Operational Restructuring Support Services

The situation

A US corporation was in the process of transferring part of its French operation to Morocco. Employees reacted strongly and, in some cases, violently to the announcement, even winning the support of a high-profile politician. The corporation needed to minimize further damage to its assets, people and reputation.

Our approach

Control Risks conducted daily monitoring of French media and websites to allow our client to respond quickly. We also gathered intelligence to warn the company of demonstrations and petitioning of the local mayor and authorities. We deployed a local risk management expert to assist the US management team in dealing with French employees, advisors, and authorities. As there was a threat of violence, we provided executive protection services to management. We also reorganized local security staff, helped safely transfer key machinery to the new site, managed access control, and activated security risk management measures to prevent further incidents of theft and vandalism.

The outcome

Despite several unexpected confrontations with local staff and trade unions, Control Risks assisted the client in protecting staff from the actions of a small number of violent individuals, resuming production at the new site with only minor delays. The client subsequently asked us to assist with the closure of another facility. This time Control Risks was brought in at the beginning of the process, before the closure had been announced. Preparedness is critical as business resumption brings new challenges and potential for conflict.

The Situation

A European company with significant manufacturing operations in China was carrying out a restructuring of its supply chain that included dismissals of all distributors. In response, one distributor blocked access to the client’s facility, halting the distribution of goods and creating a tense working environment. The distributor tried to rally the workforce to its cause, claiming it had been subject to unjust termination among other issues. In reality, the distributor had been a bad actor, charging extortionate rates with potential links to local organized crime.

The approach

The client called Control Risks when negotiations failed and the distributor refused to cooperate or involve the law. Our due diligence on the distributor uncovered adverse local ties. We then conducted a comprehensive threat assessment and worked with the client to plan contingencies for various scenarios. We provided support in the form of hired vehicles, video surveillance equipment, on-site protection of resources at the factory and corporate office, media monitoring, and discreet intelligence gathering on the distributors. Control Risks also coordinated with local authorities and helped our client design and carry out a hostile negotiations strategy with disgruntled vendors.

The outcome

Equipped with our guidance and expertise, the company effectively came to terms with distributors, mitigating an escalating series of threats and dismantling the blockage. Our client was able to carry out the dismissal process as planned while keeping its employees safe and avoiding major disruptions to its operations.

The Situation

In preparation for a major corporate reorganization, a financial services company needed to develop a security plan to support the accompanying RIF across multiple sites. The company also needed a larger, more holistic assessment of their security practices to ensure they were positioned to address any risks stemming from the restructuring efforts.

Our approach

Working closely with the corporate security team, Control Risks put together a phased operational security plan that provided direction both pre- and post-announcement. The plan included a multidimensional and risk-based approach to security, incorporating risk assessments, on-site security, physical security systems, executive protection, and threat management teams. The plan also included longer-term measures such as employee assistance programs, stakeholder training and contingency planning.