Vulnerability Analysis

It is cheaper to mitigate threats ahead of time than to pay for a disaster after the fact.

Who will protect this business? 

The task of shrinking risk to a level we can live with falls upon the shoulders of many different people.  Some, who own businesses, must do what it takes based upon their knowledge and understanding of what needs to be protected. Others are hired to do nothing but make businesses safe and secure.  Either way, this is no easy task given the many areas of vulnerability that could be addressed.  Couple that with keeping business operations unburdened by extra security measures and you find yourself in a challenging situation.

Despite the challenge, it is always recommended that you invest in protecting your business by whatever means are available.  And given the variety of assets that need protected – from people to trade secrets – it sometimes takes an expert to get the job done.  Even though it is your business or your purview, obtaining an outside perspective can be healthy and wise.

Protect the front door, the back door or both?  

One of the challenges in protecting a business is first identifying what needs protected.  It may not be as obvious at you think.  This is especially true if your focus is on running the business and making money.  In the big scheme of things, you know your competitive advantage needs to be protected.  This is also true for your physical property and your people.  But what may not be obvious is that all three interact to some degree.  What that means is that any valid security solution will need to encompass and integrate all aspects of your operation.  This is where a vulnerability analysis comes in handy.

A good starting point.  

In general, a vulnerability analysis is a top to bottom, front to back review of your physical plant and your associated safety and security program.  In addition to the physical make up of the property, the analysis looks at elements like technology, behaviors, patterns and adherence to procedures. With established programs, the analysis is able to review current standards and practices for practicality and effectiveness. For businesses without plans in place, it is a good starting point because it starts from scratch and finishes with a complete picture of where you are and where you need to go.  

The right approach with fringe benefits.  

Certainly, a vulnerability analysis of your business can lead to a safer and more secure environment.  Safe and secure is desirable for obvious reasons. What might be overlooked is that with these attributes, you are likely to see better performance from your staff.  This has also been shown to be true for learning environments.   So investing in protecting your business unburdens your employees from distracting concerns and frees them up to focus on the job for which they were hired.  

Commitment needed up front.

Contracting with a safety and security expert to evaluate your business is a wise investment.   And if you do take this step to protect your business, here are a few things to keep in mind:  

• Be prepared to be challenged by the findings.    Sometimes overlooking the obvious is embarrassing but good leaders know they are not perfect and that professionals are out there to help, not hinder. 

• Commit to making the recommended changes.  If you cannot get to them all right away, start somewhere and build on it. It’s okay to take it one step at a time, just keep moving forward.  

• If you budget for a vulnerability analysis, make sure you have funding left over to cover upgrades.  While you don’t know what will be discovered during the review, some changes may be critical and need to be installed quickly.  

• Use the analysis to create a new awareness of safety and security. Many changes are dependent upon human compliance.  You may have to enforce changes initially to mold the culture but eventually it will become habit for your employees.

• Safety and Security is an ongoing endeavor.  Use the vulnerability analysis to make a plan.  Review it regularly and involve other employees in the process.  Finally, track your progress toward meeting your safety and security goals.  If you don’t measure, it won’t happen.  

Armed Guards

Lethal Weapons Training Essential to Professional Protection

Always needed throughout time

Secure environments are essential to the smooth operations of schools, businesses and other institutions.  And since there are many ways to create secure environments, it is worth understanding a few security applications. As it relates to people providing protection for others there are centuries of experience from which to draw.  Some form of human protector has always been around and despite the advances in technology, the tried and true security officer remains a staple.  Knowing a little bit about guards can help create an advantage when seeking security options.  

Image from: http://www.vroma.org

Levels of protection to choose from

It is understood that part of a guard’s role is to act as a visible deterrent.  And depending upon the perceived vulnerability and the value of what is to be protected, the correct level of guard sophistication should be applied.  Some situations need a guard just to be a physical presence who can monitor the comings and goings of people and control access.  Add a uniform to that guard and a projection of authority enhances the deterring effect.  When you add a gun to a uniformed guard you are now projecting force.   If the guard is to be armed, the stakes are higher as the asset to be protected is deemed valuable. That should mean the abilities of your guard force will match the relative value of the asset.  

A higher standard is required

In 1974 the state of Pennsylvania passed a law called 

The Lethal Weapons Training Act” or “Act 235”.  This law “[Provides] for the training and licensing of watch guards, protective patrolmen, detective and criminal investigators, carrying and using lethal weapon in their employment…”  It was enacted after tragic incidents continued to occur in this industry due to insufficient education and training about lethal weapons.  

As a Certified Lethal Weapons Training School, Armor Security Training Institute has trained over 12,000 individuals in this 40 hour course since 1983.  The training exposes the student to applicable laws, firearm instruction and live fire training.  

Training raises the bar and weeds out the inept

As a supplier of armed guards, this training has enhanced the professionalism, accountability and competence of our security officers.  It also reinforces the high standards of personal character and ability required to be an armed protector.  This is an advantage for business owners and institutional operators who require armed protection of their most valuable assets.  

Do you need this level of protection? 

Here are a few items to consider when you are thinking about enhancing your security with an armed guard:

1. Consult with an expert.  You may perceive threats but you cannot articulate them.  Armed guards are not always the best choice.  
2. Consider what could happen when protecting assets with deadly force and understand potential legal consequences.  Human life may be at stake.  
3. Knowing how to use a gun is one thing.   It is another thing to project competence and confidence.  Make sure the armed guard can do both.  
4. A gun is a tool that requires special training and repetitive use to become proficient.  Make sure your guard continues to hone his craft. 
5. Make sure your guard has any training that is required by law.   
6. Make sure your contractor provides oversight and ongoing training of your armed guard.  

Securing Your Business

Aligning security efforts with business goals sharpens results

Hindered by stale perceptions

For some business thinkers, security expenditures remain an overhead that falls into the category of "the cost of doing business".  But getting past the old standard of thinking of security as a necessary evil to embracing it as a valuable business asset means shaking off an outdated understanding of what needs protected. Security programs that can recognize new and developing threats do well to preserve their relevance.  But the programs which also tie in business acumen are that much more valuable.

It is only getting bigger

The industry expects operational security spending to continue to increase over the next 5 to 7 years. Reasons for this trend include the continued globalization of operations and work force growth.  There is also an increase in the frequency of disruptions encountered by businesses on many fronts. From agenda centric movements to domestic violence, these diversions consume time and money for businesses.

Security is just like any other business unit

Given the growth in security expenditures, it is evident that a more sophisticated view of security is required. Fortunately, aligning the operational needs of a business and its security requirements is no different than any other business evaluation.   The first step is to match security efforts with the goals of the business.  And once established, they need to be measured in order to manage their performance.  This is simple shift in thinking coupled with bringing security considerations to the boardroom can expand its value proposition beyond being compulsory. 

Experts in security must be business centric

To elevate security thinking to the point where it is considered a profitable endeavor it is first necessary to evaluate business vulnerabilities at a high level.  C-level thinkers need to synthesize diverse variables including financial goals, risk aversion, technology, market trends and ROI to come up with a risk profile for their company.  On a technical level, security consultants such as CSI must be able to understand the high level perception of the risks and then apply the correct security solution to the problems.  Additionally, the solution must be measurable so it can be proven to be worthy over time.  It must also be dynamic in that it can change (rapidly if necessary) to meet the ever changing risk landscape.

Picture from sporcle.com

Expanded security coverage

While turnstiles and night watchmen will probably always exist, modern security thinking goes well beyond this paradigm.  The competitiveness and complexity of business today has pushed security professionals into new disciplines.  Here are a few examples of critical business needs that are now met by security programs:  

1. Protection of intangible assets. More companies than ever are defined by their intellectual property or their brand reputation.
2. Natural and man-made disasters. A recent study revealed that almost half of all major companies do not have a business continuity plan.
3. The remote workforce. Technology has freed these workers from a controlled office setting.  Companies must now consider the safety and security of their mobile human assets.  
4. Business partner risk sharing. Interdependent companies need to communicate and coordinate security responsibilities. This is especially acute in supply chain oversight.  
5. Security Technology. Data in the form of camera analytics and biometrics do more than protect.  Businesses now leverage intelligence gathered from these platforms.

Savvy business thinkers will find value in their security programs by turning their efforts into a competitive advantage.  But once security has a seat at the table, it is no longer business as usual.  Dynamic results will be demanded as programs must not only protect the business but prove their worth though measurable outcomes. 

Self-Insured Companies Might Be Ahead of the Curve

Insurance Industry Financial Challenges Provide Opportunities for Companies to Save Money

Rising Costs: A Sign of the Times

Business owners know that rising insurance costs are part of our daily conversation.  Factoring this into the algorithm that computes the bottom line is a variable like no other.  The upward trend is real and understanding why it is climbing deserves our attention.  A white paper by Forbes Insights released in September of 2013 addresses several reasons why rates are rising and not surprisingly, they are complex and intertwined.  Fortunately, there are strategies to help mitigate these costs but understanding the basic causes may help you find the greatest savings opportunities.  

Challenges Faced by Insurance Companies 

For insurance companies, the days of relying on investment income to support operating costs and earnings are long gone for now.  As a result, pricing discipline, which has been lax in the past for the sake of market share, is back in vogue.  That means a focus on underwriting which necessitates higher premiums for consumers.

The trend toward higher premiums is predicted for some time.  The impacts of recent governmental regulation coupled with a weak economic recovery will take awhile to play out.  And even when the rate of investment returns does increase, the payoff for insurers is a long way off.  

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Another financial challenge for the industry is the rising cost of healthcare. This is acutely felt by property and casualty insurers in the worker’s compensation marketplace.  Statistics reveal the cost of medical care has risen over 380% since 1981.  Since this rate outpaces other costs, the disproportionate medical fees are forcing insurers to stabilize their finances by passing this on.    

Industry insiders also observed that claims tend to be extended during a weak economy.  In other words, when there are fewer employment opportunities available, people remain on claim longer.  This trend raises litigation costs as well as settlement costs for insurers as they have to work harder to get people off of claim. 

Conditions Create Opportunity

As premiums rise, consumers of insurance products will be looking for alternatives.  Some companies will also move away from traditional insurance and explore becoming self-insured.  This move, however, will force these companies to take a hard look at their own risk management practices in an attempt to lower their exposure characteristics.  

Self-Insured Companies Stay Ahead

As it relates to risk management, CSI has many self-insured companies as clients.  In particular, CSI’s surveillance division helps self-insured businesses resolve their Worker’s Compensation claims.  For many of our clients, we have become an integral part of their insurance risk management team.  Here are some observations of what a mature relationship looks like when we partner with our self-insured clients.  

1. They ensure that their claim administrators have an anti-fraud, waste and abuse (FWA) plan. 
2. They ensure their claim managers know red flag indicators of FWA and how to react to them.  
3. They are prepared to protect their fund from FWA by investigating suspect claims. 
4. They trust our expertise in surveillance operations and expect us to maximize their investment in resolving the claim.  
5. They understand that surveillance is just one tool used to investigate the legitimacy of claims and/or the actual condition of the claimant.
6. They know that fraud is determined in a court of law and not in a claim office.  
7. They only use surveillance results to evaluate the merits of the claim.  
8. They treat surveillance results as being highly confidential and only the people who need to know have access.  

We find that our best self-insured clients have chosen competent administrators who manage their fund.  We also note that these companies are genuinely concerned about their employees’ well-being and are aware of claim outcomes.  However, they also set the tone that abuse of benefits will not be tolerated.