August 1, 2003—In a process termed “evolution rather than revolution,” corporate Americas overall spending on security in response to terrorism has increased only modestly, The Conference Board reports in a comprehensive new study, which was sponsored by ASIS International (ASIS).
The research report, entitled Corporate Security Management, shows that the median increase in security spending is 4 percent since September 2001. Seven percent of the companies surveyed have increased their security spending dramaticallyby 50 percent or more. Most likely to have permanently increased their security spending are those in six “critical infrastructure” industriestransportation, energy and utilities, financial services, media and telecommunications, information technology, and healthcare.
The study is based on a cross-country survey of more than 331 business security directors, risk managers and information technology security officers. More than half of the companies covered in the study generate more than $1 billion per year in sales.
The Conference Board is a non-partisan, not-for-profit business research organization. ASIS International, the worlds leading society of security professionals, many of them senior corporate security executives, sponsored the security study.
While many security experts anticipated a widespread move to centralize security operations in the wake of terrorist actions, the study found that most companies have not changed the way they manage security.
Only 24 percent of them have centralized security responsibility in a Chief Security Officer and few apparently are interested in creating this relatively new position. Most companies employ less than 50 people to oversee all their security needs, though many use outside security consultants and guard forces to augment their staffs.
The study also found soaring increases in corporate spending for insurance and risk management. It reports that median spending for these two business essentials are up 33 percent. About 20 percent of the companies say their insurance costs have at least doubled since 2001.
For more information, contact ASIS.
