Chapter 2 The Business, Careers, and Challenges of Security and Loss Prevention

Chapter 2 The Business, Careers, and Challenges of Security and Loss Prevention Security & Loss Prevention- Chapter 2

Objectives • After study this chapter, the reader will be able to: • Explain the risks and losses facing our society. • Define and illustrate metrics and explain why it is important • Describe the security industry. • Define and explain privatization. • Describe the types of employment available in the security and loss prevention vocation. • Explain the limitations of the criminal justice system. • List and discuss the challenges of the security industry. Security & Loss Prevention- Chapter 2

Introduction • If You Want Peace, Prepare for War. • The original Latin of the expression "if you want peace, prepare for war" comes from "EpitomaReiMilitaris," by Vegetius (Publius Flavius VegetiusRenatus). The Latin is: "Igitur qui desideratpacem, praeparet bellum." • If you want to protect yourself and others against physical danger and loss of assets,prepare for the worst and hope for the best. • Motivation + Ability + Opportunity = Crime Security & Loss Prevention- Chapter 2

Introduction • Security is “big business” globally • Terminology: • Private sector security exist to generate a profit. • Public sector security serves the general public and is supported by tax dollars. • Both the private sector and the public sector strive to protect: • People, assets, threats and hazards that can result in harm and losses. Security & Loss Prevention- Chapter 2

p. 23 Introduction • Asset: Anything tangible or intangible that is capable of being owned or controlled to produce value and that is held to have positive economic value is considered an asset. • The operations of enterprises refer to the utilization of human resources and assets to pursue organization objectives. • Risk is defined as the measurement of the frequency, probability, and severity of losses form exposure to threats or hazards. • A threat is a serious, impending, or recurring event that can result in loss, and must be dealt with immediately. • A hazard is defined as a source of danger that has the potential to cause unwanted outcomes such as injury, death, property damage, economic loss, and environmental damage that adversely impact our society. Security & Loss Prevention- Chapter 2

p. 23 Threats/Hazards Criminal ActsNatural Disasters Miscellaneous Arson Assault Burglary Computer Crime Counterfeiting Embezzlement Espionage Extortion Fraud Identity Theft Kidnapping Larceny/Theft Murder Product Tampering Riot Robbery Sabotage Sexual Assault Shoplifting Substance Abuse Terrorism Vandalism Accident Bad Investment Business Interruption Equipment Failure Error Explosion Fire Litigation Mine Disaster Nuclear Accident Oil Spill Pollution Poor Safety Poor Supervision Power Outage Sexual Harassment Sonic Boom Strike Unethical Conduct War Wast Earthquake Excessive Snow/Ice Floods/Excessive Rain Hurricane Landslide Lightning Pandemic Pestilence Tidal Wave Tornado Tsunami Volcanic Eruption Security & Loss Prevention- Chapter 2

Introduction • All-hazards refers to multiple types of hazards, including natural disasters (e.g., hurricane) and human-made events (e.g., inadvertent accidents, such as an aircraft crash, and deliberate events, such as the terrorist bombing of an aircraft). • The term all-hazards is important because it relates to the all-hazards preparedness concept. Security & Loss Prevention- Chapter 2

Metrics • It is imperative that management develop methods to measure security and loss prevention, loss events, and the cost of losses. • Why? Because you will have to report to upper management, shareholders and the like. • Methods of measurement are referred to as metrics. • These measurements show the value and performance that security and loss prevention brings to the business enterprise. Security & Loss Prevention- Chapter 2

p. 24 Types of Metrics • Internal metrics focus on measurements within an organization. These include: • annual theft reports • monetary value of recovered assets • percentage of employees hired, and released because of falsified backgrounds • the number of malfunctions of an access control point Security & Loss Prevention- Chapter 2

p. 24 Types of Metrics • KovacichandHalibozek (2006) define a security metric as “the application of quantitative, statistical, and/or mathematical analyses to measuring security functional costs, benefits, successes, failures, trends and workload--in other words, tracking the status of each security function in those terms.” Security & Loss Prevention- Chapter 2

Types of Metrics • Two basic methods of tracking costs and benefits. • Recurring costs: from day-to-day- operations, such as security officer duties and investigations of loss of assets. • Formal project plans: that set a schedule of beginning and ending dates, with specific objectives and costs that serve to track (i.e.,) time, expenses, and accomplishments. Security & Loss Prevention- Chapter 2

p. 25 Types of Metrics • The type of metric used depends on what the security executive, organization or industry wishes to prove. • Metrics are subject to methodological problems: • measurements are not perfect and subject to a host of factors that may result in inaccuracies. • metrics may produce more evidence about the way in which the enterprise is managed than about actual events and losses. Security & Loss Prevention- Chapter 2

Direct and Indirect Losses • Direct Losses: are immediate, and obvious losses • Indirect Losses: are prolonged and often hidden. • Example: • Burglary (direct) • Hidden losses may include: • damage to the door or window • replacement of the destroyed safe • insurance policy deductible • increase in insurance premium • loss of sales from a delay in opening of the business • customer dissatisfaction • employee time required to speak with police • insurance representatives • repair people Security & Loss Prevention- Chapter 2

p. 25 Types of Metrics • External Metrics focus on society-wide measurements. Examples include the risk of crimes or natural disaster in a geographic area. • External metrics help enterprises make business decisions, such as geographic location for business investment and the types of insurance to purchase. • Helpful in planning and budgeting for strategies to prevent crimes, fires, and accidents. Security & Loss Prevention- Chapter 2

p. 26 Measurement of Crime • Uniform Crime Report (UCR) • Self-reported • The National Crime Victimization Survey (NCVS) • Crime data outside the U.S. is very unreliable • International Criminal Police Organization (INTERPOL) • the World Health Organization • the United Nations Security & Loss Prevention- Chapter 2

p. 26 Fires • Two major sources that measure the fire problem in the U.S. • the National Fire Protection Association (NFPA) • the U.S. Fire Administration (USFA) • The National Fire Data Center (NFDC) of the USFA periodically publishes Fire in the United States, a 10-year overview of fires in the U.S. Security & Loss Prevention- Chapter 2

p. 26 Accidents • The Occupational Safety & Health Administration (OSHA) reports accidents, injuries and illnesses among private sector firms. • The National Center for Injury Preventions and Control also reports on injuries and deaths each year. (NCIPC) part of the Center for Disease Control (CDC) Security & Loss Prevention- Chapter 2

p. 27 The Security Industry • The American Society for Industrial Security known as ASIS International (ASIS) is a major organization of security professionals who are at the forefront of improving the security industry through education and training, certifications, research, security guidelines, and global collaborative initiatives. • Founded in 1955, ASIS is dedicated to increasing the effectiveness and productivity of security professionals by developing educational programs and materials that address broad security interests, such as the ASIS Annual Seminar and Exhibits, as well as specific security topics. Security & Loss Prevention- Chapter 2

p. 28 Contract versus Proprietary Security • Proprietary security and contract security companies are responsible for protecting companies and businesses and ensuring the safety of employees and consumers. • A proprietary security company is controlled entirely by a particular company and is responsible for the hiring, firing and management of personnel. • A contract security company is operated by a professional security company and contracts its services to different companies. Security & Loss Prevention- Chapter 2

p. 28 Contract Security PROs CONs unqualified security officers rapid turnover no loyalty to the company being served “moonlighting” and subject to fatigue liability factors may be hazy • generally less expensive • handles: • recruitment • selection • training • supervision • medical insurance paid by contract company • no manpower shortage Security & Loss Prevention- Chapter 2

p. 28 Proprietary Security PROs CONs salaries & benefits medical insurance cost of training liability equipment upkeep illness vacation time • greater control over personnel including: • selection • training • supervision • personnel are much more familiar with the needs of the company • loyalty is greater Security & Loss Prevention- Chapter 2

p. 29 Privatization • Privatization is the contracting out of government programs, either wholly or in part, to for-profit and not-for-profit organizations. • Many services are provided to government agencies by the private sector today. • military facilities and support • private military and security companies (Blackwater) • airports • courts • prisons Security & Loss Prevention- Chapter 2

Privatization • Various governments -- from small towns all the way up to federal agencies -- have been sending public services to the private sector since the 1980s. • The trend stems from the common belief that private companies can help governments save or make money by doing jobs faster and cheaper, or managing a public asset more efficiently. • From: The Pros and Cons of Privatizing Government Functions by : RussellNichols Security & Loss Prevention- Chapter 2

Privatization Pros • Philadelphia, Pennsylvania Gov. Ed Rendell saved $275 million by privatizing 49 city services. • Chicago has privatized more than 40 city services. • Since 2005, it has generated more than $3 billion in upfront payments from private-sector leases of city assets. • In 2005, West Virginia Gov. Joe Manchin worked to transform the state’s Workers’ Compensation Commission into a private insurance carrier, saving more than $150 million in annual employer savings. • From: The Pros and Cons of Privatizing Government Functions by : RussellNichols Security & Loss Prevention- Chapter 2

Privatization • New Jersey Privatization Task Force reported. “Over the last several decades, in governments at all levels throughout the world, the public sector’s role has increasingly evolved from direct service provider to that of an indirect provider or broker of services; governments are relying far more on networks of public, private and nonprofit organizations to deliver services.” • From: The Pros and Cons of Privatizing Government Functions by : RussellNichols Security & Loss Prevention- Chapter 2

Privatization • The New Jersey report took careful note of another key factor: • The states most successful in privatization created a permanent, centralized entity to manage and oversee the operation, from project analysis and vendor selection to contracting and procurement. For governments that forgo due diligence, choose ill-equipped contractors and fail to monitor progress, however, outsourcing deals can turn into costly disasters. • From: The Pros and Cons of Privatizing Government Functions by : RussellNichols Security & Loss Prevention- Chapter 2

Privatization Gone Bad • Texas cut short its seven-year contract with IBM, an $863 million deal when an audit criticized the state’s Department of Information Resources for lax oversight, inadequate staffing and sloppy service. • In Virginia, the state’s 10-year, $2.3 billion IT contract with Northrop Grumman to run the state’s computers, servers, e-mail systems and help desk services also has been plagued by inadequate planning, cost overruns and poor service. • From: The Pros and Cons of Privatizing Government Functions by : RussellNichols Security & Loss Prevention- Chapter 2

Privatization • “Before governments hire outside contractors, it’s important to examine the cost-effectiveness,” says Nicole Hanks, deputy press secretary of the state (New York) comptroller’s office. “More times than not, it’s less expensive to use state workers instead of outside contractors.” • Bottom Line: A good outsourcing deal starts with a thorough cost-benefit analysis to see if a third party can effectively deliver services better and more cheaply than public employees. The Pros and Cons of Privatizing Government Functions Outsourcing may seem like a perfect solution for deficit-plagued governments, but the morning after can bring some unpleasant surprises. BY: RUSSELL NICHOLS | DECEMBER 2010 Security & Loss Prevention- Chapter 2

p. 35 Challenges of the Security Industry • The Rand Report (U.S. Department of Justice, 1972) focused national attention on the problems and needs of the private security industry. • “the typical private guard is an aging white male, poorly educated, usually untrained, and very poorly paid.” • The Report of the Task Force on Private Security (1976). This report of the National Advisory Committee on Criminal Justice Standards and Goals was the first national effort to set realistic and viable stands and goals for private security to emumlate. Security & Loss Prevention- Chapter 2

p. 35 Challenges of the Security Industry • The Report of the Task Force on Private Security (1976) was an attempt to reduce ineptitude and industry abuses, while striving toward professionalism. • Unfortunately many of the problems are still with us. • Private Security and Police in America: The Hallcrest Report (1985) was another major study of the security industry by the U.S. Department of Justice. Security & Loss Prevention- Chapter 2

p. 35 Challenges of the Security Industry • Private Security and Police in America: The Hallcrest Report (1985) focused on: • the contributions of both public police and private security to crime control • the interaction of these two forces and their level of cooperation • the characteristics of the private security industry Security & Loss Prevention- Chapter 2

p. 35 Challenges of the Security Industry • A second Hallcrest Report titled Private Security Trends: 1970-2000, The Hallcrest Report II provided a study of security trends to the 21st century. • Companies are less inclined to hire security managers with police or military backgrounds. They are more inclined to hire those with business backgrounds. • The negative stereotype security personnel are being replaced with younger, better-educated officers with greater number of women and minorities. • Quality, training and compensation still remain a problem. Security & Loss Prevention- Chapter 2

Cooperation between Public Police and Private Security (I get no respect) • There has always been a chasm between the public police and private security. • lack of respect between public police and private security • lack of communication • lack of trust • training differentials • lack of information sharing • role conflict on private property • Bottom Line: An improved partnership between both groups can be beneficial to our nation by improving planning and emergency response and by sharing information, expertise, and training. Security & Loss Prevention- Chapter 2

p. 37 Challenges of the Security Industry • Initiatives by the U.S. government to facilitate communications: • Information Sharing and Analysis Centers (ISACs) are generally private sector networks of organizations that the federal government has helped to create to share information on threats to critical industries and coordinate efforts to identify and reduce vulnerabilities. • Homeland Security Information Network-Critical Infrastructure (HSIN-CI) enables key executives in the public and private sectors to receive alerts and notifications from DHS via phone, wireless, e-mail, fax or pager. Security & Loss Prevention- Chapter 2

THE POLICE CODE OF ETHICS • There are few professions that demand so much moral fiber as policing. Police stand in "harm's way" not so much against enemies with bullets but against enemies skilled in every form of trickery, deceit, feigned ignorance, and deception. That's why the Law Enforcement Code of Ethics published by the International Association of Chiefs of Police, stands as a spirited reminder to the higher order of this calling: Security & Loss Prevention- Chapter 2

* As a Law Enforcement Officer my fundamental duty is to serve mankind; to safeguard lives and property; to protect the innocent against deception, the weak against oppression or intimidation, and the peaceful against violence or disorder; and to respect the Constitutional rights of all men to liberty, equality and justice. * I will keep my private life unsullied as an example to all; maintain courageous calm in the face of danger, scorn, or ridicule; develop self-restraint; and be constantly mindful of the welfare or others. Honest in thought and deed in both my personal and official life, I will be exemplary in obeying the laws of the land and the regulations of my department. * Whatever I see or hear of a confidential nature or that is confided to me in my official capacity will be kept ever secret unless revelation is necessary in the performance of my duty. * I will never act officiously or permit personal feelings, prejudices, animosities or friendships to influence my decisions. With no compromise for crime and with relentless prosecution of criminals, I will enforce the law courteously and appropriately without fear or favor, malice or ill will, never employing unnecessary force or violence and never accepting gratuities. * I recognize the badge of my office as a symbol of public faith and I accept it as a public trust to be held so long as I am true to the ethics of the police service. I will constantly strive to achieve these objectives and ideals, dedicating myself before God to my chosen profession...law enforcement. Security & Loss Prevention- Chapter 2

Private Security Code • A private security code of ethics was created by the Task Force on Private Security and was sponsored by the National Advisory Committee on Criminal Justice and Standards and Goals, 1976. This code serves as an industry accepted benchmark for quality of service. The code of ethics provides guidance to Integral Officers in dealing with situations not specifically covered in written instructions. Security & Loss Prevention- Chapter 2

Assignment • For next Monday, I want you to find the code of ethics for Private Security as noted by the Task Force on Private Security and compare and contrast it to the Police Officers Code of Ethics as outlined by the International Association of Chiefs of Police. Security & Loss Prevention- Chapter 2

Web Sites • ASIS International: www.asisonline.org • International Foundation for Protection Officers (IFPO): www.ifpo.org • Bureau of Justice Statistics: www.aacsb.edu/resource_centers/EthicsEdu/default.asp • Federal Bureau of Investigation: www.fbi.gov/ucr/ucr.htm • International Association of Chiefs of Police: www.theiacp.org • International Association of Security and Investigative Regulators: www.iasir.org • Markkula Center for Applied Ethics: www.scu.edu/ethics • National Association of Security Companies: www.nasco.org Security & Loss Prevention- Chapter 2

p. 41 ASIS International: www.asisonline.org International Foundation for Protection Officers (IFPO): www.ifpo.org Bureau of Justice Statistics: www.aacsb.edu/resource_centers/EthicsEdu/default.asp Federal Bureau of Investigation: www.fbi.gov/ucr/ucr.htm International Association of Chiefs of Police: www.theiacp.org International Association of Security and Investigative Regulators: www.iasir.org Markkula Center for Applied Ethics: www.scu.edu/ethics National Association of Security Companies: www.nasco.org National Fire Protection Association: www.nfpa.org/ Security Industry Association: www.siaonline.org/ U.S. Department of Homeland Security: www.dhs.gov/dhspublic/ Security & Loss Prevention- Chapter 2

The End Security & Loss Prevention- Chapter 2

Chapter 2 The Business, Careers, and Challenges of Security and Loss Prevention