Invest in security

Chief Executive, The, Dec, 2004 by Greg Pellegrino

You recently posed the rhetorical but provocative question "Are You Ready?" (Cover Story, August/September). Clearly, from the reporting that went into the article, your answer is unequivocal: Many companies aren't doing enough to assure their own security.

The problem is that many senior executives don't consider security to be a strategic imperative. As a result, they aren't willing to absorb the initial cost of doing such business. We all understand that, as compelling an argument as one can make to spend whatever it takes to be safe and secure, the financial realities facing a CEO often undercut it.

Corporations have three options: ignore security risks, a dangerous and shortsighted choice; opt for minimal compliance, although the adage "you get what you pay for" applies here; or, most sensibly, make security a strategic issue--an opportunity to create business value and realize a positive return on a security investment.

Make no mistake: Security investments can have real, measurable business benefits. They can be leveraged to drive more efficiency into the supply chain, lowering costs and raising productivity. They can help companies increase revenues by slashing the amount of time their goods aren't out on the shelves. And they can help preserve and protect a company's brand, often its most valuable asset.

Greg Pellegrino

Global Managing Dir., Public Sector

Deloitte & Touche

Boston, Mass.