Commercial Security | The Cost of Crime and How to Mitigate Loss

In the current security landscape of the United States, the repercussions of physical security breaches on businesses can be extensive and multifaceted. This article delves into the various types of costs associated with such breaches and explores how modern security solutions, such as those offered by SSP, a leading commercial security provider, can significantly mitigate these risks.

Loss and Damage Costs

1. Personal Harm: Security breaches can lead to serious physical injuries or even fatalities. The Occupational Safety and Health Administration (OSHA) reported 5,333 fatal work injuries in 2019 in the United States. Advanced security technologies like access control and emergency alarm systems play a critical role in preventing unauthorized access and rapid response to emergencies, thus reducing the likelihood of such incidents.
2. Loss and Breakage: The FBI’s 2019 Crime Report indicated that property crimes in the U.S. resulted in losses of approximately $15.8 billion. The implementation of video surveillance and proactive video monitoring systems can act as a deterrent against theft and vandalism, providing real-time oversight and aiding in the quick recovery of stolen assets.
3. Regulatory Penalties: Non-compliance with security regulations can result in substantial fines. Implementing comprehensive security measures like state-of-the-art alarm systems and access controls ensures adherence to regulatory standards, thus avoiding such penalties.
4. Insurance Premium Increases: Improved security measures often lead to reduced insurance premiums. Sophisticated alarm systems and robust access control can lead to more favorable insurance terms due to the lowered risk profile of the business.
5. Litigation Costs: Robust security systems can help avert costly legal disputes. Video surveillance footage, for instance, can provide crucial evidence in legal cases.
6. Security Review and Control Upgrade Costs: Investing in modern security technologies like gate and entry telephone systems can make security reviews and upgrades more efficient and cost-effective, offering long-term security solutions.

Disruption Costs

1. Staff Morale and Productivity Loss: A secure environment, underpinned by reliable security systems, directly impacts staff morale and productivity. Security systems like video surveillance and alarm monitoring provide a sense of safety, contributing to an overall more focused and efficient workforce.
2. Additional Personnel Costs: Advanced security solutions such as proactive video monitoring can effectively cover extensive areas, reducing the reliance on manual surveillance and thereby cutting down manpower costs.
3. Business Continuity and Recovery Costs: Security technologies prevent incidents that could disrupt business operations, thereby mitigating recovery costs. Effective security measures are crucial for maintaining business continuity.

Opportunity Costs

1. Brand and Reputational Damage: A robust security infrastructure enhances a company's reputation for safety. Technologies like video surveillance and sophisticated alarm systems demonstrate a commitment to security, reducing the risk of reputational damage in the event of a breach.
2. Market Fallout and Customer Loss: Advanced security systems help retain customer trust by demonstrating a commitment to safety. This is crucial in preventing customer loss and ensuring business continuity.
3. Loss of Potential Income: Investments in security technologies safeguard against operational disruptions that could lead to significant income loss.

The Cost of Fraud 

Businesses in the US lose an estimated $32.7 billion each year due to fraud litigation, and approximately 15% of all lawsuits faced by US businesses are related to fraudulent activities. The average cost of fraud litigation for businesses in the US can vary depending on various factors such as the size of the business, the complexity of the case, and the duration of the legal proceedings. However, based on recent studies and industry reports, it is estimated that the average cost of fraud litigation for businesses in the US ranges between $500,000 to $2 million. This includes expenses related to legal fees, investigation costs, potential settlements or judgments, and any additional damages incurred during the litigation process. 

Advanced Security Solutions and Their Role in Risk Reduction

Businesses today are subject to assaults from every direction, from vandalism, theft, organized crime, fraud, and more. Each type of crime requires a unique and specific approach to combat them. Thankfully, today’s advanced security solutions can mitigate these risks. 

1. Security Alarm Systems: These systems provide immediate alerts in case of a breach, enabling rapid response to prevent or minimize harm and asset loss.
2. Access Control Systems: By regulating who can enter specific areas, these systems prevent unauthorized access, thereby reducing the risk of incidents.
3. Video Surveillance: Continuous monitoring through video surveillance deters criminal activities and aids in incident investigation. A study by the Urban Institute found that in Baltimore, camera surveillance was associated with a 30% reduction in crime in public areas.
4. Proactive Video Monitoring: This technology can detect potential security breaches before they occur, providing an additional layer of security.
5. Alarm Monitoring: These systems ensure that any breach is immediately addressed, reducing the potential for extensive damage. The Electronic Security Association reports that homes and businesses without security systems are up to 300% more likely to be broken into.
6. Gate and Entry Telephone Systems: These systems ensure controlled access to properties, significantly reducing the likelihood of unauthorized entry.

The costs and damages associated with physical security breaches in the U.S. are extensive and multifaceted. Businesses must recognize the wide-ranging impacts of these incidents and invest accordingly in robust security measures to safeguard their assets, employees, and reputation. SSP’s expertise in commercial security plays a pivotal role in guiding businesses through this complex landscape, ensuring a secure and resilient operational environment with the integration of advanced security technologies.

SSP | Physical Security for Commercial Businesses

SSP serves the state of Georgia and offers best-in-class service and custom solutions to meet clients' unique needs in every commercial vertical market and discipline. Our solutions are scalable and can grow with you as necessary and never lock you into proprietary systems that are cumbersome and without the ability to expand. If you are looking for a commercial security company in Georgia, look no further. SSP is here to serve you. Call SSP today. 1-888-540-0175