**TRICKS OF THETRADE: CHOOSING A SECURITY SERVICES FIRM IN RUSSIA**

 

by Janna Agasieva

 

Security companiesappeared on the Russian market in the mid-1990s, when Russia began itstransition to a market economy and experienced a vast growth in privatebusiness. At that time, a tremendous need for professional security servicesarose and resulted in the establishment of a large number of agencies andbureaus providing a wide range of services connected with protecting business.However, the   August 1998financial crisis sharpened competition on the local market and forced local andforeign businesses to adopt new strategies and provide more sophisticated security.

 

The Russiancommercial environment provides many reasons for requiring the services of asecurity 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 insolvencyof business partners are just some problems faced by businesses. For these andother reasons, it is necessary to guard business commodities, protectintellectual property, request information support in selecting businesscontacts, and use other security agency services. 

 

Currently, the mainsecurity services required by most businessesCguarding property, freight escort, and personal securityCare offered by the majority of agencies. Oneof the new trends in the security industry that only advanced security firmsprovide is information support. This service includes background checks ofpotential 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 ismaturing. As a result, well-developed businesses tend to deal with one reliableagency that provides a full spectrum of services.

 

**Choosing the RightSecurity Firm**

When choosing asecurity service, it is important to be careful and well informed. For example,according to one security services expert, among over 800 security companiesregistered in St. Petersburg, only about 80 are Adependable.@ Thiscan be explained by the fact that there is no strict law in Russia onregistering a security agency and there are no requirements that an individualmust meet to establish such a company. Important steps include:

 

$               *Fit Servicesto Needs.* Carefully selectthe agency that best meets your needs. Good sources of information areprofessional catalogues and specialized magazines where services of securityagencies are reviewed and analyzed in detail. Examples of these magazinesinclude S*ecurity and*

* *

$               *Safety* and *Security World*,  monthlies published in Moscow thatcover all of Russia. It is important to check if the company has all necessarylicenses allowing it to provide a full range of services. All securitycompanies must have a License for Security Services, which needs to be renewedevery 5 years. Also, if the agency claims to undertake detective research, aspecial license for this type of activity is required.

 

$               *Look forAvailability of Qualified Personnel.* Make sure that the prospective agency=s staff has been carefully selected. Managers of highly reliable localagencies prefer to hire former employees of the Ministry of Internal Securityor the Federal Security Services because they have many years of experience andare physically and psychologically prepared.

 

$               *Check forSolid Financial Background.*Ensure that the security agency can meet its financial responsibilities towardits clients. A professional security firm should be responsible forreimbursement of a client=s expenses in case of a failure to provide services. A statement onthis matter should be included in the agreement. Also, a solvent companynormally has an agreement with an insurance company. If the limit of theinsurance 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 companyable to provide professional security services, local entities are taking stepsto provide information on the business security and safety market. Professionalsecurity associations, the Federation of Safety Services and SecurityEnterprises in Russia, and city and oblast administrations organize specializedexhibitions and hold competitions and contests between security firms. Forexample, the third international open contest, AAnti-Crime,@ wasrecently organized by the Federation of Safety and Security Enterprises andheld in St. Petersburg in the framework of the regional safety program. 

 

*Janna Agasieva is a Commercial Assistant inthe **U.S. & Foreign Commercial Service** (FCS) at the U.S. Consulate inSt. Petersburg, Russia.*

 

*For more information on FCS St. Petersburgservices or the Russian security and safety equipment/services market, U.S.firms can visit **BISNIS Online** at www.bisnis.doc.gov, or contact JannaAgasieva at tel: +7 (812) 326-2560; fax: +7 (812) 326-2561/62, or email:[email protected].*