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American Express Bank, which lost none of its 350 employees despite the destruction of its offices at 7 World Trade Center, relocated to three underground bunkers across the Hudson River in Weehawken, N.J. Plastic was peeled off standby PCs. Backup computer tapes were sent in by messenger. Plans were in place to reroute communications from international banking networks, but by the time the system was up, operators were hours behind. "You cater to the worst scenario, but this was worse than we had planned for," says Norman Gilchrist, head of global operations. Yet within 12 hours of the attacks, the bank--assisted by its Plano, Texas-based computer service provider EDS--had processed 19,000 transactions worth $14.3 billion, or nearly 70% of its backlog.
--Lower Your Profile
In the last few years, corporate chiefs such as Microsoft's Bill Gates and IBM's Lou Gerstner became global celebrities--boosting brand awareness through frequent public appearances. Is the age of the celebrity CEO over? "Their risk profile just went up exponentially," says Jules Kroll, head of the security firm Kroll Associates. But most identifiable CEOs are already well protected, he says. It's other executives who aren't. "Some of the wealthiest people in the corporate world shun security," says Kroll. "They could use more."
To avoid disruptions resulting from frequent evacuation drills, some firms are questioning the appeal of trophy buildings like Chicago's Sears Tower, which was cleared during the attacks and for a few hours on a day the following week on the rumor of another hijacked plane. Many Wall Street firms, in fact, recovered quickly because their work forces were dispersed. While Morgan Stanley's retail brokerage business occupied the World Trade Center, its headquarters are in midtown Manhattan, and a trust-services division is based in Jersey City, N.J. "Companies should be in low-profile locations for many good business reasons, not just for security," says retired Admiral William Crowe, former Chairman of the Joint Chiefs of Staff, and now an adviser to GlobalOptions, a corporate security firm in Washington. "We recommend that clients decentralize if it's practical." Firms with well-known American brands are also being advised to lower their profiles abroad. Philip Morris says it may soon remove its brand names (such as Marlboro and L&M) from delivery vans and sales uniforms in Indonesia.
--Check Employee Backgrounds
Almost all U.S. companies conduct some form of background checks on prospective employees. But according to the International Personnel Management Association, only 37% of employers examine criminal records, and only 21% inspect motor-vehicle records. That's about to change, say security consultants. Some countries--though not the U.S.--now offer multinational companies access to their government "intelligence indexes," which include lists of people suspected of terrorist activities, money laundering and other illegal acts. When companies are hiring foreign nationals, an index check "can provide extra safety," says William Daly, a senior vice president with Control Risks Group, a corporate intelligence firm based in London.
--Study Your Insurance Policy's Fine Print