The Alternativa-M Holding Company launched its activities in 1994, when its status was confined to a privately owned, physical security operator. Subsequently, the Company endeavored to creatively explore new areas, and succeeded in gaining a more diversified market position. Since 2000, Alternativa-M has been a Russian market premier professional in shaping crisis management strategies, offering enhanced business control support and uncovering new opportunities for clients.

At the initial phase, Alternativa-M concentrated its research efforts on gathering useful market intelligence, monitoring and analyzing competitive activity of reputable western market players engaged in protective services for many years. Throughout 1995-1996, the offices of Alternativa-M were opened in Stuttgart, Prague, Bangkok, and in 1999, in New York. The Company embarked on the road of forging closer cooperation with well-established risk consulting and investigative firms, including Kroll Associates (US), the Risk Advisory Group (UK), Global Intelligence Network (US), and Berry Moorman law firm.

After Alternativa-M accessed the international market and shared the experience of working in this industry with western counterparts, the scope of its business contacts significantly broadened and its reputation received a noticeable boost. While being continually committed to support domestic businesses, the Company also proceeded to networking with the private sector representing Russian affiliates of large international concerns, such as Adidas, IKEA, Unilever, ICS Group, Ford, Rasch, Tarkett.

As the Company became a more multidisciplinary service provider with a greatly extended pool of resources, the clients responded with more stringent requirements for their business safeguards and higher expectations for their increased needs to be met adequately. This reciprocity gave a powerful impetus to the in-depth intelligence gathering work conducted by the Alternativa-M analysts to enable them to better evaluate the processes occurring in the Russian economy and business sector.

In 1997, the initiatory move of the Company management resulted in the formation of the noncommercial Alternativa-M Business Security Holding Company which incorporated several physical security agencies, research and production organizations based in Moscow and Russian regions. Within the new structural framework, the amalgamated purpose-oriented resources presented a uniform risk avoidance capability that offered balanced guidance for comprehensive decision making.

In 1998, Alternativa-M, earlier basically restricted to protective and investigative functions, improved its market performance with an additional strength of furnishing consultancy to clients through the opening of its first consulting arm. In the year 2000, two more specialized consulting agencies were established - Alternativa-Consultinform, the Center for Investment Risk Evaluation and Alternativa-Consulting, a law firm. In 1998, Alternativa-M was enrolled in the IKD (International Federation of Associations of Private Detectives), and in 1999, it became a member of the ASIS (American Society for Industrial Security).

Throughout 1999-2001, the Holding Company extended its network of affiliated regional organizations. With the aim of protecting foreign investment in the Russian regions, several security providers were instituted under the Alternativa-M auspices in St. Petersburg, Novorossiysk, Perm, Lesosibirsk (Krasnoyarsk Territory). In December, 2000, Alternativa-M Holding Company, a new security management structure was set up in Moscow as a head office to exercise general guidance and control over the entire operations.

The structure of the Holding Company is subject to an ongoing development, as its field of competence has been expanding with an increasing momentum.

Alternativa-M Today

At present, Alternativa-M is a Holding Company made up of affiliated business units that provide an array of products and services intended to address major concerns in the corporate and personal security management.

The Company performs its functions with resort to the most updated intelligence collecting and processing techniques. The ethical code of conduct for the employees and data protection mechanisms introduced ensure that in dealing with the client the appropriate confidentiality standards are strictly observed.

The activities of Alternativa-M are not reduced to the Russian territory alone, the Company is also involved in international exchange. Alternative-M is afforded an opportunity to gain access to such sources of proprietary information that represent the world’s most reliable data bank compilers and can retrieve classified data highlighting commercial activities on the world market of both legal entities and private individuals. It allows us to represent our clients and defend their interests most effectively outside Russia, including arbitration courts there.

The management of the Holding Company maintains close cooperation with the government authorities, law enforcement agencies and power ministries of the Russian Federation.

Alternativa-M has membership with the Moscow Chamber of Commerce and Industry and the American Chamber of Commerce in Russia.

The employees of the Holding Company are involved in promoting various research and training programs and facilitating public projects. Alternativa-M is a co-sponsor of the fund to support the educational establishments, sports activities, public and religious organizations in Moscow and across Russia.

Key Areas of Operation

The network affiliated business units of the Holding offer a marketable package of services related to physical safety, consulting practice, data retrieval, legality, engineering and technological backup to support the business security safeguards.

Judging by the volume of supplied product, the highest demand exists for the provision of services/products linked to the security of private individuals, mobile and stationary targets with the employment of qualified security personnel and high-tech measures.

A dynamic impulse is imparted to the development of consulting services, including marketing surveys, instrumental intelligence and analytical support for revenue-generating undertakings, risk assessment of investment projects, crisis/emergency management plans, investigation of business reputation and financial standing of both legal entities and private individuals inside and outside Russia.

Alternativa-M furnishes legal advice to clients, provides consistent juridical assistance in transacting business, represents the client’s interests before governmental institutions and other authorities in litigation at a common or arbitration court.

The Company offers its clients a number of services unique for the domestic market, relating to such processes as corporate investigation, merger and absorption of companies, protection from infringing trademarks, risk mitigation through employee screening and commitment to due diligence principles, designing of corporate culture code for commencing businesses.

A lot of work is accomplished by the Alternativa-M personnel to promote ongoing research and instruction programs, training modules are developed for professional security management teams, reports and presentations are delivered at the higher educational establishments, relevant printed materials and manuals are released, domestic and international meetings are organized to handle the acute security agenda.

Strategic Development

The strategic development for the Holding Company is grounded on the concept of interlocking long-range objectives and strategies spearheaded to enhance its competitive ability and maximize available resources.

The top priority programs are drafted on the basis of an overall analysis of the current business environment and trends, taking into account the prevailing demand and newer market requirements for the risk mitigation products and services. Such programs include:

1. Consulting Services

   Given a steadily growing demand for consulting services addressing investment safety and corporate risk management issues, the Holding Company has decided to extend its consulting practice with existing capabilities and to allocate more finances to facilitate the planned growth of operation. This direction is attributed paramount importance and is regarded as the most promising by the management.

   A new full package of services is introduced domestically for corporate foreign clients to control their Russian operations along the following guidelines:

   • Business Process Monitoring and Inherent Risk Management
   • Complex Corporate Investigations
   • Assistance in Business/Financial Litigation
   • Verification of Conducted or Planned Activities of Partners and Competitors
   • Risk Assessment in Investment Projects and Regional Promotion Campaigns
   • Employee Screening and HR Management
   • Devising Criteria to Determine Corporate Loyalty and Adherence to Business Ethics in Personnel, Exploring Motivation and Incentives for HR Sector
   • Diagnostics and Design of Viable Corporate Culture Concepts Underlying Business Management.

   The immediate agenda includes measures to implement a project of recruiting personnel for physical security providers and in-house security operators upon request from interested corporate clients. There is an impressive evidence that such recruitment services are most likely to enjoy a stable, dynamic demand on the local market. A recruitment agency is planned to be set up in the future to accommodate the requirements of a more diversified nature.
   
   

2. Physical Security

   With due regard to the western market trends and developments persisting in the security industry, it is envisioned within the next two years to accomplish the following:

   • Provide Training to Specialists in the Operation of High-Tech Security Devices, Establish a Technical Assistance Unit Dedicated to High-Tech Equipment Installation and Maintenance
   • Offer a Competitive Security Management Product Based on the Optimum Balance between the Human Factor (Security Guards) and Advanced Technology.

   Critical importance is attached to streamlining the Head Office operation of the Alternativa-M Holding Company. Fundamental aspects are identified as follows:

   • Optimize the Corporate Management Structure
   • Upgrade Quality Standard of Services Rendered
   • Improve Professional Skills and Techniques, Apply More Efficient Training Methods
   • Control Logistics, Supervise Reserve Managerial and Security Personnel to Accomplish New In-House Assignments.

   The personnel training and retraining methods are always open to improvement. A non-governmental center to provide training for potential employees of the Holding Company security divisions is scheduled for opening in Moscow. ( Details)

   Among other priorities, the management of the Holding Company seeks to balance lower costs of services offered and higher client satisfaction standards.

   The formation of security agencies in Yamalo-Nenetsk autonomous region and Nyzhny Novgorod scheduled for 2003 is being negotiated with prospective investor and partners.
   
   

3. Technical Support

   The business units affiliated into the Holding Company are supplying a full array of traditional services related to the design, delivery, installation, operation and maintenance of security systems and technological facilities (fire security, video surveillance, access control, data protection and privacy) and telecommunication equipment.

   Much effort is constantly underway to develop better engineering and technological solutions in the industry. The adjustment of existing security systems to better serve the needs of our clients is based on the thorough exploration and testing of the most advanced market technologies. We have been cooperating constructively with a well-known telecommunications company SONERA, Finland, and XPLORE Corp., USA.

   The COMSUPER computerized personnel management system that proved to be an efficient tool in handling assignments of incumbent selection, employee career planning, build-up of psychologically compatible and conflict-prone teams to accomplish security missions at critical sites has found an increasing application through upgraded modifications.

   Our recent innovative practice has been to supply our clients with the state-of-the-art portable devices equipped with the “emergency call” function that allow to accurately identify the location of the person under remote surveillance with the help of a space navigation system and have this information displayed cartographically on the computer screen in front of the security officer in charge.

   The development of a proprietary computer technology based on the artificial intellect applications that permits to evaluate all risks under any potential scenario predictable, including most unfavorable prospects, within the shortest time and make a justifiable decision relying on the available data on how to manage the situation in the most appropriate way is nearing completion.