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How Corporate Security Changed After 9/11. John M. McCarthy Managing Partner Business Security Advisory Group The Business Security Advisory Group (BSAG) specializes in a broad range of corporate security consulting services including : Business continuity,

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How Corporate Security Changed After 9/11

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How Corporate Security Changed After 9/11

John M. McCarthy

Managing Partner

Business Security Advisory Group

The Business Security Advisory Group (BSAG) specializes in a broad range of corporate security consulting services including :

  • Business continuity,

  • Risk assessment and management,

  • Regulatory compliance,

  • Strategic security planning and policy development.

    Getting Ahead of the Problems

  • Corporate Security’s responsibilities prior to 9/11

  • Corporate Security’s responsibilities post 9-11

  • Laws and regulations regulating the security industry post 9/11

  • Corporate Security in the 21st Century

  • Investigations – violation of corporate policy and other corporate crimes

  • Physical security – gates, guards, guns

  • Executive protection – ensuring top executives and families were secure

  • Corporate Security generally a middle management responsibility

  • Corporate Security generally thought of as the “Corporate Cop”

  • Corporate Security plans and programs generally responsive or reactive to immediate incidents – no long term planning

  • Mostly reactive-incident happens, security responds – fire house mentality

  • Stove Pipe thinking – Security programs sometimes contrary to Business Unit’s business plans and goals

  • Law Enforcement Driven – security goal must be attained at all costs – no priorities

September 11, 2001

September 10, 2001

  • Three thousand civilians murdered

  • $80 Billion dollars in losses

  • 11 Million people in developing countries pushed into poverty.

  • Financial markets closed

  • Air transportation system grounded

  • Mail Processing – 86%

  • Travel – 85%

  • Protection of Employees – 79%

  • Protection of Infrastructure – 75%

  • Risk Assessment – 71%

    *3 Booz, Allen, Hamilton Survey – 11/01

  • Protection of Offices and Physical Plants – 69%

  • Employee Morale – 69%

  • Supply Chain Distribution – 51%

  • Customer Security – 50%

  • Productivity – 47%

  • Corporate Security gets the attention of Executive Management

  • Corporate Security seen as a resource to the company not as a necessary evil

  • Corporate Security an advisor to Executive Management and Business Units concerning comprehensive security programs for personnel and corporate asset protection

  • Corporate Security reports to the “C” suite in many companies and is no longer a mid-level executive responsibility

  • Corporate security executives become more business oriented in management style and program content

  • Corporate Security becomes an enterprise function of the company

  • Emergency plans include crisis management, disaster recovery and business continuity developed in a proactive environment

  • Corporate Security executives now craft strategic and tactical security plans for business units.

  • Plans and programs consider business goals and budgets

  • All corporate security plans and programs are more proactive and include prevention of terrorist attack

  • The Public Sector recognizes its greater responsibility to protect its citizens and assets

  • Corporate Security deals more with federal, state and local officials as security regulations exponentially increase

  • Public and private partnerships flourish as both attempt to craft meaningful emergency proactive plans, protective processes, security laws and regulations

  • Corporate security plans and programs develop a legal compliance component as corporations comply with the new mandated legislation

  • Corporate Security’s programs are more restrictive and costly as both terrorism and legislative compliance are emphasized


Access to Information Act

Arming Pilots Against Terrorism Act

Aviation and Transportation Security Act

Bank Protection Act of 1968

Canadas Bill C-6

Childrens Online Privacy Protection Act (COPPA)

Corporate Manslaughter and Corporate Homicide Act 2007(UK)

Customs Modernization Act

Cyber Security Enhancement Act of 2002

CyberCrime TreatyE-Signature Act

European Union Data Protection Directive

Executive Order 12958 –

Information SharingExecutive Order 13224 –

Doing Business w/ Terrorists

Executive Order 13231 –

Infrastructure Protection

Executive Order 13234 –

Legislation (Continued)

Citizen Preparedness

Family Educational Rights and Privacy Act

Federal Anti-Tampering Act

Federal Computer Security Bill –

H.R. 1259Federal Hazardous Materials Law

Foreign Corrupt Practices Act

Homeland Security Act

International Emergency Economic Powers Act

Maritime Transportation Security Act of 2002

National Information Infrastructure Protection Act

Notification and Federal Employee Anti-Discrimination and Retaliation Act

Patriots Act

Personal Information Protection and Electronic Documents Act

Legislation (Continued)

Presidential Directive 2

Presidential Directive 3

Presidential Directive 7

Presidential Directive 8

Public Health Security and Bioterrorism Preparedness & Response Act

Robinson-Patman Anti-Trust Act

Safe Explosives Act

Safe Harbor Act

The Occupational Safety and Health Act

The Currency and Foreign Transactions Reporting Act

Title 18 - Federal Sentencing Guidelines

Trade Act of 2002

US Global Anti-Corruption Policy

US The Currency and Foreign Transactions Reporting Act


Voluntary Private Sector Preparedness Accreditation and Certification Program

*Above information furnished by Security Executive Council

  • Vicarious corporate executive liability for violation of some of the criminal and environmental laws

  • Civil liability in money damages for tort law violations

  • Criminal liability for companies and employees in foreign venues for violations of international laws and regulations

  • Overarching federal statutes either mandate or furnish guidelines for fines and/or punishment for violation of statutes and regulations


  • Corporate Security executives will be law enforcement and business qualified and also possess some technical security and management ability

  • Chief Security Officer will report to Executive Management and have complete unfettered access to the “C” suite

  • Corporate Security will have an enterprise component and deal with security matters in a manner business executives will understand


  • Corporate Security plans and programs will be mostly pro-active and preventative anticipating security challenges and emergencies before they occur

  • Corporate Security will use the team concept and interact with all the business units and service departments to ensure cost effective corporate security policy is practically implemented company wide.


  • Corporate Security plans and programs will have to deal with the reality of government regulation and develop innovative methods to keep current with the laws and effect compliance

  • Develop innovative methods to ensure security solutions are as multi-faceted as possible so that the cost and compliance components can be spread among other business units


Corporate Security will re-orient its goals from strictly law enforcement objectives to ones that includes a business component e.g. provide metrics for security services that:

  • Increase profitability

  • Reduce costs

  • Enhance the brand

  • Improve customer relationships

  • Reduce employee attrition

  • Drug Testing Programs

  • Employee Reduction Programs

  • Investigative and Interview Training

  • Background Inquiries

  • Expatriate Mobilization Programs

  • Workplace Violence Programs

  • Crisis Management Programs

  • Security Awareness Programs

  • Domestic and Global Evacuation Programs


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