The Importance of Safety and Security in Private Business - Research Paper Example

?Topic of the The private business frontier is constantly facing variant risks. Although government authorities professed that the national economy is regaining balance but business security is sustainably confronted with threats on terrorism, ecological imbalance, criminalities, trading relations, fluctuation of prices, instability of forex, and labour or political unrest. This paper will discuss about the necessity for corporate contingency security management plan to ascertain that the company can withstand the variant pressures, both internal and external, that may negatively rock the management and its operational sustainability. Every business leader of the country knows that risks are present in all twists and turns. Security management plan and anent contingency are essentials to enable the management to bounce back immediately from the rapid and shifting developments that may jeopardize the fragile business management. Internal concerns, such as resource utilization, disposition and employees complaints is best responded with strategic business change management through open, participatory and transparent measures. The company must therefore be clear to its human resources of its corporate goals, targets, outcomes and results, including the operational cost to go about with its employees’ operational roles and functions. The company must be able to explicate to employees their roles and the need of measuring their performances to align routines and supply chain to corporate goals. Business leaders must be responsive too to daily concerns and problems of the employees as intervention to potential internal risks or issues. Other pertinent problems can be resolved by conduct of regular meeting to enable everyone to participate in evaluating problems and concerns. It will also give formal opportunity for the management to address issues at an administrative level. It will likewise help the management analyse the best disposition and use of operational allocation at specific condition and circumstance. Security concerns associated to criminalities and terrorism must be dealt in coordination and collaboration with police authorities and with the local government where a company is operating (Krieger & Meierrieks, 2008). Open collaboration with the police enforcement will augment business internal security problem by being updated on domestic security threats and by installing security cameras within the establishment to monitor the movement of customers within the company (Krieger & Meierrieks, 2008). Hiring security personnel will also help manage, monitor and prevent the potential security risks that may come in. Part of the corporate contingency would be to equip its human resources of knowledge on how to respond in case of terrorism or in case of criminal intrusion within the vicinity (Krieger & Meierrieks, 2008). They should also be educated on how to be resilient and to be able to provide first aid medication in cases when staff is wounded or become subject of sad critical condition. As most companies use information technology for business competitive leveraging and to interact with customers or potential business partners, it’s essential that the management must have deep knowledge on the asymmetrical threat posed by cyber-attacks and the inherent vulnerabilities of cyberspace (from security risk) (Petrescu & Popescu, 2011). The company must have high security measures for its web-based database and its IT experts must at all times be kept updated of threats posed by unscrupulous hackers. Considering the seriousness of cyber threats, imperative security measures and solutions must be comprehensively optimized in the use of information technology and be embedded also in a broad and sophisticated cyber security culture (Petrescu et.al., 2011). Companies must have contingent measures too for coherent information security policies in cooperation or collaboration with skilled public and private cyber security agents as a corporate initiative. As information security is vital for efficient and effective business development, information technology and cyber security should also be strategically addressed for better security management (Petrescu et.al., 2011). On matters pertaining to disasters brought by ecological causes or of fortuitous incidents that are obviously beyond the control of human beings, the management is required to have an integrated corporate risk reduction and mitigation plan to ascertain those products, services and its human resources, including its infrastructures, will be able to escape from harm brought by disasters and calamity (Cardona, 2005). Certainly, weather forecasts and the local government will make public announcements pertaining to typhoon, cyclone, and the like. The company must heed the government and agencies’ advisories to ascertain minimal damages (Cardona, 2005). Aside from this, it would be reasonable for the management to get insurance policies to secure property and human resources. Hence, the potential devastation brought by disaster can be relatively offset by the level of preparedness and resiliency of the management and its human resources (Guillet, 2011). Another form of risks that a company would face is the political and economic instability that may affect forex and may negatively impact to company with offshore supply chain (Nwaobi, 2008). Although some companies would prefer to trade using their local currencies to prevent forex risk exposure, but those who would take risk must avail of forex risk management techniques to avoid significant financial loses (Nwaobi, 2008). They may enforce non-hedging forex risk management e.g. price the sale in a foreign currency or by netting out foreign currency receipts with foreign currency expenditures. Another form of FX risk mitigation is by doing forward hedging where contractors to sell a set amount of foreign currency at a pre-agreed exchange rate within a determined period (Nwaobi, 2008). A business manager may also employ FX option hedging to protect from loss in case foreign currency sag. Contingency security management is indeed very vital against increasing insecurity of the economic environment and in preventing detrimental attacks against the company. It will strengthen the capacity of the company to respond to threats, crisis and disasters resiliently. References Cardona, O.D., Indicators of Disaster Risk and Risk Management, IDB Publications, US: Inter-American Development Bank, 2005, pp. 3-9. Demougin, D. M. & Schwager, R. Law enforcement and criminality: Europe vs. USA, UK: Zentrum fur Europaische Wirtschaftsforschung / Center for European Economic Research. 1999, pp. 3-7. Guillet, V., Integrating Disaster Risk Reduction and Climate Change in Coastal Zone Management (CZM) Policy and Practice: The Belize Experience: Developing a National Coastal Plan for Conservation and Development, IDB Publications, US: Inter-American Development Bank, 2011, p. 4-10. Krieger, T. & Meierrieks, D., What causes terrorism?, Center for International Economics, University of Paderborn, 2008, p. 2-5. Nwaobi, G.C., The Economics of Financial Derivative Instruments, Germany: University Library of Munich, Germany, 2008, p. 4. Petrescu, M., Popescu, M.D., & Sirbu, N. The Challenge of Ensuring Business Security in Information Age, Revista De Management Comparat International/Review Of International Comparative Management, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, 2011, vol. 12(2), pages 326-331. 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