HOMELAND SECURITY
Allied Universal releases World Security Report 2023 According to the first-ever World Security Report, large global companies lost a combined $1 trillion in revenue in 2022 due to physical security incidents. Economic unrest is expected to have major security impact over next 12 months. In addition to economic unrest, the report also found that companies anticipate a surge in social unrest, climate change, fraud and theft. As a result, physical security budgets are predicted to increase significantly to keep people, property and assets safe. Security leaders intend to focus investments on advanced technology and providing security professionals with additional skills and training. Fraud – deception intended to result in gain – is likely to be the biggest external threat over the coming year. The leaking of sensitive information is predicted to be the biggest internal threat. Dangers posed by hackers, protestors, spies and economic criminals are expected to soar. Commissioned by Allied Universal and its international business, G4S, the World Security Report documents opinions of 1,775 chief security officers (CSO) or those in equivalent positions from 30 countries. Working for large, global companies with a combined annual revenue of more than $20 trillion – a quarter of the world’s gross domestic product, CSO participation was independent and anonymous. “As the world’s leading security company, we commissioned this report for the benefit of the entire industry and the companies we protect,” said Steve Jones, Allied Universal’s global chairman and CEO. 40
“It comes at a time when organizations across the globe are increasingly navigating more complex security hazards and threats. 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.” Among the report’s high-level findings: • More than USD$1 trillion in revenue was lost by companies as a consequence of physical security incidents in 2022. • One in four (25 percent) publiclylisted companies reported a drop in their value following a physical security incident over the last year. • Institutional Investors surveyed estimated an average decrease in value of 29 percent for publicly-listed companies due to a significant security incident in the last year. Security-impacting hazards The report found that economic unrest will be the biggest securityimpacting hazard over the next 12 months – this was according to nearly half of CSOs surveyed. Asia Pacific and Sub-Saharan Africa are anticipated to be the most impacted regions in the world. After economic unrest, climate change is anticipated to be the
second greatest hazard by 38% of participants. Social unrest is expected to pose a threat by 35 percent of CSOs, up from 31% the previous year, and one third of CSOs expect disruption to energy supplies to impact security. Unsurprisingly, 32 percent of respondents indicated that the threat from war and political instability is also likely to increase, up from 25 percent last year. Interestingly, the biggest hazard last year was pandemics reported by 42 percent of those surveyed. Internal threats Internal threats are expected to increase next year, with 92 percent of CSOs anticipating their company will be targeted. Misuse of company resources or data was identified as the most common internal threat by 35 percent of respondents, followed by leaking sensitive information at 34 percent, which is on the increase – particularly in the Asia Pacific region. Unauthorised access to company resources or data, industrial espionage and intellectual property theft are also all expected to increase in the next year. While misuse of company resources or data was the internal incident most likely to have driven companies to improve their security in the last 12 months. Line of Defence
