Essay About Value Of Private Security Management And Loss Of Personnel

The Value Of Private Security
Essay Preview: The Value Of Private Security
Report this essay
The Value of Private Security Management to Businesses
James P. Hogg
University of Phoenix (Online Campus)
Introduction to Organizational Security and Management
SEC-310
David D. Cornely, DM
November 5, 2006
Abstract
The value private security management brings to businesses is not limited to the
intangible feeling of safety and security in the workplace. While this is certainly an
important aspect that may lead to increased employee performance by reducing
unsafe conditions, the value of private security management can also be measured in
dollar signs. Through the use of the return on security investment formula (Barr, 2004),
business managers can understand the implications an effective security program has on
profits. This paper will explore both the tangible and intangible value of private security
management to businesses.
The events of September 11, 2001 (9/11) brought attention to the seriousness of the
threat Americans face and the consequences of inadequate security measures. As the
human toll was being calculated, one can imagine that affected businesses were also
calculating the loss of personnel, revenue and other assets. Then followed the bio-
terrorism scares with anthrax or in some cases, suspected anthrax being sent in postal
packages to various businesses and political offices. The ensuing hysteria created, once
again, a loss of personnel (some through illness, but most from fear of exposure) and a
loss of revenue. While these events had a significant impact on bringing security into the
spotlight and increased the importance of security management in the eyes of private
citizens, many businesses recognized the terrorist attacks as a “perceived risk” (Barr,
2003). This was, in large part, a result of the risk management guidance provided by
private security professionals. By avoiding excessive expenditures as a “knee-jerk”
reaction to an exaggerated or perceived risk, businesses saved money.
According to James G. Barr, author of Managing Real Risks, a perceived risk is
“something which, while possible, is extremely rare.”. Private security management
provides businesses with a source of security related expertise that can assist in
distinguishing between risks that have a likely potential of occurrence and risks that are
possible, but unlikely. This knowledge is essential for the development of the security
infrastructure framework of any business and allows security practitioners the
opportunity to focus resources on real threats, thereby maximizing the return on security
investment by providing the benefit of applicable, relevant security measures and
reducing the security related costs associated with unneeded security measures.
To further understand the value of private security management, one should
consider the “consequential costs of poor security” (Barr, 2004). The article, Seven
Strategies for Becoming a Security Leader, written by James G. Barr, identifies nine
significant costs associated with poor security. It is my opinion the first six costs are self
explanatory (loss of revenue, loss of customers, loss of business partners, loss of investor
confidence, loss of market value and loss of reputation), but the significance of the last
three may not be as easily recognized. Businesses operate with the continual threat of
potential individual or class action lawsuits, regulatory sanctions and civil (criminal in
the event of negligence) penalties. Security management, due to the inherent nature of
securitys function, can have a major impact