Security management in focus

Terror attacks a rude awakening for corporates

KOLKATA: The Mumbai siege has brought to the fore one of the deadliest threats to corporate houses, and one they can ill afford - lack of security.

Security management could well become the buzzword for Corporate India now.
The seventh act of terror in a span of 12 months — after Bangalore, Ahmedabad, Delhi, Malegaon, Assam and Agartala — has raised serious questions on security provisions by the government.

Corporates already recognise security as a key and growing vulnerability, though top on their agenda so far has been information security, says a recent report on the ‘State of Corporate Security Survey’, conducted by Mahindra Special Services Group, a leading corporate risk consulting firm and part of the $6 billion Mahindra & Mahindra group.

The human factor and risks in the physical environment have not received the attention due to them yet, the report says. The survey found executives recognising and expressing concerns on the growing instances of breach of security. In fact, over 50% of those surveyed were aware of the trend of global losses and saw this account skyrocketing in the years to come.

The reasons aren’t far to seek - among other things, there has been a notable surge in incidents that make businesses feel vulnerable from a security standpoint compared with three years ago.

Consequently, almost 98% of the corporates feel physical security must feature on the radar, as a need beyond the security personnel they employ.

Captain Raghu Raman, CEO, Mahindra Special Services Group told DNA Money over telephone that over 90% of the companies in the country have no proper security cover.

Raman was waiting outside the Trident-Oberoi complex when this reporter caught up with him on Friday. “I am waiting to identify some of the bodies here. Sorry for my being blunt, but this had to happen; it was inevitable,” he said.

“We had gone on record a few months back that the next hit will be on the economic underbelly and targets will be congregations of VVIPs, event area and hotels. Companies always had it that they would never be subject to attacks, but now it’s proved otherwise.”

Traditionally, companies have shouldered the responsibility to protect their employees. But now, they must protect their customers as well.

Corporate social responsibility isn’t enough, said Raman. “There has to be corporate social investment. Corporates have a long-term vision and it takes years to build an Ambani, Tata or Mahindra.”

According to the report, the current framework for managing corporate security is fractured and many key functionaries seem to be “living in denial,” ignorant of their roles and responsibilities in managing risk.

Indeed, at most companies, there is a fair degree of confusion in terms of who is ultimately responsible for overall corporate security - the CIO, the CEO or the Board. At times, it is even handled by the head of administration.

The report speaks of an urgent need for corporates to adopt a holistic approach in recognising and managing corporate security.

“This is not about buying securing equipment and gadgets. The hotels under attack may have had a bank of internal cameras, but they could not pick up the patterns over the last few days,” said Raman. “Corporates need to get a high-end strategy input for designing a security process.”

g_nandini@dnaindia.net