A global upswing in incidents of kidnap for ransom, hostage taking, ?war tax? demands and other extortion tactics, piracy and sabotage are occurring more frequently, and in more locations worldwide, according to Ace USA, the American-based retail operating division of the Ace Group of Companies.

In the white paper ?Managing Kidnapping, Extortion & Other Global Security Risks? to be presented at the annual Risk and Insurance Management Society?s (RIMS) annual conference in Honolulu today, Ace USA notes that a rise in global security threats to multinational businesses and organisations mirrors the scope and complexity of the global marketplace.

Although high-profile kidnappings like that of American journalist Jill Carroll receive extensive media coverage, incidents of kidnapping for ransom, hostage taking and other extortion tactics are not just limited to war zones or high-risk regions according to author Jean McDermott-Lucey, vice president, Ace International & Specialty Group.

?Regardless of size or revenue, any organisation can be compromised anywhere, at any time, and organisations that ignore the reality of global security risks do so at considerable cost to their human, physical and financial assets,? she said.

Many organisations expect domestic business insurance coverage to provide adequate protection in foreign markets and end up poorly prepared to render help and/or cover the range of potential liabilities that arise when their employees are detained, stranded, lost, arrested or threatened on foreign soil.

The best risk management approach is to anticipate the occurrence of kidnap, extortion and other global security incidents, and to take proactive measures to minimise their likelihood or impact.

US-based companies weighing the opportunities against the risks of expanding into foreign markets should consider Commercial General Liability, Employers Responsibility, Voluntary compensation and related coverage?s, Global Employee Assistance Services as well as Kidnap & Extortion coverage.

In the latter case, ACE USA?s coverage is aimed at helping businesses avoid incidents altogether and includes access to expert advice on the prevention of and response to kidnap and extortion.

?Organisations that have identified and evaluated global security risks, and have designed an effective response plan, are able to manage crises rather than letting crises manage them,? she said, adding that it is paramount that employees are educated on staying safe before they travel to minimise kidnapping risk.

In the case of computers, restricting or documenting database access can reduce the risk of cyber-theft and extortion.