TRICKS OF THE TRADE: CHOOSING A SECURITY SERVICES FIRM IN RUSSIA
by Janna Agasieva
Security companies appeared on the Russian market in the mid-1990s, when Russia began its transition to a market economy and experienced a vast growth in private business. At that time, a tremendous need for professional security services arose and resulted in the establishment of a large number of agencies and bureaus providing a wide range of services connected with protecting business. However, the August 1998 financial crisis sharpened competition on the local market and forced local and foreign businesses to adopt new strategies and provide more sophisticated security.
The Russian commercial environment provides many reasons for requiring the services of a security agency: the imperfection of the local banking system and, as a result, risk of dealing with cash flow payments; high competition in the market; and insolvency of business partners are just some problems faced by businesses. For these and other reasons, it is necessary to guard business commodities, protect intellectual property, request information support in selecting business contacts, and use other security agency services.
Currently, the main security services required by most businessesCguarding property, freight escort, and personal securityCare offered by the majority of agencies. One of the new trends in the security industry that only advanced security firms provide is information support. This service includes background checks of potential partner companies and potential employees, and checks on a bank=s status, among other information.
In the past, security firms specialized in providing one or two specific services. However, the latest developments in private business in Russia show the market is maturing. As a result, well-developed businesses tend to deal with one reliable agency that provides a full spectrum of services.
Choosing the Right Security Firm
When choosing a security service, it is important to be careful and well informed. For example, according to one security services expert, among over 800 security companies registered in St. Petersburg, only about 80 are Adependable.@ This can be explained by the fact that there is no strict law in Russia on registering a security agency and there are no requirements that an individual must meet to establish such a company. Important steps include:
$ Fit Services to Needs. Carefully select the agency that best meets your needs. Good sources of information are professional catalogues and specialized magazines where services of security agencies are reviewed and analyzed in detail. Examples of these magazines include Security and
$ Safety and Security World, monthlies published in Moscow that cover all of Russia. It is important to check if the company has all necessary licenses allowing it to provide a full range of services. All security companies must have a License for Security Services, which needs to be renewed every 5 years. Also, if the agency claims to undertake detective research, a special license for this type of activity is required.
$ Look for Availability of Qualified Personnel. Make sure that the prospective agency=s staff has been carefully selected. Managers of highly reliable local agencies prefer to hire former employees of the Ministry of Internal Security or the Federal Security Services because they have many years of experience and are physically and psychologically prepared.
$ Check for Solid Financial Background. Ensure that the security agency can meet its financial responsibilities toward its clients. A professional security firm should be responsible for reimbursement of a client=s expenses in case of a failure to provide services. A statement on this matter should be included in the agreement. Also, a solvent company normally has an agreement with an insurance company. If the limit of the insurance is not less than $1 million, it guarantees the company=s solvency.
Local Entities Can Assist the Search
As it is difficult to find a reliable company able to provide professional security services, local entities are taking steps to provide information on the business security and safety market. Professional security associations, the Federation of Safety Services and Security Enterprises in Russia, and city and oblast administrations organize specialized exhibitions and hold competitions and contests between security firms. For example, the third international open contest, AAnti-Crime,@ was recently organized by the Federation of Safety and Security Enterprises and held in St. Petersburg in the framework of the regional safety program.
Janna Agasieva is a Commercial Assistant in the U.S. & Foreign Commercial Service (FCS) at the U.S. Consulate in St. Petersburg, Russia.
For more information on FCS St. Petersburg services or the Russian security and safety equipment/services market, U.S. firms can visit BISNIS Online at www.bisnis.doc.gov, or contact Janna Agasieva at tel: +7 (812) 326-2560; fax: +7 (812) 326-2561/62, or email: Janna.Agasieva@mail.doc.gov.