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How We've Changed - Corporate security
By Andrew Haeg
Minnesota Public Radio
January, 2002
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Shortly after Sept. 11, there was widespread speculation of what form the next attack would take. Some thought it likely that terrorists would go after the heart of capitalism - corporations. That speculation, coupled with new and evolving terrorist threats, spurred companies around the state to reassess and strengthen their security procedures.

"Even though we might feel a little insulated here in Eden Prairie, we are a global company. Any event that would impact another area certainly would have an impact on our bottom line. And that's something we have to be prepared for that," says Nancy Riley, corporate security officer at Ontrack, which has offices in London, Paris, Tokyo and Stuttgart.
(MPR Photo/Andrew Haeg)
 

When terrorists go looking for targets, Eden Prairie won't likely be their first destination. Yet, Ontrack International, based in that Twin Cities suburb, has spent the last four months training its 400 employees for that possibility.

It's teaching them to deal with suspect mail and to be more aware of all kinds of threats. The software development company has also created a critical response team to deal with any future crises.

"Even though we might feel a little insulated here in Eden Prairie, we are a global company. Any event that would impact another area certainly would have an impact on our bottom line. And that's something we have to be prepared for that," says Nancy Riley, corporate security officer at Ontrack, which has offices in London, Paris, Tokyo and Stuttgart.

The problem is, a dollar spent on security is a dollar subtracted from the bottom line.

Riley and others agree that prior to Sept. 11, corporations were reluctant to spend that money. Now, she says, executives see security spending as essential.

"There certainly seems to be a lot better reception, corporate-wide, to the security message that we didn't have before. People are generally much more aware of the benefit that security brings to them, that it's not just a hassle," she says.

Riley says one benefit of security spending is the impact it can have on employees. When people see that the company is treating them and their work as assets to be protected, they'll feel more valued.

"If people don't feel a sense of security, they're going to be less likely to produce at the levels that are necessary," says Alfred Marcus, a professor of strategic management at the University of Minnesota's Carlson School of Management. "There's a human component to this as well. It's not just a mere economic calculation. It's that good organizations only work if people show care, concern about the other people, that every part of their well being is important, including their physical security."

But the Carlson School's Alfred Marcus says security spending will be a boon to some businesses. "There are going to be some costs which are not going to provide economic value, but some new demands that have to be met which will provide economic value not only to the individuals who will consume those products, but also to the corporations that will be able to meet those needs," he says.
(MPR Photo/Andrew Haeg)
 

Wells Fargo is another company that's increased paying more attention to security issues. John Shriner, Wells Fargo's director of corporate security. declined to discuss the specifics of the company's plans, but he says, without a doubt, security spending is up.

"Have we overturned the apple cart and doubled our budget? No. But there have been additional expenditures as we see prudent and based on risk," he says.

For Wells Fargo and other companies, security is a necessary burden to the balance sheet.

But the Carlson School's Alfred Marcus says security spending will be a boon to some businesses. "There are going to be some costs which are not going to provide economic value, but some new demands that have to be met which will provide economic value not only to the individuals who will consume those products, but also to the corporations that will be able to meet those needs," he says.

For some companies, then, the new emphasis on security means rising demand for their products.

Jim Andrews is CEO of Securicor, a security consulting firm. Securicor helps companies plan and budget for new security systems. The company does an inventory of a firm's risks and vulnerabilities.

Andrews then suggests ways to protect a company against threats. Since Sept. 11, Securicor has seen a 20 to 30 percent increase in business. The company has hired additional staff, and acquired a firm with experience in handling bomb threats.

"Before (Sept. 11) and after, a lot of corporations that we deal with did have a plan in place to react, and they reacted very well. I think what we're seeing is more of a restructuring and formulating much more consistent and much more efficient plan of how to react to those types of scenarios is what we've seen a big increase in," according to Andrews.

Another local company profiting from an increased interest in security is 3M. The company recently created a new division that brings together all of the 3M products that could make a business more secure. When the terrorists attacked, they chose a symbol of America's corporate dominance.

If that logic persists, then businesses are wise to prepare themselves in advance.

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