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CEO Security Headache: Anti-western Hate

July 26, 2007

Since 9/11, dealing with terrorism, pandemics, other unimaginable events, as well as technology hackers, and physical asset security, is top of mind for business executives. Driven by globalization, new approaches will be necessary if businesses are to remain sustainable in the face of an ever-widening spectrum of possible threats. These sentiments are echoed in THE SENTINEL CEO: PERSPECTIVES ON SECURITY, RISK, AND LEADERSHIP IN A POST-9/11 WORLD (John Wiley & Sons; $29.95; July 2007) by William G. Parrett, DTT Senior Partner, and former Global CEO Deloitte, who candidly shares the thoughts of CEOs around the world on their new approaches to corporate security and risk management. The book suggests change is underway: risk management is evolving to become integrated into a company’s strategic activities and corporate culture, more lateral thinking to imagine the unimaginable is emerging, and companies are dealing more and more with anti-western sentiments. Filled with the perspectives of leading CEOs, security experts, public officials, and academics from various backgrounds, this new release underscores how a corporation’s core values can help them address and recover from unforeseen threats, and how organizations that are most effective and efficient at managing risks in a holistic sense, in terms of both existing assets and future growth, will, in the long run, outperform those that are less so. According to the author, to help preserve value, companies need to go beyond managing risks in silos and create an integrated, organization-wide risk management function. Although risk can never be eliminated, companies that implement a more comprehensive approach to their control environment will be better placed to prevent, minimize, or recover from losses in shareholder value. From alternative supply chains and disaster planning to globalization strategies and employee safety, the notion of risk/security management is constantly evolving. Unfortunately, admits Mr. Parrett, currently few companies manage the full spectrum of risk or adequately assess and address risk intelligently from all perspectives and quarters. THE SENTINEL CEO features timely discussion of growing anti-American sentiment, the avian flu, and immigration, among other critical business risks. It also analyzes several strategies for the CEOs of global companies. This includes a look at the holistic approach to security and risk management, a framework for managing security and risk, a definition on the challenges of globalization, a comparative perspective of China and India, and the need for managing America’s brand and image, and security, immigration and education. The book, also provides a high-level overview of the technical competency to deal with threats, and responds to the following questions: What kinds of new strategic decisions are CEOs making? Are CEOs running their companies differently? Who are they relying on to identify threats, assess security, and protect their company’s human and physical assets? What is their take on the new challenges the global war on terror is creating for today’s business leaders? Executives admit that they have experienced additional expenses in defining risk more broadly and extending preparedness to address more possible events, but Parrett suggests that such expenditure should be viewed as an investment that can reap great rewards when the unforeseen or unexpected happens. The book proposes that for management and boards of global corporations, risk management must now become an essential part of preserving and protecting shareholder value and thus must be a strong focus for CEO and executive attention. Ultimately, all the executives interviewed in the book agree that risk management is currently a critical issue for CEOs and boards as regulatory authorities and exchanges promulgate new disclosure and listing requirements that require more explicit information on risks and the risk management practices of the firm. ABOUT THE AUTHOR: William G. Parrett is the former Chief Executive Officer of Deloitte Touche Tohmatsu and now Senior Partner. In a career spanning nearly four decades, he has served many large national and multinational businesses. He co-founded the Deloitte Global Financial Services Industry practice and served as its first chairman. Parrett is a member of the International Business Council of the World Economic Forum. He is an executive member of the International Chamber of Commerce, and serves as Chairman for the United States Council for International Business (USCIB) and as an International Councilor for the Center for Strategic & International Studies (CSIS). A long-time advocate of community service, Parrett is a member of the Committee to Encourage Corporate Philanthropy (CECP), and the G100 Group. THE SENTINEL CEO Perspectives on Security, Risk, and Leadership in a Post-9/11 World Published by John Wiley & Sons, Inc. Publication date: July 6, 2007 $29.95; Hardcover; 208 pages; ISBN: 978-0-470-12541-0

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