October 31, 2003—A survey sponsored by the Council on Competitiveness found that 88 percent of senior business executives rate security as a top or high priority for their company. Almost two in three (65 percent) surveyed executives report their companies have adopted new security standards in the past 12 months.
These new security initiatives are increasingly seen as a good investment. Seventy-one percent of business leaders believe security initiatives will yield positive returns on investment due to increased business continuity and efficiency. This statistic represents a dramatic increase from last year when just 24 percent believed new security initiatives would create a positive return.
“This is a key result,” said Council president, Deborah L. Wince-Smith. “The nation cannot secure the homeland without the participation of the private sector, and the private sector may not respond fully unless there is a business case to support it.”
The survey also indicates that companies have stepped up the pace and scope of vulnerability assessments. Eighty-three percent of companies have conducted risk assessments in the past 12 months in at least two of the following three areas: physical security, IT security, financial management. A similar Council survey conducted in September 2002 found that only 34 percent of companies had conducted risk assessments.
Companies report taking a much closer look at critical infrastructure—a key concern of the Department of Homeland Security. In a 2002 survey, less than 40 percent of companies reported risk assessments in electronic communications, electrical power connections or telecommunications. Today, business is focused on the interconnectivity and interdependence of networks: 71 percent have conducted comprehensive assessments of electronic communications, 68 percent of financial assets and 58 percent of telecommunications and electric power connections.
A majority of business leaders (63 percent) contend that the private sector should take the lead in setting new standards for security. Yet, the survey also indicates that company executives are unsure as to whether their actions to increase security are the right ones. Only a third (34 percent) believes their company’s security standards represent best practices.
Companies remain concerned about the potential for regulation by, rather than in cooperation with, federal and state governments. Although survey results indicate that a majority of companies (57 percent) believe the public and private sectors should share equally in responsibility for homeland security, 52 percent of the executives surveyed believe new state and/or federal regulations will be passed in the next 12 months.
Wilson Research Strategies, an opinion research firm based in McLean, Va., conducted the survey of 317 senior U.S. corporate executives from September 22 to October 1. The corporations in the study represent a cross-section of industries with average annual revenues exceeding $200 million. A summary of the findings of this survey can be found from the Council on Competitiveness or from Wilson Research Strategies.
