While many people may dream of wealth and fame, they can bring unwanted attention. This publication spoke to a firm working in the expanding security and protection advice field - Starkey Guardian Services.

For many people, getting seriously rich, powerful or famous is a dream but as ever, there is a fly in the ointment. The higher a profile, the more unwelcome attention a person gets.

And given the risks, wealthy individuals will sometimes need to bring in specialist firms to handle family security and protect their property. As the world’s population of high net worth individuals grows in countries with sometimes weak law enforcement, it is no surprise that demand for such services has expanded.

This publication recently interviewed Starkey Guardian Services, a business founded by former UK military professional Michael Richman, a heavily decorated man who holds the Victoria Cross – the highest possible UK military award, as well as other top-level commendations, according to his firm’s website.

Richman is chief executive of the firm which, after running for over two decades, took on the “Starkey” name as part of an alliance in 2010 with the renowned Starkey International Institute. That business was founded by Mary Starkey in 1981 and sometimes referred to as the “Butler Boot Camp”, or more usually, as “Starkey”. SII as it now exists was created in 1989.

Richman’s business is headquartered in Denver, Colorado, serving groups worldwide such as private individuals, corporations and governments. Much of the work comes from referrals. It also advertises in publications such as the Robb Report and on other industry partner websites; it also forms strategic alliances with companies such as architecture and design firms. ) Staff at the firm must have at least 15 years experience and have extensive military background from both the US and the UK. It has 11 employees, as well as other contractors, such as instructors.

The business has two major areas: executive, dignitary, celebrity – encompassing provision of bodyguards, executive protection and kidnapping negotiation – while the private estate, home, family segment covers activities such as vehicle, marine and jet security; architectural evaluations; security on-site visits; estate, home and family security protection.

Recently, the firm launched Starkey Guardian Security and Protection Education, comprising one-month courses designed to educate “close protection” professionals – bodyguards.

The current climate

In some ways, the dynamics of this business are easy to figure out: there are a lot more rich individuals out there. For example, last year’s Merrill Lynch Capgemini World Wealth Report said the world’s population of high HNW individuals grew by 17.1 per cent to 10.0 million in 2009.

“There are more high net worth individuals and families today, but unfortunately there are also more criminal activities being directed to the [them], in a more sophisticated manner. They are in real danger nowadays from not only white collar related crimes, but also from those that endanger them and their families in a real physical sense. And they are in danger not just abroad, but at their homes,” the firm’s executives told this publication.

“Many families have a security system that is installed with cameras at the gate, front door and backyard and think they are secure. They activate the system and forget it,” it warns.

“The truth is they are very exposed to many types of crimes such as home invasion, kidnapping, even theft from employees,” it said.

Starkey says HNW individuals require a sophisticated security plan that includes equipment as well as trained household personnel to monitor their security affairs daily. Educating people is a key part of what this firm does. Not surprisingly, it predicts expanding growth worldwide, as regions such as Asia and Latin America, for instance, see a boom in the number of wealthy individuals. This is even more important as some of these regions have patchy existing law enforcement.

Trends

Although some of the growth has been galvanised by 9/11 and events immediately thereafter, the private security market has been expanding for some time. In some jurisdictions, such as Latin America, kidnappings and other crimes have raised awareness that personal security for affluent people is no longer a luxury item. Kidnap statistics for the top ten countries in terms of reported cases that were compiled by Hiscox, the insurer, showed there were 7,773 kidnaps between 1992 and 1999, with 5,181 such incidents in Columbia alone. (Hiscox no longer publishes such data.)

There are a large number of firms that provide bodyguard services, surveillance and risk assessments, for example, such as Counter Threat Group and Control Risks; another is The Anvil Group, a London-headquartered firm. In the US such firms include Platinum Protection Group. Many of these firms use former police and military personnel.

“There are plenty of security companies out there both good and bad, but not one of them can actually boast that they have a clear understanding as to how high-end clients wish to organize their lives around something that should never become an issue such as security. Our clients are all high-end wealth and come to realize the need for protection due to their financial standing in life,” Starkey Guardian Services says.

“Our services for them are usually customized to their individual needs. However, most include, but are not limited to, securing their physical residences, properties and locations visited; screening, training, and monitoring all security and service staff, systems, and procedures; checking all vehicles, jets, yachts, etc, for  transportation; as well as providing safe family and executive protection during travel domestically and internationally,” it continues.

Given the kinds of work that the firm does, what sort of processes are used to vet staff and also to check the bona fides of clients and potential clients?

The firm replies: “We carry out extensive checks on all our clients no matter how wealthy they purport to be. I understand that they want to know who we are, but we should not be prevented from knowing who they are. 'What’s good for the goose is good for the gander' so they say in my country. Furthermore, we will perform an extensive telephone interview to assess their concerns. When we agree to perform a site study for the family, the fee and travel expenses must be received before we perform any job. So if they are not a real potential client this will weed out the chaff right away.”

What sort of problems and risks do both of the Starkey-named firms have to contend with today?

“Problems always occur within the security business as we are dealing with human beings who have no real idea as what happens behind the scenes in order to make thinks look normal on the surface. Additionally, there is a great deal of education for any principal to know exactly how the household should run. Many are on crisis mode and don’t know there are tools and a system developed to help the staff manage an efficient home without chaos. As with all human beings change is hard. Our job is to educate them and their staff, if they will let us,” it continues.

One of the issues the industry has faced is a change in its image from a “low-budget” item to a different one, Starkey Guardian Services says.

“Until recently, security was regarded as a 'grudge' service. It was bought at the cheapest possible cost and when cuts had to be made during recession, it was the first area for 'economy'. Now, the escalation of crimes, fraud and vandalism of all kinds has increased demand for protection against loss from intrusion and swindle,” it says.     

“Although being at home should feel safe and comfortable, notice how a person takes notice at a loud or strange noise they don’t recognize. The truth is it isn’t 1950 where we all felt safe at home. We have a new 'comfortable' feeling. It’s the same for the high net worth family as well. But they can be bigger targets particularly because of their wealth,” it adds.