National Analysis of Criminal, Operational, and Logistical Risks for Private Security Managers
By Eduardo Gagg
The recent cycle of gold appreciation has significantly amplified risks associated with asset security and the physical integrity of employees in the Mining sector. With the substantial reduction of physical currency circulation due to the frequent and culturally established use of the “PIX” payment system, criminals are compelled to exploit other activities to achieve their objectives. In a country characterized by vast distances, remote operations, shadow zones in the Brazilian telecommunications infrastructure, logistical diversity, and asymmetries in state presence, gold mining has emerged as one of the industrial sectors most exposed to complex property crimes, extortion, sabotage, and systemic interruptions.
This white paper presents a structured national analysis, considering:
- Operational typology (open pit and underground);
- Product form (doré at the site or concentrate);
- Predominant logistics (road, air, and river);
- Direct impacts on business continuity.
The study culminates in a risk matrix explaining criticality, impacts, and management suggestions aimed at private security managers, business continuity, and corporate risk.
Introduction: Gold, Value, and Economic Crime Gold has always occupied a unique position in the global economy: a reserve asset, a hedge instrument, and a universal medium of exchange. During periods of macroeconomic instability, geopolitical tensions, and exchange rate volatility, its appreciation tends to accelerate. However, this movement generates negative externalities for producing countries, especially those with large remote areas.
In Brazil, gold mining is distributed across different biomes and social contexts, ranging from highly industrialized operations to regions historically pressured by illicit economies. The rise in gold prices provokes:
- Increased criminal attractiveness to the product;
- Elevated risk of sophisticated criminal planning;
- Intensified activity of internal actors (insider threat).
Unlike opportunistic crimes, events affecting gold mines tend to involve specialized planning and high impact, with the potential to paralyze operations for weeks or months. Such crime affects not only the company owning the mine but also the economy, politics, and public security. Its collateral effects certainly impact the common citizen. High-impact crimes notoriously affect Society.
A company is designed to generate profit and exists to meet Society’s needs, from the common citizen to the diverse institutions within it. Regarding Society and the impacts of such crimes, Mining companies must possess a robust BCP (Business Continuity Plan) to continue serving business-related interests.
Risk Assessment Two vectors must be constantly analyzed to sustain gains and avoid losses:
- Operational Routine
- Information
One cannot improve what one cannot measure, as stated by Irish physicist and mathematician William Thomson. It is impossible to protect or manage without reliable indices structurally related to the nature of the business. Consequently, support contextualized in ERM (Enterprise Risk Management), BCP (Business Continuity Plan), and SRA (Security Risk Assessment) is necessary to maximize resource utilization based on the probability of occurrence and business impact.
ERM, BCP, and SRA are fundamentally supported by operational routines and information. Both vectors must be managed under a balanced perspective of Operation and Security, adequately aligned with business objectives.
Operational Typology and Risk Exposure Mining operations possess inherent conditions that must be analyzed from various aspects and viewpoints for adequate business protection. Mining companies are usually established in isolated regions, distant from large-scale police protection. For instance, the response time for a Special Military Operations Battalion to reach such regions is not immediate. Criminals obviously exploit this condition. Mining sites can also be reached via diverse access points, both by land and air, resulting in strong visual and territorial exposure.
The increase in metal value also increases the risk of sabotage and fraud, both internal and external. To understand threats and treat them correctly, it is necessary to view the situation through other angles. An analysis of internal and external risks, however subjective, would hardly deviate from:
Modalities of each risk:
- Theft of doré metal: Gangs specialized in “city domination,” leveraging knowledge and experience in attacks on major centers of value custody (armored transport companies, banking centers, pawnshops, for example), subjugate the nearest police forces and force entry into the mining site, typically using explosives.
- Cyber Attack: The most common scenario would likely be the hijacking of critical systems, a targeted ransomware attack where the malicious agent gains access to the corporate network and executes simultaneous encryption of systems essential to the mine’s operation, rendering them unavailable until a ransom is paid in cryptocurrency. The result would be total mine paralysis, causing major impacts.
- Extortion via Tiger kidnapping: This involves a crime where a mine employee, generally with access to information or decision-making power, is deprived of freedom and held in captivity. Under threats to their family members, they are forced to collaborate with criminal plans to obtain values.
- Insider threat (Infidelity): This is a risk that has been increasing due to the degradation of moral and social values. In this case, employees are recruited by criminals to collaborate with invasion plans directly or indirectly through information leaks.
- Logistical Sabotage: The objective is to generate operational stoppage, financial losses, or contractual non-compliance by exploiting logistical bottlenecks. It is a type of risk associated with infidelity but focused on harming the company without necessarily obtaining financial gains for the saboteur.
Risk Treatment A common error easily committed by security managers is viewing a risk solely from their own point of view. Several practices can help obtain different views of risks:
- Maintain a multidisciplinary team with individual knowledge and skills that complement each other.
- Practice “Gemba,” which is going to the shop floor; by the definition of the Japanese concept, going to the real place, speaking with people, being close to the operation.
- Do not exaggerate Gemba. When one spends too much time inside a location, one becomes part of the “landscape.” White elephants pass in front of you unnoticed.
- Seek consultative instruction: a consultant can assist in implementing best practices and systems with the best return on investment.
- Invest in training and guidance. There are good TWI (Training Within Industry) practices aimed at keeping the employee aware of operational procedures as well as risk management measures. This practice, associated with Gemba, is experientially one of the best practices as it involves leaders and subordinates in the application of policies, procedures, and business management objectively.
Given the delineated complex scenario, where gold appreciation amplifies threat sophistication, effective protection of assets and involved lives transcends conventional measures. It is indispensable to rely on the performance of professionals with proven experience in the Metal and Gemstone Mining Sector, both in the Brazilian and global context. Only consolidated expertise in Violent Crimes against Property, combined with a robust Corporate Risk Analysis, is capable of anticipating vulnerabilities and structuring resilient responses that ensure, ultimately, integral security and business continuity.
About the Author: Eduardo Gagg holds a degree in Mechanical Engineering, an MBA in Business and Technology Management, and a Postgraduate degree in Criminal Investigation and Forensic Psychology. He works as a Multidimensional Security Consultant and has over 28 years of experience in managing private security companies.
Communication and Security Portal
Edition:
Cleiber Levy G. Brasilino – PhD in Strategic Management, Police Sciences, and Preventive Public Security
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