Canadian Security Magazine

Allied Universal report suggests security incidents cost global companies US$1T in lost revenue

By Canadian Security Staff   

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Allied Universal and its international business G4S recently issued a “World Security Report,” indicating that physical security incidents cost global enterprises a combined US$1 trillion in lost revenue last year.

The report documented the opinions of 1,775 chief security officers (or their equivalents) across 30 countries working for large companies with a combined annual revenue in excess of US$20T.

Respondents identified a broad range of threats, including social unrest, climate change, fraud and theft. The report suggests that physical security budgets may rise significantly to keep pace with these potential hazards, with security leaders focusing their investments on technology and additional training.

The report “comes at a time when organizations across the globe are increasingly navigating more complex security hazards and threats,” said Steve Jones, Allied Universal’s global chairman and CEO, in a statement. “The research shows the impact of security threats on organizations is multidimensional​ – from the disruption of productivity to the loss of customers, to the potentially staggering financial impact.”

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One in four companies responding to the survey reported a drop in corporate value after a security incident (internal or external) in the last 12 months. Two hundred global institutional investors were also surveyed for the report — they estimated an average 29 per cent drop in stock price in the wake of such incidents.

“Global businesses are facing increased security threats; a tight labour market globally; and rapidly changing technology that presents new risks and requires different skills. In addition, executive boards are grappling with balancing physical and cybersecurity alongside other priorities. The World Security Report helps our entire industry and the wider business community better understand and operate in the challenging, global and fast-moving security landscape,” added Ashley Almanza, executive chairman, G4S.

Other key findings from the report include:

  • Economic unrest was reported by 47% as the greatest security-impacting hazard in the next 12 months
  • Climate change is the second most concerning hazard, with 38% saying they may be impacted in the next year
  • 36% of respondents said leaking of sensitive information is expected to be the biggest internal threat in the next 12 months
  • Approximately half of respondents predicted they will be impacted by groups the report identified as subversives, hackers, protestors, spies and economic criminals
  • In terms of technology investments, AI topped the list with 42% intending to invest in AI and AI-powered surveillance over the next five years
  • 84% of respondents said recruitment of security professionals will be challenging over the next five years

 


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