THE FUTURE OF PRIVATE SECURITY COMPANIES Lt Col Tim Spicer OBE Chief Executive Officer 31 October 2006

1. THE FUTURE OF PRIVATE SECURITY COMPANIES Lt Col Tim Spicer OBE Chief Executive Officer 31 October 2006

2. The Future of Private Security Companies “The 2006 Quadrennial Defence Review for the first time outlines a vision of the National Security Battle Space with significant private sector involvement” NDU Report 2006

3. The Future of Private Security Companies • Current and future operational environment • Key factors • Commercial • Government • Humanitarian • Assessment

4. The Future of Private Security Companies • THE LANDSCAPE • The Unstable World • Protracted Asymmetrical Warfare • Terrorism • Organised Crime • Deep rooted problems • Threat of traditional warfare between states • Natural disaster, famine, drought, tsunami, earthquake and associated complications • Wide spectrum of actors • Continuing inability of UN to act quickly, decisively and effectively • Media

5. The Future of Private Security Companies • CURRENT MARKET DRIVERS • IRAQ • AFGHANISTAN • GOVERNMENT Vs COMMERCIAL • NATIONALISATION • COMPETITIVE TENDERING / MARKET FORCES

6. The Future of Private Security Companies • SIZE OF INDUSTRY • 20,000 in Iraq alone • 2nd largest Coalition Partner • Revenues in excess of $100 billion by 2010 ???????? • In US Service contracts including security 40% of DOD contract

7. The Future of Private Security Companies CRITICAL FACTORS REGULATION IMAGE CAPABILITY

8. The Future of Private Security Companies IMAGE

9. The Future of Private Security Companies • REGULATION • National • International • Aggressive Self-regulation • Quality Standards • Insurance Liability • Contractual compliance

10. The Future of Private Security Companies • CAPABILITY • Management & leadership • Professional Standards • Effective Delivery • Engage carefully • Innovate to survive • Mutual Support

11. The Future of Private Security Companies • COMMERCIAL WORLD • Can’t escape the threat • Greater awareness for need of security • Duty of Care • Sarbanes – Oxley Act 2002 • Insurance

12. The Future of Private Security Companies • GOVERNMENT • US • UK: FCO, MOD • Home Defence (Homeland Security) • Peacekeeping/Peace enforcement • Security Sector Reform

13. The Future of Private Security Companies • HUMANITARIAN • UN ? • Natural Disasters • NGOs • ‘The Humanitarian Space’ • Post conflict reconstruction

14. The Future of Private Security Companies THE FUTURE

15. The Future of Private Security Companies • ASSUMPTIONS • Threat will continue • No abrogation of sovereignty • No abrogation of responsibility for National Defence at home/overseas • Conflict Resolution by established Armies • UN & unilateral government action will lead in Peacekeeping/enforcement • Quest for regulation will continue • Media

16. The Future of Private Security Companies • ROLES • COMMERCIAL • Business Intelligence • Physical Security • Duty of Care

17. The Future of Private Security Companies • GOVERNMENT • UK/US outsourcing • Protective Security • - Static • - Mobile • Military Support • - Force Protection • - Lines of communication • - KP • - Training • - Air & Aviation • Specialist EOD/Medical • SSR / DDR

18. The Future of Private Security Companies • HUMANITARIAN • Protective Security • C3I • ‘Hearts & Minds’

19. The Future of Private Security Companies • INDUSTRY FUTURE TRENDS • Continue to strive for legitimacy • Engagement • Consolidation • Diversification • Internationalisation

20. The Future of Private Security Companies • SUMMARY • Healthy but at a critical milestone • Solid sector in UK and US • UK could be “quality” market leaders • Work together

21. QUESTIONS