**4.9. Transfer of the effect from antagonistic threats**

172 Risk Management – Current Issues and Challenges

displacement is a valid theory [75].

six types of displacement are explained below [65]:

**Crime**: Transfer to other types of crime

**Target**: Transfer to other types of goods

**Time**: Transfer to different times of the day

**4.8. Logistics, risk management and criminology** 

management are not necessary against crime.

**Perpetrator**: Transfer to another perpetrator

perpetrators.

theft opportunities presented earlier in this thesis and the configuration of the transport network, it is obvious that all opportunities cannot be eliminated, but they can be reduced by applying substantive preventive countermeasures. The object is to reduce crime opportunities which will lead to a change in potential theft situations. Therefore crime

Crime displacement can occur in several ways. [75] uses five types of displacement - crime, target, method, place, and time. [86] add another type of displacement, the perpetrator. The

 *Ex: offenders stop doing robberies and instead commit burglaries.* 

 *Ex: offenders stop taking goods and instead target money transports.*  **Method**: Better locking devices force the offender to be more innovative  *Ex: better doors force the offender to break-in through the windows.*  **Place**: Transfer to a less protected target in the same or other areas  *Ex: if one area improves security then the offender attacks another area.* 

 *Ex: better night security forces the offenders to strike during daytime.* 

 *Ex: Preventing one offender can create an opportunity for another offender.* 

The theory of crime displacement does not explain why perpetrators commit a certain crime or why some crimes are more attractive than others. Furthermore, it does not explain the perpetrator's perceptions and reactions to changes in opportunities [76]. Crime displacement is one probable explanation of why criminal patterns change in a certain system. A practical statement about crime displacement is that *if perpetrators have the ability, mobility, and flexibility to exploit the weakest link in the chain, they will do so*. It is the perpetrator's ability to organize a successful crime and their relationship relative to the actors within the transport network that are the fundamental variables for categorizing

The three terms security, risk management, and crime prevention often are considered similar and always work together [61, 74]. This idea suggests that security and risk management are good from an ethics point of view because they reduce crime; therefore, more or better security or risk management will reduce crime. The problem here is that crime is defined by a law according to the principle "no crime without a law" [54], while security or risk management has no philosophical attachment to law. Therefore, people on both sides of the law can have better security or risk management and that security and risk The mitigation of antagonistic threats refers to strategies to transfer the economic impact to another organisation/company. The basic idea is that by transferring the risk to someone else through different types of contracts, it reduces personal risk substantially [89, 90]. The contractual agreements are divided into two different categories - insurance policies and non-insurance contractual agreements between two organisations. Good risk transfer strategy is composed normally of both types of risk transfer.

*Transfer of risk by usage of insurance:* The insurance principle prescribes that the insurance company takes over the economic impact if something happens that is covered by the insurance contract. Therefore, the risk of this event needs to be rather easy to identify, classify, and determine for the insurance company to estimate the cost related to the risk and determine the insurance premium. This premium is also accompanied by an insurance excess, giving the potential insurance buyer three components to consider: the terms, premium, and excess of specific insurance. The incentive for each individual

insurance buyer is the central issue, and in extension, also the potential reduction of a potential loss [3, 91].

Supply Chain Security – Threats and Solutions 175

not just local or national issues [99]. Third, when conducting contingency planning, the concept of crisis management is to be included to obtain better resilience. Last, security is no longer an internal corporate question but rather an issue for all actors within the supply

[100] suggest that methods and ideas from total quality management can be used successfully to increase supply chain security. The main idea is the lesson from quality management that sample inspection is expensive and useless at the end of the production line. Just like in quality management, supply chain security becomes more effective and less expensive by implementing the right management approach, technology, and reengineering operational processes. [85] state that security should be integrated throughout the entire supply chain to be successful at a reasonable price. This opinion is supported by

Several new security programmes were launched in the aftermath of the World Trade Centre terrorist attack to protect international cargo flow from being abused for criminal (primarily terrorist) intentions without compromising supply chain efficiency. The U.S. Customs Office launched several programmes such as the Customs-Trade Partnership Against Terrorism (C-TPAT), Container Security Initiative (CSI), the 24-hour rule, etc. These security programmes address different aspects of supply chain security and target different parts of a transport chain. The link between these security programmes is that they involve all parties or stakeholders in supply chain security [104]. The effects from these programs both in order to handle security threats and their impact on different logistics processes have been addressed in a few papers [105, 106, 107, 108, 109]. [110] states that the C-TPAT certification will probably have a negative impact, mostly on small enterprises whiles large firms instead may have the possibility to trade-off the security costs with benefits related to supply chain transparency. [111] demonstrates the economical and competitive advantages for large and small shippers becoming FAST-approved (Free And Secure Trade). The acquisition of the FAST status may provide shippers with faster trans-border operations and consequently a substantial advantage on the export market [96]. [112] emphasize that efficiency and security in supply chains are closely related to each others, since higher security may reduce Customs delays. The relationship between security, efficiency and

Other types of security programmes existed before the attacks on the World Trade Centre. These programmes were designed primarily to address theft problems within the transport business (TAPA FSR and TSR, etc.) [113]. The big difference between security programmes before and after the terrorist attacks is that afterwards, authorities (mainly U.S.) took the lead in developing and implementing these programmes. Before September 11, 2001, security was something the business itself handled. The implementation of these programmes has so far

mainly occurred in the old western countries in North America and in Europe.

chain [83].

several other authors [74, 83, 101, 102, 103].

**4.11. Supply chain security programs** 

custom activities is clearly found in the AEO-program.

Today special insurance policies exist for everything from cargo damage and machinery breakdown to terrorism, war, and general consequence liability. Typically, all insist on special events to be considered valid for a certain incident. Sometimes the terms are so specific that different types of insurance are valid depending on the cause of the incident. One of the best examples is the often-conflicting terms in terrorism contra war insurance. If there is a recognized government behind the incident, then war insurance is valid, but if the incident is caused by someone else, it is the terrorism insurance policy that covers the economic impact. This also depends on the different terms that each insurance company has in their product [3].

*Transfer of risk by usage of business power*: This risk transfer strategy is commonly used between contractual partners, but is rarely mentioned because it opposes the belief that everybody wants to collaborate fairly and for the greater good [92, 93, 94, 95]. The general idea of this risk transfer strategy is to use the business power of size, information advantage, or control over a critical asset [96, 97] so the business partner can obtain a share of the business risk as a part of the contractual agreement.
