Closing the CEO, CSO Gap
by Bill Zalud
May 1, 2008
A number of
security executives routinely interact with top CEOs and top enterprise chief
security officers as a way to conduct their business and bridge the gap. Three
are Michael McCann, president and CEO at McCann Protective Services; James Lee
Witt, CEO, Crisis Management and Preparedness Services, James Lee Witt
Associates; and Howard Safir, CEO, Security Consulting and Investigations Unit,
SafirRosetti.
To complement this month’s cover story on What CEOs Think, I’ve
gathered these perspectives from the three.
Budgets
McCann – I see security budgets as continuing to
tighten (unless of course there is a major incident). Justification for new equipment and
technology will be required.
Witt – In many companies, the individual
responsible for security is also responsible for emergency preparation. This
often poses some budget overlapping, and in the current economic environment,
budgets will be getting even tighter. The company model that CEOs prefer has
become one of a minimal internal staff managing the right external resources
needed to protect the organization’s proprietary assets.
Compliance
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Those CEOs and
companies ahead of the curve will continue to be cognizant of regulatory
requirements and security’s role, commented Howard Safir.
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McCann – Now that security has a seat at the
table, CSOs will continue to be under greater scrutiny. I believe audits of their operation and
associated costs will occur more often.
Safir –
Security executives should expect regulatory requirements in security and
emergency preparedness to increase. Those CEOs and companies ahead of the
curve, however, will continue to be cognizant of these requirements and will
work proactively to identify and address gaps before they become a problem.
Companies do not want to be behind the eight ball in this regard and have to
play catch up. Being proactive will
help.
People Issues
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“The CEO is demanding more from the CSO,” said Michael McCann.
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McCann – It will be more and more difficult to
attract highly qualified and experienced candidates. RFP and bids for
outsourced security operations will be very competitive. However, with the tightening of security
budgets, companies will be more likely to accept low bids. Security companies
will be forced to pay lower hourly rates and hire less skilled workers and
invest fewer dollars in training.
Safir – Given all the areas of specialization in
fields such as business continuity, disaster management, computer forensics and
security planning, it is vital that the top security executive develop trusted
and vetted partnerships with external vendors that can provide competent and
licensed professionals when needed. Controlling supplier relationships in this
manner tends to result in better service and considerable savings beyond what a
company could maintain in-house.
Terrorism
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In the current
economic environment, CEOs will demand that budgets get even tighter, observed
James Lee Witt.
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McCann – With each emergency or incident, more
and more focus from the CEO will be directed at security operations and their
ability to deliver. Plans have been
formulated, security budgets have increased, additional personnel have been
hired and senior management has been briefed.
Importantly, when an incident occurs, top management will focus on the
incident and the response. No more
excuses.
Witt – Smart CEOs and their companies use an
all-hazards approach to emergency preparation, dedicating the appropriate
resources and energy to planning for any type of event. This preparation needs
to take place internally, as well as externally with local governments and key
vendors. The chief security officer
needs to be an integral part of the disaster management and recovery planning
process. They must work internally to put a plan in place, but just as
importantly, should become familiar with local first responders and law
enforcement personnel. You don’t want to
meet the fire chief for the first time when your building is on fire.
Management Attention
McCann – The CEO will be demanding more from the
CSO. In some cases, discussions between
CEOs will focus on a comparison to others of their respective security
operation. In particular if there is a security incident.
Witt – The events that have occurred in our country over the last seven
years such as natural disasters, terrorist attacks and regulatory compliance
should convince every CEO of the importance of having the right person at the
table to plan and manage these high-level issues on a daily basis. Additionally, a CEO’s commitment to the
security function is often demonstrated by whether or not they have someone at
the table, and the value that is placed on that individual.
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