Global security was analyzed in a recent report by Allied Universal. According to the report, global companies lost a combined $1 trillion in revenue in 2022 due to physical security incidents. Economic unrest is expected to be the greatest security-impacting hazard in the next 12 months, a significant increase on the prior year.
The report also found 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 is likely to be the biggest external threat over the coming year. One in four (25%) companies reported a drop in their corporate value following an external or internal security incident during the last 12 months.
Economic unrest was reported by 47% as the greatest security-impacting hazard in the next 12 months. Climate change events are on the rise and the second most concerning hazard, with 38% saying they may be impacted in the next year. This was followed by social unrest (35%), disruption to energy supplies (33%) and war or political instability (32%). The threat from two groups, subversives, hackers, protestors, or spies and economic criminals, are likely to soar, with 50% and 49% of respondents predicting they will be impacted by these groups, both up from 39% in the last year.
Leaking of sensitive information is expected to be the biggest internal threat in the next 12 months according to 36% of respondents. Misuse of company resources or data was the most common internal incident with 35% of companies having experienced this already over the last 12 months.
Fraud is expected to be the biggest external threat in the next year, predicted by 25% of CSOs. Fraud and phishing and social engineering were the most common external security incidents experienced in the last 12 months (23%).
Physical security budgets at 46% of respondent companies are set to significantly increase in the next 12 months. Artificial intelligence (AI) is top of the agenda for future physical security technology investment.
Cyber threats that threaten physical security systems are challenging to operations according to nine out of 10 respondents. CSOs reported a disconnect between physical security incidents and the importance placed on them at board level; nine in 10 CSOs said company leaders are more concerned about cyber than physical security.
Eight in 10 (84%) said recruitment of security professionals will be challenging over the next five years. Nine in 10 (92%) said people skills are more important than physical attributes of strength in front-line security professionals.
Read the full report here.