The first ever World Security Report has revealed that large, global companies lost a combined $1 trillion in revenue in 2022 due to physical security incidents. Over the next 12 months, Economic unrest is expected to be the greatest security-impacting hazard, which is a significant increase on the prior year.
The report also discovered that companies anticipate a surge in threats and hazards like 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®, the world’s leading security and facility services provider, 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. 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,” said Steve Jones, Allied Universal’s global chairman and CEO.
One in four (25%) companies reported a drop in their corporate value following an external or internal security incident during the last 12 months.
As well as CSOs, the report also surveyed 200 global institutional investors to understand the impact of security incidents on the value of publicly traded companies. Investors estimated an average 29% drop in stock price in the wake of a significant internal or external security incident in the last 12 months.
“Global businesses are facing increased security threats; a tight labor 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,” said Ashley Almanza, executive chairman of G4S, Allied Universal’s international business.
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