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January 15, 2010 - In the spirit of those historically revered, and simultaneously dreaded New Year’s resolutions, let’s examine seven security objectives that every corporation engaged in global trade may want to consider in 2010.
Repeat after me: “We, the ever vigilant and thoroughly conscientious corporation of ______________, do solemnly and dutifully, without mental reservation or purpose of evasion, resolve to:
1. Support government policies and initiatives that have the potential to mitigate threats to global trade while facilitating the free flow of commerce.
The now infamous government battle cry of “mitigate and facilitate” remains an elusive goal, but represents a truly a noble objective. One that makes very good common sense - since the public and private sectors are hopelessly locked in a necessary but awkward embrace, where global trade security is concerned. Both the government and corporations can and should benefit from true collaborations that mitigate threats to global trade without hindering the normal, operational tempos required for supply chain efficiency.
2. Establish policies and procedures that enable the rapid resumption of trade following a disruptive security event.
The drumbeat in favor of aggressive and comprehensive business continuity planning has been beating loudly for several years now. Has your firm actually established a realistic plan to reconstitute business operations following a major disruptive event? Has this plan been exercised and promulgated to all concerned parties and shared with key business partners? If not, add this to the action plan for 2010.
3. Build trusted relationships within the global trade community that enhance security policies, procedures and systems.
The time to be handing out business cards is absolutely not at the press conference following a business emergency. Are you comfortable that your company has established and cultivated close working relationships with all key business partners that will come into play in time of a crisis? Do your employees, suppliers and transportation providers know what to do and who to call in the case of a major disruptive event. If not, tell them now – in this new year. Build the relationships you need to survive before the incident occurs…it may be too late afterwards.
4. Support global standards that enhance trade security by promoting competency and predictability.
Competent leadership requires clearly defined objectives, and a carefully planned strategy to achieve them. Security is no exception. Use 2010 to establish guiding principles for security at your firm. Encourage the application of standard security practices throughout your business enterprise. And demand compliance from your key business partners. You are only as strong as your weakest business link – make sure the entire chain is solid this year.
5. Verify and validate key business partners.
This concept is perhaps the most obvious and ironically the most often overlooked aspect of operating securely. Do you have the requisite amount of visibility into your key business partners? Are you confident that you are not introducing security vulnerabilities in to your business processes by working with risky partners? Can you efficiently and continually verify and validate the security posture of your key suppliers? If the answer to any of these questions is no, take the necessary steps in 2010 to close those gaps and establish a legitimate and verifiable security threshold for key business partners.
6. Mitigate risk through efficient acquisition, analysis and validation of cargo and passenger data.
Ignorance is definitely not bliss with regard to passenger and cargo data. It is essential that companies in the business of transporting either, or both, have the requisite information required to make informed and proactive risk management decisions. If your firm does not possess the necessary tools to ensure adequate supply chain visibility for risk management purposes, resolve to reconcile that discrepancy in 2010.
7. Invest in technology applications that facilitate risk management.
Finally, technology is more friend than foe when it comes to security and risk management. Does your corporation consider security to be an investment, or an expense? Can appropriately employed security technology solutions provide a real return on investment? Many would argue that they can. Don’t miss the opportunity in 2010 to provide your firm with a competitive security advantage. Make a commitment to procure and field at least one enabling security technology solution this year. Then establish metrics for the performance of that solution, and determine if it provides a meaningful return. If the answer is yes…repeat the process!
Sure, these objectives are much more easily said than done, but that’s why we often have a love-hate relationship with our New Year’s resolutions. The effort and investment required to pursue enterprise risk management objectives can be a tough pill to swallow – particularly bitter medicine in tough budgetary times. But consider the alternative.
According to Security Director News, more than 50% of security practitioners have already experienced budget cuts due to the recent global economic downturn. Ironic perhaps in light of the fact that the Center for Retail Research “2009 Retail Theft Barometer Report” reported that $42.2 billion was lost in 2008 due to retail crimes…a number that included shoplifting, employee theft and supply chain security-related loses.
Whatever your corporate financial position may be, consider using the New Year as a pivot point for security and resilience. Pick an objective or two and resolve to be more secure in 2010. Use your New Year’s resolutions for security as the starting point for creating a culture of resilience at your firm. Decide that it’s important to manage risk before it manages you. Commit to treating security initiatives as an investment not an expense. And lead your company toward a path of organizational resilience and long-term stability.
(Previously published in iJet's January 2010 newsletter.)
Luke Ritter leads the Global Trade Security practice at Ridge Global. He is a member of iJET’s Transportation Intelligence Advisory Board and is the co-author of Securing Global Transportation Networks: A Total Security Management Approach (McGraw Hill, 2006). He can be reached for comment at: lritter@ridgeglobal.com.