Advisen Front Page News Wednesday September 14 2016 Increasi

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Advisen Front Page News Wednesday, September 14, Increasing cargo theft risk recorded in Rio de Janeiro, Brazil Publication Date 09/13/2016 Source: PR Newswire SCOTTSDALE, Ariz., Sept. 13, 2016 /PRNewswire/ Brazil topped the list of countries suffering from heightened cargo theft risks, according to the latest Global Supply Chain Security and Business Continuity Risk Index report from BSI Supply Chain Services and Solutions, closely followed by Venezuela and Germany. The report showed that cargo theft continued to have a significant impact on trade globally, but highlighted that several countries were particularly affected. In Brazil, Rio de Janeiro saw its highest rate of cargo theft in the last 23 years in 2015, with 7,225 incidents taking place – a 23% increase. Likely reasons for this include the severe impact of Brazil's overall economic crisis in Rio, and the increased law enforcement efforts in Sao Paulo, traditionally the leading area for theft in Brazil, driving a shift in more organized criminal activity to Rio. With established and well organized 'fencing' networks in place, thieves have been able to target a range of product types, covering everything from food and beverages to cigarettes, electronics, pharmaceuticals. This increase in theft forced companies to either relocate or adopt additional costly security measures, with figures showing cargo transportation companies in Rio de Janeiro devoting an average of 15–20% of their budget to security measures. Worryingly, the rate of increase in theft is continuing into 2016 due to new gang activity in the Rio area and the movement of some gangs from Sao Paulo. Initial estimates suggest that theft increased by another 11% in the first quarter of 2016. Similarly, in Venezuela, the worsening political and economic situation has continued to impact the availability of food and basic necessities. This in turn has led to an increase in looting and cargo truck hijackings of typically low-valued goods like rice, water, flour and liquor. In Aragua State for example, the rate of cargo theft has increased by 500%. The data shows thieves are using violence and tactics that are more frequently reserved for high-value shipments rather than loads of food, further impacting the scarcity of goods as cargo truck drivers refuse to transport them. Daring vehicle shipment thefts have become increasingly commonplace in Germany. The figures show increases in both slash-and-grab and full-load thefts, with particular routes around the main cities and near borders being the most severely affected. Earlier this year, authorities disrupted a group suspected of stealing more than 100 cargo trucks across Germany since 2013. Separately, a group based in Lodz, Poland was apprehended and accused of stealing at least 60 fully loaded cargo trucks in Berlin, Brandenburg, and Saxony over nearly two years. The statistics show that Saxony-Anhalt saw more than twice as many slash-and-grab incidents in the first half of 2016 compared to the first half of 2015. Across 2015, BSI recorded 319 supply chain terrorism attacks, with attacks recorded in a record 33 countries, 38% more than the previous year. Attacks targeted a wider range of industries, with agriculture and food and beverage sectors more than tripling their number of attacks since 2013, and industrial, manufacturing, metals, and pharmaceutical cargo more than doubling. Jim Yarbrough, Global Intelligence Program Manager at BSI, stated that violent theft impacts the bottom line and supply chain integrity, emphasizing the importance of quantifying and mitigating such risks. The BSI's SCREEN Global Intelligence Risk Index, based on data from a network evaluating 22 risk factors across 204 countries, underscores the shifting global threat landscape and the need for organizations to understand and address supply chain risks effectively. About BSI Supply Chain Services and Solutions BSI Supply Chain Services and Solutions is a leading global provider of supply chain intelligence, risk management software, auditing services, and advisory support dedicated to helping clients mitigate global risks and ensure compliance. Their holistic risk management suite aims to predict, visualize, and reduce risks to protect brands and operational continuity. For more information, visit the company's website.

Paper For Above instruction

The article "Increasing Cargo Theft Risk Recorded in Rio de Janeiro, Brazil" provides valuable insights into different loss exposure identification methods as they pertain to supply chain security. Among the methods illustrated, two particularly relevant are risk assessment through incident tracking and analysis, and geographic vulnerability analysis. These methods are instrumental in identifying potential areas of loss within the supply chain, enabling organizations to proactively implement security measures.

Firstly, incident tracking and analysis serve as a pivotal loss exposure identification method by systematically recording and evaluating theft occurrences. In the article, the mention of 7,225 incidents in Rio de Janeiro in 2015 exemplifies this method. By analyzing patterns, frequency, and types of incidents—ranging from theft of electronics, pharmaceuticals, to food products—companies can identify high-risk routes, times, and target cargo types. This detailed incident data helps organizations recognize specific vulnerabilities within their logistics network, allowing targeted interventions such as increased security patrols, technological surveillance, or routing adjustments. For example, the observed 23% increase in theft incidents signals a growing threat that companies must address to mitigate potential losses associated with cargo theft.

Secondly, geographic vulnerability analysis involves evaluating the spatial distribution of theft incidents and criminal activities across different locations. The article highlights the shift of organized theft activities from São Paulo to Rio de Janeiro, driven by law enforcement efforts in the former city. This shift demonstrates how geographic analysis can reveal areas susceptive to organized crime participation. The increased theft activity in Rio, coupled with detailed reports of gangs operating multiple routes and targeting various product types, exemplifies this method. Such geographic assessment is critical for supply chain risk managers as it highlights hotspots requiring enhanced security measures, strategic routing, or even alternative delivery locations. Recognizing these high-risk zones allows organizations to allocate resources more effectively, reducing overall vulnerability.

Another example in the article is Venezuela’s surge in cargo hijackings and looting, especially of low-value goods such as rice, water, and flour. Analyzing these incidents' geographic and contextual factors enables companies to anticipate potential loss exposures stemming from political instability and economic decline, which often escalate theft activities in affected regions. Similarly, in Germany, increased thefts along main routes around borders point to geographic vulnerability, necessitating heightened security and monitoring in these critical zones.

By adopting these loss exposure identification methods—incident tracking and geographic vulnerability analysis—organizations can develop a nuanced understanding of threats faced in global supply chains. This enables targeted loss prevention strategies, optimized security deployment, and proactive risk mitigation, ultimately safeguarding assets, reducing operational costs, and ensuring business continuity amidst increasingly organized and geographically dispersed criminal activities.

References

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