Balancing Act: Between security risk and impact
by Graeme Mickelberg
The past ten years have seen an increased emphasis on security from governments and businesses. Graeme Mickelberg looks at some of the key issues faced by the security industry.
The justification for expenses incurred in combating security-related threats has been the risks arising from the threat of terrorism. Although there have been no terrorist attacks on Australian soil, Australians have been killed and injured in attacks in other countries.
As a consequence the risks arising are viewed by many people as real and the measures to protect security wholly justified. However, the costs of assuring the security of the community have been considerable and these costs extend beyond financial impact alone, resulting in significant challenges for government and business.
Combating the global threat of terrorism has resulted in many countries introducing legislation that has imposed mandatory controls and reporting requirements on almost all industry sectors. The implications of this extend well beyond national boundaries, involving other governments and businesses, including the Australian Government and Australian businesses.
Examples include the regulatory framework introduced by the International Maritime Organisation and a supply chain security standard introduced by the International Standards Organisation which has imposed additional controls on international trade with consequent flow-on effects to Australian businesses involved in import and export trade.
In addition to international regulation and standards for security, Australian governments at Federal and state levels have also enacted legislation that has mandated security requirements for businesses, resulting in additional costs and other implications, including reporting and auditing.
The age of information
Uncertainties arising from the threat of terrorism have become more apparent, particularly given the capacity of media sources to quickly respond to incidents and to anticipate potential threats. Similarly, the domestic media has the ability to connect in real time with international media and report incidents and emerging trends from around the world.
Compounding the impacts of media reporting is the ability of individuals to harness social networking tools to communicate their messages around the world in very short timeframes. This has contributed to a climate of uncertainty which has had a direct impact on a range of industry sectors, particularly tourism.
The exponential increase in the volume of information available coupled with the capacity for organisations and individuals to access that information, including that contained in protected databases, has resulted in information becoming an invaluable source of intelligence not only to government intelligence agencies but also to organised criminals, terrorists, issues-motivated groups and individuals adept at finding critical information stored by governments and businesses.
The impacts associated with the unauthorised and/or illegal use of information are the source of daily media reports, documenting the approach taken by criminals who commit fraud that extends beyond national boundaries.
Further, the capacity of individuals to access sensitive information and distribute it to people around the world is ever present.
The current situation involving WikiLeaks reflects the fragility of security measures designed to protect information from unauthorised access and the international and national impacts of breaches of information security.
Securing the supply chain
The dependence by Australian governments and businesses on contractors to assist them in the delivery of services and the provision of key inputs has required the implementation of security controls that require contractors to comply with those controls. Inevitably such compliance comes at a financial cost which just as inevitably is passed on to others, including Australian consumers.
Similarly, the recognition that businesses which operate in a supply chain with other businesses may be directly or indirectly exposed to security risks has resulted in controls to guarantee key inputs such as raw materials necessary to sustain the operations and productivity of other supply chain businesses. Implementing such controls has necessarily required greater integration in the way in which security is implemented.
A key aspect of the arguments against increased security is the adverse impact on civil liberties. Underpinning this dimension is the intrusiveness of security-related technologies such as CCTV coupled with the need for governments to ensure the integrity of their security by insisting on designated persons being security cleared or employers who insist on employees being subjected to criminal records checks. Civil libertarians argue that police and government security agencies do not need these and other increased powers, including additional powers of surveillance, arrest and detention, and that by granting these powers the civil liberties of Australians are being put at risk.