Every organisation has been affected in some way by the global COVID-19 pandemic. The worldwide economic downturn has many organisations scrambling to cut costs to survive. For some organisations, expenditures that do not directly generate revenue are often the first to get axed. Since security and risk management programmes typically are not revenue generators, some organisations may be tempted to cut spending in those areas. Simply put, this could be a costly mistake.
Because of the global economic downturn, criminal organisations are looking for new ways to “earn” money. Factors such as high unemployment also contribute to the increased pool of potential threat actors looking to replace income lost through job loss. Global unrest caused by lockdowns and the downturn in the economy makes this time particularly
dangerous from a security standpoint. Cybercriminals have also increased their activities with a larger, more vulnerable population working remotely during the pandemic. The FBI claims cybercrime reports have increased four-fold during the pandemic (Aspen Institute April 16, 2020).
Alex Tadmoury, Senior Vice President of FM Global, echos this warning to the insurance industry (https://www.insurancenews.com.au/analysis/risk-management-is-no-place-to-cut-corners-during-a-pandemic). Cutting costs on critical risk management or security programmes at this time will expose an organisation to risks that could be far more costly in the long term. As the article says, ‘Risk management may come at a cost, but the unmanaged risk is far costlier.’ An unexpected loss due to reduction, a lapse of security or a reliable risk management programme at a time when many businesses are already struggling, could be devastating and mean the difference between survival and going bust.
So how does an organisation continue to ensure they are protected while still considering cost-saving measures in this economic downturn? I believe the reliance on evidence-based solutions that are data-driven increase the effectiveness and eliminate inefficiencies of more traditional security measures. My firm specialises in delivering these more cost-effective, evidence-based risk management and security programmes that can protect an organisation during this trying time.
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