Update nr. 9

Hoffmann BV

Update nr. 9

Live a life of Riley

In February 2002 we conducted an investigation for the Vale do Lobo Group at the Algarve, Portugal. We came across some bon vivants in an environment of benefaction and luxury. As this story progresses things will become clearer.

Mr S. van Gelder, chairman of the Vale do Lobo Group and a well-known businessman in the Netherlands, called us in for advice. He had built a beautiful resort in the Algarve region and thought security had been taken good care of. Still, he wanted a second opinion. This was why he called us in. It turned out we were able to help him indeed.

Soon we visited the resort in Portugal. It looked marvellous, with beautiful villas and apartments. They are sold to private individuals who in turn are allowed to let them to third parties via one of the Vale do Lobo Group companies. It is a very attractive site: streets without litter, all facilities intact, well-maintained green spaces and so on. There are two golf courses with 18 holes, each one in perfect condition. Bars and restaurants are high-standard.

Our job, however, was to assess security. Security is taken care of by the Vale do Lobo Group itself. The resort has surveillance all year round and 24 hours a day. This is done by a team of security guards. Proprietors can also connect their security system to an emergency centre. Furthermore there are fire engines and ambulances. The security guards are trained for fire fighting and first aid. For residents who need acute medical attention, there is a medical centre attended by a team of doctors.

Safety is very important for the Vale do Lobo Group. The following example illustrates this: Vale do Lobo Group bought back one of the older villas near the sea. They had decided to demolish it. The shore is caving in due to the violence of the ocean, which in the long run could have caused the collapse of the villa.

Seeing this it was a real challenge to give a second opinion. After all, it is difficult to improve a team of professionals that has already taken into account minute details of security during construction. However, risk management is our daily work and in our assessment we still found some points that needed improvement. Among these points were the following:

  • Writing down the security policy and assigning tasks and responsibilities regarding safety to employees;
  • Improving the organisation of security by appointing an assistant-manager within the team of security guards;
  • Improving the procedures with regard to access control, follow-ups of alarm, registration of keys and personal security;
  • Stimulating the awareness of security among employees;
  • Taking supplementary architectural security measures;
  • Improving and expanding the existing electronic security measures.


This list shows our basic principle: sound security requires more than new equipment and sophisticated techniques. Key factors are the way security is organised and employees, electronic equipment being no more than a means to an end.

Furthermore, we will periodically check security at Valle do Lobo to ensure quality is maintained. In order to achieve a solid risk management, an audit will also be carried out at one of the companies during each check. Of course our consultants are enthusiastic about going back to the Algarve; they certainly do not mind working in an environment where people live a life of Riley.

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