According to the inaugural World Security Report, a combined revenue loss of $1 trillion was experienced by large, global corporations in 2022 due to physical security incidents. The report highlights that economic instability is projected to be the most significant security-related concern over the next 12 months, representing a substantial increase from the previous year.
The study also reveals that companies are anticipating a surge in threats and risks, including social unrest, climate change, fraud, and theft. Consequently, it is expected that budgets allocated for physical security will see substantial growth to safeguard people, assets, and properties. Security leaders are planning to channel investments towards advanced technology and enhancing the skills and training of security professionals.
In the upcoming year, fraud, defined as deceptive actions aimed at gaining an advantage, is anticipated to be the most substantial external threat, while the leakage of sensitive information is predicted to pose the most significant internal threat. The report also highlights a projected increase in risks associated with hackers, protestors, spies, and economic criminals.
The World Security Report, commissioned by Allied Universal and its international affiliate, G4S, compiles insights from 1,775 Chief Security Officers (CSOs) or equivalent positions across 30 countries. These CSOs represent large, global companies with a collective annual revenue exceeding $20 trillion, accounting for a quarter of the world’s gross domestic product. Participation in the survey was voluntary and anonymous.
Steve Jones, Global Chairman and CEO of Allied Universal, remarked, “As the world’s leading security company, we commissioned this report to benefit the entire industry and the organizations we protect. It arrives at a time when businesses worldwide are navigating increasingly intricate security threats and hazards. The research underscores the multifaceted impact of security threats on organizations, ranging from disruptions in productivity to the loss of customers and potentially staggering financial consequences.”
The report reveals that one in four (25%) companies reported a decrease in their corporate value following either external or internal security incidents within the past 12 months.
In addition to CSOs, the report also includes insights from 200 global institutional investors, aimed at understanding the repercussions of security incidents on the value of publicly traded companies. These investors estimated an average 29% reduction in stock prices in the aftermath of significant internal or external security incidents over the last year.
Ashley Almanza, Executive Chairman of G4S, Allied Universal’s international business, noted, “Global businesses are confronting heightened security threats, a competitive global labor market, and rapidly evolving technology that introduces new risks and demands different skillsets. Moreover, executive boards are wrestling with the delicate balance between physical and cybersecurity in conjunction with other priorities. The World Security Report serves to provide greater comprehension and guidance for our entire industry and the broader business community operating within the challenging, global, and rapidly changing security landscape.”