Regardless of your industry, product, market or ‘niche’, good businesses can actually make money from their security and risk management investment. This ‘hidden revenue channel’ can be the result of expanding your revenue at rates and in ways not previously considered or by saving significant working capital through creation and management of profit supporting systems. Some businesses actually become so proficient with their approach….they sell/share the solution with other businesses as a service or cost sharing initiative.
It’s odd how company’s understand or embrace “self insurance”, whereby they have calculated the cost of premiums versus that of potential and frequency of losses but then don’t apply the same principle to other parts of the business…especially security and risk risk management. For example, if a business pays $200,000 for an annual product they rarely use and if activated would cost approximately $50,000….why would the continue to pay the invoice/premium when they could free up at least $150,000/year on smarter solutions? This happens a lot in security and risk management expenditure. All spend….no questions.
What if your business identifies a key system, function or service required in order to effectively managed security or risk within the organisation at the same time identifying that other businesses in their area, industry or market require the same support? Why not collaborate and cost share or on-sell this essential security/risk management support/service? Some locations, markets or industries are duplicating their costs to the tune of millions of dollars in the area of security/risk management….when other departments or consumables are already utilising this cost sharing or unsealing model.
Trusted advisers, buyer’s advocates or third party management oversight can produce profitable results for a business. If you don’t fully understand the requirement, alternatives or means in which to make something more efficient [as is common place in other business disciplines], then why not have a subject matter expert, with a varied experience help the business determine the best and most cost effective solution? It’s not unusual for this type of practice to evolve within finance, marketing, HR or operations but for some obscure reason, security/risk management is excluded.
If a business creates a unique and profitable patent for a product they license it and sell it. If they develop a more efficient means of managing resources that increase revenue, they sell it. However, when it comes to security and risk management, it rarely happens. What if businesses started pooling resources, sharing costs and benefiting from each others advanced techniques when it comes to security and risk management?
A high tide raises all boats!
Establishment of never before considered growth, marketshare or profits can be created with expert security and risk management input. Why settle for 30% returns and 10% market share when you could have 60% returns and 30% market share with better, smarter management of risk, security and operational integrations? Some businesses have never considered entering into emerging markets due to too much ‘risk’ or perceived cost, yet with an integrated plan, it can result in millions of dollars of profits for businesses that undertake a smart plan, or result in entry into a new market totally devoid of any competitors!!
These are just some of the ways advanced security/risk management can add value and revenue to a business. If you don’t already have one or more of these strategies in place within your business or haven’t yet considered options to make money from “dead money”/expenditure…then you don’t really have an effective or advanced security/risk management strategy. Businesses need to stop accepting security as a ‘cost centre’ or fail to scrutinise the business effectiveness of their strategies/expenditure due to some false “mystery’ around the craft or discipline that is advanced security and risk management.