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Creating Continuous Risk Improvement Through the Next Decade
orHow We Made it to 2020
and Lived to Tell the Tale
Francis D’Addario CPP CFEEmeritus Faculty Lead, Strategic Influence and Innovation
Security Executive [email protected]
©2010 Security Executive Council www.securityexecutivecouncil.com Content cannot be copied, distributed, or republished without written permission.
Agenda• Past is Prologue - History Informs All Hazards• Not a Moment To Lose – A Call to Action• Global Economics, Board Level Risk, Confidence• Risk Preparedness, Response & Brand Reputation• Assessing Organization & Leadership Readiness• Security 2020™Initiative – Tooling-up for Cross-
functional and Inter-generational knowledge• Translating an Elevator Speech to Contribution
©2010 Security Executive Council www.securityexecutivecouncil.com Content cannot be copied, distributed, or republished without written permission.
Past is Prologue
Climate Change Contagion
Geo-political Intrigues Catastrophic Accidents
Geologic Events Information Loss ©2010 Security Executive Council www.securityexecutivecouncil.com Content cannot be copied, distributed, or republished without written permission.
2009 Not a Moment To Lose…Global Violence Epidemic? World Health Organization
Supply Chain Theft Up 67% Freightwatch International
Global Retail Loss Up To $45.99B 3rdAnnual Report
US Identity Theft and Fraud $54 Billion Javelin
Global Cyber Crime Estimate: $1 Trillion McAfee
Officials Warn Terrorism Threat “Imminent” Wall Street Journal
Consumer Confidence at Record Low Market Watch
U.S. Workplace suicides surge 28% US Bureau of Labor Statistics
2010 World Economic Forum
Board-Level Risk • Brand Reputation &
Ethical Conduct
• Legal , Regulatory Compliance; Standards
• Business Continuity
• Financial Integrity
• Information Integrity
• Physical Premises Protection
• Product and Supply Chain Integrity
• Human Capital
Brand Expectations• Ethical management of all hazards before, during, and
after high risk events• Reasonable compliance with
relevant standards
• Capacity to mitigate impact of manmade and natural disasters for resilience
• Diligent reporting of assets, inventory, sales/profits, fraud,
theft, or other relevant data• Compliant, effective data
protection • Safe and secure venues for foreseeable risks to people ,
processes, and assets• Reasonable assurance of
high-quality, 'just in time' products or services
• All hazard awareness, preparedness, risk detection & response for “culture of care”
Risk Mitigation Solutions• People, products, assets and critical process protection
(products and services) within ‘good’ or ‘best’ benchmarked practices
• Compliance based awareness, exceptional risk detection, reporting and response, and performance
monitoring
• Disaster and emergency preparedness including crisis response, communications, evacuation, shelter-in-place,
and recovery capabilities
• Compliance risk awareness , asset protection, fraud & exception-based detection, reporting , and response
• Protection in-depth resources for secure data collection, storage & transmission; as well as exception risk
detection, reporting and response solutions.• Layered access control, barriers, detection of risk, event
authentication, reporting and response, design and engineering
• Compliance based protection, risk awareness, exception reporting, event authentication, and response capability
• Hire and assignment risk mitigation including identity authentication; environmental, health and life-safety risk awareness, exception detection, all-channel reporting and
mitigation resources for workplace and travel.
Board-Level Risk™ Considerations
©2010 Security Executive Council www.securityexecutivecouncil.com Content cannot be copied, distributed, or republished without written permission.
Worst Case Scenario, Mass Casualty Events
© Drs. Knight and Pretty, Oxford Metrica – All rights reserved. Used with permission
SEC Research Preview: OPaL™
The goal is to utilize SEC research to more effectively provide mitigation strategies that meet business needs and in turn allow Solution Innovation partners to more
effectively provide solutions that add value to business.©2010 Security Executive Council www.securityexecutivecouncil.com Content cannot be copied, distributed, or republished without written permission.
Security 2020™ & Solution Innovation Partnerships:
10. Risk AVT exception monitoring & operational quality assurance
2. Environmental design
3. Trusted agent authentication
5. Smart-safe virtual bank credit6. Inventory – supply chain7. Point of Sale (POS)
8. Interoperable controls
9. Inter-sector response
4. Entertainment, messaging
1. All-hazard, manmade and natural , risk assessment
©2010 Security Executive Council www.securityexecutivecouncil.com Content cannot be copied, distributed, or republished without written permission.
Optimizing Plan with Return on Investment Risk Events per 1000 Units
Asset Loss as a % of Sales
Net Revenue Growth 2002-07
Test and Control Units
2000-2007©2010 Security Executive Council www.securityexecutivecouncil.com Content cannot be copied, distributed, or republished without written permission.
Next Generation Leadership
©2010 Security Executive Council www.securityexecutivecouncil.com Content cannot be copied, distributed, or republished without written permission.
Questions and AnswersResources:
Francis D’Addario: Not a Moment To Lose… Influencing Global Security One Community at a Time https://www.securityexecutivecouncil.com/secstore/index.php?main_page=product_info&products_id=357
Moises Naim Illicit How Smugglers, Drug Traffickers and Counterfeiters are Hijacking the Global Economy
Taiichi Ohno: Toyota Production System http://www.amazon.com/Toyota-Production-System-Beyond-Large-Scale/dp/0915299143
http://www.amazon.com/Illicit-Smugglers-Traffickers-Copycats-Hijacking/dp/0385513925
