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Corporate Security Programs Not Integrated with Enterprise Risk Management

Most companies fall short on one or more of five key areas

The Conference Board
Mon, 12/19/2011 - 17:01
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(The Conference Board: New York) -- Despite the potentially crippling impact of security events on corporate performance, many executives report that their security function is not well coordinated with enterprise risk management (ERM) or a similar risk function, The Conference Board reports.

The October 2011 report, “Preparedness in the Private Sector—2011,” by Daniel Sandy Bayer is based on a survey of 263 executives from companies of different sizes and industries on how they approach resilience and security. The report examined security planning and programs in five key areas: physical security, IT security, business continuity, crisis management, and pandemic planning.

Only about half of surveyed executives said IT security, business continuity, and crisis management at their company were “completely” or “very coordinated” with ERM/risk management, while only 43 percent said the same about physical security. “Companies need to reconsider the scope and operating procedures of their ERM program to ensure it is integrated with the company’s efforts to manage potentially catastrophic security risks,” the report notes.

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