room can leave the traveler open to exploitation in countries that practice state-sponsored cyber-crime, whiles stations at airports may be downloading stored data.
HNWIs and executives should be armed with best practices to protect their online footprint – which can include disabling autojoin Wi-Fi functionality, using a mobile hotspot or VPN, remaining vigilant about Bluetooth connections, and removing any inactive devices from the paired devices list.
Travel Risks
Incidents such as flight cancellations, lost luggage, or trip interruptions can significantly affect company operations. Natural disasters and climate events can also play a role here. Whether it is wildfire in Greece or an earthquake in Indonesia, travel interruption due to extreme weather is widely expected to increase. Travel insurance can offer protection against potential inconveniences, but organizations and HNWIs should have a mechanism to monitor events in real-time – and the ability to respond nimbly to any potential threat.
Liability Risks
Travelers should also consider the legal aspects of any security measures, especially when moving across international jurisdictions. Compliance with local laws and regulations, as well as understanding the limitations and capabilities of security services indifferent regions, is essential for ensuring the effectiveness and legality of security measures implemented during travel.
And companies can be held liable for executives ’actions while abroad. It is critical for employees and HNWIs to be educated about cultural norms and local customs prior to departing for their destination.
Geopolitical Instability
Changes in political climates may pose threats to employees abroad. “Navigating regions dealing with sudden geopolitical shifts or political unrest, requiring awareness and strategic planning, is also becoming more common,” Scully points out.
HNWIs are at a higher risk of targeted kidnapping and extortion due to their perceived wealth and affluence. This threat is particularly prevalent in regions known for high crime rates or political instability.
Whether traveling for business or leisure, HNWIs also face the risk of physical harm, theft, or assault, especially in unfamiliar or volatile environments.
Risk management strategies
A robust travel risk management plan will include the following:
Employee Training
An organization should plan to implement training programs focusing on safety, health precautions, digital security best practices and local laws in host countries.
Pre-Travel Assessments
The business should plan to conduct assessments to identify risks associated with an employee's destination, including health alerts and travel advisories. An organization should adhere to ISO 31030, which outlines best practices fortravel risk management. Published in2021, ISO 31030 is an internationally recognized standard, which provides guidance on travel risk management processes. Scully notes, “ISO 31030 sets forth a structured framework, offering guidelines for organizations to establish and enhance processes that identify, assess, and mitigate risks associated with travel.”
For any HNWIs, prior to travel a comprehensive security strategy should be implemented. This strategy encompasses physical security, cybersecurity, and operational protocols, aiming to safeguard the individual, their family, and their assets.
Crisis Management Plans
It is crucial to develop and communicate clear plans for emergencies, ensuring travelers know how to seek help and communicate with their employer and travel risk management team.
Regular Policy Reviews
In partnership with insurance and risk management advisors, companies and HNWIs should regularly review and update insurance policies to adapt to changing travel dynamics and emerging risks.
Essential insurance coverage types
Insurance solutions to mitigate travel risk are available as a backstop, to complement a proactive pre-trip framework. Types of coverage to consider include:
Conclusion
The security concerns faced by HNWIs and executives during travel are multifaceted and require a proactive and holistic approach to risk management. By implementing comprehensive security measures tailored to their specific profiles and travel requirements, HNWIs can significantly mitigate the potential threats to their personal safety, privacy, and financial assets.
Moreover, collaboration with reputable security professionals and advisors can further enhance the effectiveness and legal compliance of security measures implemented during travel, providing peace of mind and ensuring a secure experience for HNWIs.
