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487 2013

10.1016/B978-0-12-385057-7.00019-1

Security: The Future

OBJECTIVES

The study of this chapter will enable you to:

1. Consider the future and what challenges and opportunities will face the security profession.

2. Know what resources might be available to the security profession.

3. Discuss the critically important relationship between the public sector and private industry.

4. Understand the importance of pandemic planning and brand protection management.

Introduction In the 21st century, most of the world is concerned about terrorism. In particular the United States and other developed nations have focused resources to wage war against terrorist net works. While the federal government focuses on homeland security, with the cooperation of state and local governments, local communities must still contend with crime prevention.

Despite the efforts of law enforcement agencies, community programs and private secu rity, the crime problem continues to be a major concern for most U.S. citizens. Today, few would argue that the criminal justice system alone has been totally effective in reducing crime. In addition, declining funding for public law enforcement—as funds are diverted to home land security and the war on terrorism—has forced most law enforcement administrators to reduce services even in a time when the federal government is asking for more. Many such policies forbid law enforcement personnel from responding to or investigating certain types of crime. In fact, most local law enforcement agencies are triaging their responses, focusing and responding primarily to the most violent crimes in their communities. Hope is not lost, how ever, and to fill this void, criminal justice administrators and scholars have called for greater involvement from the private sector. This is where the security profession comes into play on the crime prevention field. A collaborative partnership among the security profession, public law enforcement, and citizens at large is necessary to protect the homeland and reduce the fear of terrorism and crime. The private sector has embraced this challenge and has responded willingly, including participating in volunteer federal programs such as the Customs Trade Partnership against Terrorism (CTPAT).

The overall perceptions of the terrorist threat and crime are important, but the economic impact on businesses is equally significant to security management and the resiliency of the business in the long run. The problem stems from the nation’s inability to find a set of accurate metrics regarding criminal behavior. Not only has the problem of economic crime continued to grow in size, it has also become increasingly sophisticated, aided by the use of computers

Fischer, R., Halibozek, E., & Walters, D. (2012). Introduction to security. ProQuest Ebook Central <a onclick=window.open('http://ebookcentral.proquest.com','_blank') href='http://ebookcentral.proquest.com' target='_blank' style='cursor: pointer;'>http://ebookcentral.proquest.com</a> Created from apus on 2020-08-22 20:35:46.

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http://dx.doi.org/10.1016/B978-0-12-385057-7.00019-1

488 INTRODUCTION TO SECURITY

(what is commonly referred to as cybercrime). For example, and since 2008, the recent rash of insider trading and Ponzi schemes are a result of major corporate and government gover nance failures. The growth of identity theft is an indicator of problems yet to come. As such, it is imperative that the security industry come up with proactive solutions to help defeat these kinds of white collar and cybercrimes, which naturally includes a reporting mechanism back to federal law enforcement agencies.

The Aftermath of September 11, 2001 In January 2003 Security Management asked security managers, senior business executives, Wall Street analysts, and others for their perspective on how the events of September 11, 2001 had impacted security. In general, their report shows that security has become more visible and important to the business enterprise. This is true not only in the corporate view of security but also in the security technology and services sector. There is no doubt that secur ity now plays an important role as part of company’s business resiliency strategy.

A study conducted for the American Society for Industrial Security (ASIS) International by Westat, Inc., ASIS found that almost 75 percent of the security executives surveyed reported no changes in the structure of security within their companies. However, almost half reported an increase in budgets. The increased budgets did not result in additional staff in 66 percent of the organizations. Some of the increased budgets went to enhance and in some cases supplant security through new technologies, but most respondents did not place equipment at the top of their lists.1

Where was the money spent? For most companies, funds were used to improve business resiliency and to update security policies that addressed issues raised in the events of 9/11. Companies with established policies spent time dusting them off and revising them for the cur rent state of threats to the business enterprise. For others, policies were nonexistent and had to be created. Policy concerns focused on suspicious packages, bioterrorism concerns, access control issues, followed by technology.2 Business resiliency and incident management also became key focus areas for companies, to include practical exercises with the support of exec utive management to ensure the resiliency of the enterprise in the aftermath of a crisis.

Private Security Resources Growth in private security is shown by increases in expenditures, employment numbers, and value of equipment. In addition, many new firms have entered the business, established firms are showing strong growth, and some Fortune 500 companies as well as foreign firms are buying security firms.

In a time when public law enforcement is experiencing little or no growth, private security directors are experiencing greater demands on their resources and professional expertise. More than half of local and central station alarm firms reported annual budget increases. The private security industry will continue to grow commensurate with the need to secure

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the business enterprise as a result of homeland security concerns. Businesses have also gone global with supply chain security now being a major remit for security managers.

To fill the gap left by public law enforcement and to help alleviate some of the public’s fears, private sector security has offered its services in a variety of areas, including private patrols of residential areas, security for courtrooms and correctional facilities, traffic control, and so on.

The private sector has a tremendous impact on crime and the criminal justice system. Therefore, it is absolutely necessary to completely understand the private sector system. In the future, the private sector will bear more of the burden for crime prevention and asset protec tion, while public law enforcement will narrow the focus of police services to crime control. Most of the security managers surveyed by the researcher were willing to accept this growing role and continue to embrace this mission even to this day.

Interactions and Cooperation Although Hallcrest II, in 1990, rated interaction and cooperation between the public and pri vate sector as good, it also noted (as did the RAND report and the Private Security Advisory Council [PSAC]) that certain impediments to interaction and cooperation still existed. These impediments included role conflict, negative stereotypes, lack of mutual respect, and minimal knowledge on the part of law enforcement about private security. As noted when these topics were discussed in earlier chapters, both private and public sector administrators are cooperat ing to try to overcome these problems.

We presented some discussion of these areas earlier in this text. The trend by the public sector to contract services or develop hybrid security operations, with greater cooperation between the public and private sectors, continues in the 21st century. According to the late Robert Trojanowicz:

One question that need not be asked is whether the trend will persist. We are already too far down the road to turn back. Therefore, the ultimate question is not whether this change is good or bad, but whether these changes will occur piecemeal and poorly or thoughtfully and well.3

Limitations of Security A great burden has been placed on the private sector. It goes without saying that some of the expectations will very likely not be met. It is impossible to be everything to everyone, especially in an area that is changing so rapidly and dynamically.

Consider, for example, the changes in technology. Security’s main purpose is to prevent losses, whether traditional, such as burglary; new age, such as cybercrime of hacking and iden tity theft; or military, as in reduction of vulnerabilities to terrorist attacks. Historically, losses were reduced through the use of various physical security devices that served as delaying devices to wouldbe intruders. As the targets for theft changed, security modified its protective strategies and adopted new security technologies.

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Today, security in many companies is truly a full lossprevention operation, and within such operations, stateoftheart and enterprisewide security systems are coupled with tradi tional security methods. Integration of security systems with data processing and other com pany operations are becoming commonplace as logical and physical security converge. As discussed earlier, the relationship between the chief security officer (CSO) and the chief infor mation officer (CIO) will need to be reinforced and clearly defined. In short, it is important that the CSO and CIO stay very much aligned regarding how to mitigate threats against the busi ness enterprise.

How effective are security devices today? Security managers would be wise to remember that no system is completely effective. A determined criminal can find ingenious methods of defeating any system. For example, consider the progressive development of lock technology. It began with a simple doorknob lock with a spring latch. As we know today, this combination offers virtually no protection from a person who wants to gain entry. The simplest and least destructive method of gaining access would be to card the lock. If this option is removed by installing a dead latch, the intruder will have to choose another means of access. Since the latch does not extend more than half an inch into the doorframe, a burglar could spring the door or twist the doorknob off to gain access to the locking mechanism. Installing a good dead bolt lock may solve this problem.

Each step that security takes requires a burglar to use more time, but the burglar is still not stopped. The burglar chooses to either cut the dead bolt or twist the collar mechanism off the dead bolt lock. Security then responds by installing a dead bolt with a slip collar (or recessed system) and a dead bolt with a casehardened core.

In most cases, if the door and frame are of solid construction (that is, metal), burglars will not attack them. But some might want company assets enough to find another method of entry. The keying device then becomes a target; key cores can be drilled or popped. Security managers who have been thinking ahead will purchase locks with casehardened drill plates, which will foil both drilling and popping. However, there is still the chance of picking the lock. But security can anticipate this possibility and install a pickresistant lock.

Has security now stopped the potential intruder? In reality most thieves would not bother to assault this level of protection; but if the target is sufficiently valuable, other alternatives exist. The thief ’s imagination is the only limiting factor.

With today’s hightech security devices and reliance on computers, a security manager can virtually eliminate any target’s probability of being attacked. The modern age has brought “Star Wars” devices such as computer accesscontrol systems based on fingerprints or voice identification, laser beam alarm systems and communication devices, and sophisticated lis tening devices and their counterparts, sweeping devices. Lighting technology has made it pos sible to illuminate areas to daylight levels with reduced costs. The list goes on, but the question remains: Why does crime continue to plague us?

The answer could lie in the fact that when professional thieves are sufficiently motivated, they will simply find a way—the professional thief being one whose job it is to steal. Or it may be because a security manager has failed to convince executives to pay for a security operation that appears to them to be an added expenditure that will not add to the profit margin. Return

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on investment (ROI) and valueadd analysis must become part of the working vocabulary of the security manager and CSO.

High technology has made the operation of most businesses much easier. The photocopier, the fax, the computer, and 21stcentury communication devices make information transfer sim pler and more efficient. This convenience has at the same time created new problems for secu rity in the areas of increased information and physical security risks, as discussed in this book.

Evolving Trends Although the security field is now composed of more than 1.1 million personnel, with the majority employed in contract security, the trend will continue toward fewer and smaller pro prietary security operations and even fewer proprietary unionized firms will hire contract secu rity or security consultants for specialpurpose projects. Contract firms will continue to merge. As noted in earlier discussions, Securitas is now the largest contractor in the United States and continues to grow by buying other firms. Hybrid security operations are now commonplace.

The testing industry, geared to preemployment, drug, and psychological testing, will con tinue to offer services sought after by the private sector. Advocates of privacy standards will continue to restrict the use of these types of tests.

The use of outside investigators and security specialists will increase. The trend will be toward a manager of security services using security consultants for special projects. However, given recent corporate scandals, such as the pretexting investigation into HewlettPackard, which brought the CEO to testify before Congress, more contract management and rules of engagement will be required in order to mitigate liability and ethical issues.

Liability costs, though remaining relatively high, will continue in the downward trend that began in 1986. The downward trend may be attributable to better prepared security managers who are learning the value of risk management, premise liability mitigation and workplace privacy.

Drug testing will continue to be a major issue for corporations. Until the nation is able to control the influx of drugs over the border, this issue will remain a legal and safety problem for many companies. The cost associated with screening can be prohibitive, and though the pub lic relations aspect of the Employee Assistance Program (EAP) cannot be disputed, there are those who are now asking whether the company can afford to spend thousands of dollars on each employee who needs rehabilitation. The question remains, what is enough?

In addition to its role in fighting the increase of economic crime in general, security will continue to face an increase in computer and informationrelated crime. As noted earlier in this text, estimates of the cost of computer crime range from $1 billion to $200 billion annu ally. On the international scale, there is more concern about security issues. The Common Market has mandated that security laws be reviewed and upgraded to bring commonality to the European Union. Many companies have established “Situation Watch” programs designed to track escalating economic, social, political situations and weather patterns that could nega tively impact a company’s employee interests and supply chain in a given region.

Terrorism without a doubt is currently the most talkedabout issue facing the nation, espe cially for companies operating on an international scale, referred to as multinationals. The

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terror of 9/11 made it abundantly clear that terrorism is truly global and can negatively affect the ecosystem of multinational companies. The continuing attacks, such as the Madrid train bombing and the Mumbai and London bombings, keeps the terrorism menace in the fore front of our minds. The 1991 Gulf War caused a growth in concern among most multinational companies. Since 2003 the war with Iraq has also had its impact on money markets around the world. Companies can protect their assets from terrorists but have little control over the impact of nations’ decisions in their efforts to control terrorist states. The key in planning antiterrorist security operations for the 21st century will be providing adequate protection without spend ing money for unnecessary security.

Convergence: Integration of Logical and Physical Security Technologies

Technology will continue to drive the integration of computers and biometrics with CCTV and access control protocols. Telephone, wireless systems and Internet protocols will be used increas ingly to connect security systems safety devices and building management. Microprocessing chips dedicated to security purposes will be embedded in equipment, resulting in smart cam eras and employee identification cards. The field of robotics will continue to grow, particularly in the area of corrections and guard operations within confined areas. Miniaturization is a growing trend. CCTV cameras the size of small packages are already on the market. Electronic article sur veillance (EAS) will continue to grow as prepared packaging becomes more prominent.

Still, integration of security technology is a continuing process rather than a single event. Though the industry has come a long way from the independent systems of the early 1990s, consultants and security practitioners continue to argue over the true extent that integration has arrived. Elliot Boxerbaum, CPP and president of Security/Risk Management Consultants, recently stated that “security [will become] just another piece of the puzzle, but at the same time its importance to the whole is increased.”4

True integration creates a myriad of potential issues. First among these is the process of giving computer “techies” control over systems that were once the domain of security profes sionals. The real end result should be cooperation between the CIO and CSO as well as firm employee policies in place that could result in termination of employment for violating infor mation technology practices.

The Future A number of years ago, Ira Somerson, president of Loss Management Consultants, provided an excellent overview of the future in his article “The Next Generation.” Security professionals must be futurists and ready to initiate and adapt to change based on the larger forces shaping the future given the turbulent world we all live in today. The following are the trends that Mr. Somerson noted. These are very much true as the author revises this section in 2012:

l Expansion of global markets and production will continue 24 hours per day across the globe.

l Multinational and multicultural workforces will be the norm.

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l Downsizing will continue. l Technology will move us into a “telehumanic age.” l Qualified workers will be difficult to find. l Religious extremists will become more prevalent. l Biotechnology will become a powerful force. l Employee loyalty will continue to erode.5

The future for the security field is very positive. Professionalization is being pursued; large sums of money are being spent to improve security and lossprevention operations. For the first time since World War II, security has found its place in business. In addition, limitations of the criminal justice system have been identified, and the resultant void is being filled with some success by the private sector. The future in private security is exceptionally bright and lucrative for the talented person who wants to do something special, especially if that person has had sound educational preparation. It cannot be underestimated that security is going global. It’s imperative for security professionals to think and act globally, with those having proven international experience competing for the best jobs. As such, international experience and exposure through personal and business travel will be important hiring criteria for the security director of the future. In short, if you don’t have it, it will be hard for you to compete for the top job!

Technology

The future for technological advances in security is also bright. In just 45 years, the security business has seen the arrival of CCTV, microwave detection systems, small portable radios and cameras, magnetic sensors, laser technology, and truly integrated computer and security sys tems. Security has taken advantage of these technological improvements through necessity— the realization that for every new piece of security equipment there is a person who, given the challenge, will find a way to subvert, bypass, or defeat it. Today’s battles with criminals are far more often battles of intellect than they are of muscle. We may eventually see security mea sures such as force fields, holographic security officers, and laser pistols. The future is limited only by the security technician’s imagination.

Combinations of biometric, electronic, and computer technologies will allow security and other management personnel to follow employees from the time they enter the facility until the time they leave it. Global positioning systems (GPS) are now available that will allow monitors to track vehicle position within yards on a geographic earth grid. The satellite technology that has made this possible also allows people with access to monitor activities across the globe.

By combining GPS and radio frequency identification (RFID) technologies, it is now pos sible for retailers to track merchandise in real time. Where is that shipment of Viagra? We can find out relatively easily. A “geofence” may also be created that would signal an alarm should a load deviate from a chosen route.

In the area of intellectual technology, the field continued its rocketlike growth from a $17 billion industry in 2001 to more than $45 billion in 2006. The strongest market will likely continue to be in security hardware and then software, with a 16 percent growth rate.6 The

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demand for technology is the result of increased interest in integration of all security operating systems to include access control, surveillance, databases, GPS, and RFID technologies.

Guards equipped with wireless handheld tablets will be able to monitor surveillance cam eras from remote locations, submit reports over WLANs, and access email and other data in real time. It will also allow them to “call up” CCTV cameras and floor plans while on scene handling a crisis situation. It is also likely that GPS technology will allow control centers to monitor guard locations for enhanced safety and accountability. Workplace privacy issues will always be a consideration when it comes to surveillance technology in the workplace.

Managers equipped with similar technology will be able to provide realtime updates or alerts to officers in the field without radio broadcasts.7 “Smart cameras” will replace traditional fixed CCTV and even today’s stateofthe art integrated systems. These almost standalone cameras will not rely on hardwire systems or computer support to make adjustments. Rather, wireless technology coupled with memory chips will allow these cameras to make decisions based on preprogrammed scenarios and send information back to the central station or to remote computer receivers carried by security officers.

The issues associated with identity theft may remain, but with the increased use of “smart cards” in place of traditional credit/debit cards, credit card operations may no longer need to retain database information on customers. Removing critical information from customer data bases will mean less critical information will be available to identity thieves.

WLANs may be improved through “meshnetworking.” Both Microsoft and Intel are look ing at ways to make the WLAN individual systems a coherent network. Issues include ways to provide proper security to wireless systems.8 The introduction of the iPhone is just a first step in this process.

The future will also bring increased use of biometrics and spending as part of the layered access security protocol.

Leadership and Management

As Tom Peters notes in his writings, the manager of the future must be able to predict and manage change.9 In fact, Peters would probably prefer the word “leader” to “manager.” The security leader of the 21st century will need to be flexible. As Thomas Sege, chairman and CEO of Varian Research, notes, “You have to approach things much more flexibly. Change can come from all directions. You can’t chart one course and hold to it. Course corrections are going to have to be made.”10

The author submits that if you are flexible you are still too rigid, as today’s environment requires the security manager to be fluid in dealing with events and incidents, in addition to being a superior communicator and problem solver. All businesses will continue to stress the benefits of cost containment management. Profit margins must be improved, and security will be expected to offer its fair share (ROI). The security manager will thus become a security pro gram educator and salesperson. Security managers must learn to sell security as though it were any other product. Because CEOs think in terms of profit, a good security manager must find ways of selling security as a costeffective return on investment.

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For example, perhaps better lighting is needed in a particular workplace. All the CEO sees is the cost for new lighting, but the security manager suggests it might reduce theft, vandalism, and accidents. Will possible savings in these areas offset the cost? Probably not in the first year! But why not project the cost of the project over five or more years? Also consider the savings in electricity costs from installing more efficient fixtures and the possible reduction in insurance rates. Now the CEO is interested. All of a sudden the investment is at worst breaking even—and it might even save the company money. The bottom line will be more important than ever.

Security managers will find that safety, architecture, consulting and engineering, human resources, compliance, transportation, telecommunications, information processing, and mar keting will demand more from the security operation and that to develop futureoriented secu rity programs, they must take an interest in these areas.

The security manager of the future must carefully consider terms such as integration, rightsiz- ing, interfacing, hybrid security systems, ROI, and reengineering. The current trend is toward down sizing and the increasing use of technology to replace or at least augment existing operations, but the future may go beyond this trend. Even as this book is being completed, more and more pro fessional employees are completing their work assignments using technology from their home offices. From a security point of view these trends offer new opportunities as well as challenges.

The Challenge of Theft

Arguably, the greatest threat for security managers will continue to be employee theft. Worker loyalty is at an alltime low. Ethical issues and a gross sense of entitlement will become impor tant for security managers to understand as they struggle to protect company information as well as physical assets. Employee theft will continue to cost businesses about $40 billion annu ally. This challenge will become more complex as cybercrime continues to grow.

Education and Professionalization

Experts predict that by the year 2020 the majority of new jobs will require postsecondary edu cation. Yet today, 20 percent of the U.S. workforce reads at no better than an eighthgrade level. This means that unless something changes, the U.S. workers of the future will not be able to read basic materials necessary to perform at the required level. The staff at Security predicts that in the future, professional organizations representing security will approach colleges, uni versities, and community colleges and ask for help with programs that train security officers and security professionals.11 ASIS has already moved in this direction with the development of master’s level education through Webster University. As mentioned earlier, the wise security professional will complement his or her accredited degrees and professional certifications with international experience and exposure.

Pandemic Planning and Brand Protection Management

Counterfeiting has become a problem for multinational companies, especially those with a recognizable brand. Make no mistake, the act of counterfeiting is universally held to be a crime around the world. Counterfeiters know that brand is important in a consumer’s choice and

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therefore target companies with a recognizable brand in the marketplace. In short, they look to duplicate or fake products of companies who operate with high margins and product run rates and generally target products that are relatively easy to duplicate. The World Customs Organization (WCO) estimates that 5 to 10 percent of all global merchandise is counterfeit. Even more alarming, the World Health Organization (WHO) estimates that 10 percent of all medicines are counterfeit.12,13

In the federal sector, for example, a 2007 study estimates that 30 out of every million $100 bills are fakes. The National Research Council believes that within the next 10 years, even lowskilled amateurs will be able to duplicate our current currency. They are recommend ing that the government incorporate complex starburst patterns that copies cannot duplicate. Other suggestions include inks that change color as they’re exposed to various temperatures.14 Regardless of the sector, counterfeiting of all types is big business. It is predicted that this illegal enterprise will continue to grow because it is generally much more profitable than dealing in drugs and much less risky.

As the world’s population tops 7 billion, the need for pandemic planning becomes even more important. In short, pandemic planning is mitigating the threat of disease such as a viral outbreak found in large population densities throughout the world. A good example of this is the avian flu outbreak in Southeast Asia. Often security management includes the environ mental health and safety remit. Therefore, it is important for the security manager to embrace this role and develop plans along with medical experts to help mitigate the threat to the busi ness enterprise.

Certification and Standards

The discussions presented earlier in this text point toward the need for some type of mandated minimum standards for the security industry. Recent developments led by ASIS point the way for some type of industryimposed regulations similar to the British system. If security is to continue to take the place of law enforcement, the field must present a professional image. The image can exist only when outsiders can view the field with the respect that comes from estab lished standards. The proliferation of certifications, if properly controlled, is a move in the right direction. Federal legislation mandating standards will hopefully lead to baselevel standards for the security industry.

Summary As stated, the future for security is bright and can be lucrative for the educated professional. The more education, certification and training become a regular part of the security occupa tion, the greater the professional development and acceptance of that occupation. It is obvious that the public sector cannot afford to pay for all the protection needed in our modern and tur bulent world. The only means of providing security as defined in Chapter 1 is through the use of private resources that keep the costs of products down and provide an environment wherein our freeenterprise system can prosper.

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Current events have definitely changed the security landscape, but as we focus on the war on terrorism, the question that needs to be answered is, “How far will the American public let the fed eral government go in mandating security measures for the public’s own good?” Years of private ini tiative in protecting one’s own property are at stake. Only time will tell where the line will be drawn. As noted in Chapter 1, there are efforts to create federal identification databases on each person. Whether this goal will be accomplished is questionable. If it is achieved, how will it be controlled?

CRITICAL THINKING Who should have the responsibility of maintaining an individual’s security: the individual or the government? What are the consequences of deciding in favor of either option?

Review Questions 1. List several major trends for security in the 21st century. Explain their significance from a

management perspective. 2. Explain the need for security managers to develop into educators and salespeople for security

programs. Give an example of how you might present a security program to your CEO. 3. What role should security play in the prevention of terrorism in the 21st century? 4. What is the future of public/private cooperation in the 21st century?

References [1] Harowitz S. The new centurions. Secur Manage January 2003:52.

[2] Anderson T. A year of reassessment. Secur Manage January 2003:61–5.

[3] Trojanowicz R. Public and private justice: preparing for the 21st century. Crim Justice Alumni Newsl Fall/ Winter 1989;V(1):2. [Michigan State University]

[4] Lasky S. The age of convergence. Secur Technol Des March 2003:6.

[5] Somerson I. The next generation. Secur Manage January 1995:27–30.

[6] IT Security Market to Hit $45 Billion by 2006. Secur Beat February 25, 2003.

[7] Technology Training Boosts Level of Service for Barton. Access Control Secur Syst January 2003:18.

[8] Jones M. Wireless meshes with its future. Infoworld March 2003:10.

[9] Peters T. In: Thriving on Chaos: a handbook for a management revolution. New York: Harper & Row Publishers; 1987.

[10] Exploring Security Trends, special report. Security 1989:2.

[11] Ibid., pp. 5–6.

[12] World Customs Organization (WCO) <www.wcomd.org>; 2009. [13] World Health Organization (WHO) <www.who.int>; 2009. [14] <www.whbf.com/Global/story.asp?S56143306>.

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