Security Concerns During Tough Economy

Posted on January 21, 2009
Filed Under Sustainability in a Downturn, business security concerns | Leave a Comment

A lot of what we have focused on thus far has been focused on managing people, developing strong leadership and improving business processes. Strong talent management and human capital are crucial, especially during uncertain economic times.

However, in addition to working on improving your business model and maximizing your competitive advantages, you as a business owner also have to keep in mind some of the darker sides of business when times are tough. For example, the Wall Street Journal is reporting that white collar crime is likely to rise as the economy continues to put pressure on consumers.

From the Wall Street Journal:

“NEW YORK (Dow Jones)–The number of white-collar crimes could jump significantly this year as economic and financial-market turmoil lead many to deviate from moral and proper activities to keep up a revenue stream or make a quick buck, a new study says.

“It’s a different world out there, and fraudsters know it,” New York-based risk consultancy Kroll Inc. says in its Global Fraud Report, released Wednesday.

“Kroll warns, among other things, about an unscrupulous form of short-selling in which brokers and traders form “loosely organized cartels” to start negative rumors about companies whose shares they are betting against.”

For smaller businesses, white collar crimes can include cash or supply theft, misuse of company credit accounts, or, in severe cases information theft or security breaches. As local security expert Jim Crumbley from Risk Response Team said in a recent interview:

“Companies seldom have the time or resources to create a fully integrated and focused risk mitigation strategy,” Crumbley explains. “Many companies are not even aware of their susceptibility to many of these problems, as most of their focus goes to business operations more associated with daily function and financial performance. Those that do try and manage these issues often have several departments addressing bits and pieces with little coordination, efficiency or workable strategy.”

According to security consultant Jim Crumbley, recent research has identified the following as the top ten current security threats to businesses:

  1. Workplace violence
  2. Business continuity
  3. Computer Crime
  4. Global and Domestic Terror
  5. Employee Screening
  6. Fraud/White Collar Crime
  7. Employee Theft
  8. Business Ethics
  9. Drugs and Alcohol at the Workplace
  10. Identity Theft

Although businesses may think that they are immune to such risks, the residual effects of security breaches can be far more costly and long lasting than the initial costs of performing a threat evaluation and establishing a risk mitigation program.

Read the full article: “How Secure is Your Business?“

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