For small business owners, the cost of investing in security surveillance can be alarming. However, what’s more concerning is the potential cost to the business if security measures aren’t implemented. Billions of dollars worth of stock and profits are lost by businesses each year as a result of inefficient security setups. Many business owners opt for a DIY solution that offers some security presence, but it can leave serious gaps that will cost your business much more than it is worth. Security specialists Chartercom Security have provided a few compelling reasons why business owners should invest in a professional security system.
Brand reputation
Whether a business is a traditional brick-and-mortar store or operates online, its reputation is instrumental to its future success. Physical and cyber threats can significantly impact a business’s reputation. Businesses that become subject to theft may gain the stigma of being an easy target, thus making them fall victim to repeat offenders. This reputation may also deter buyers from purchasing from the business, which will impact sales revenue and profits.
Cyber threats can significantly impact the reputation as a business. Several businesses fall victim to online security breaches that could see their business’s website go offline, become infected, have their data breached or even affect the security of potential customers. As people become aware of the security threats, they will be deterred from engaging in business and the reputation could affect sales and referrals drastically.
Shrinkage costs
In 2010, the ABC reported that $2 billion in losses for Australian businesses were a result of employee theft. Disloyal employees can account for profit reductions of up to 40% and has been cited as the number one reason for profit loss when compared to external theft. Employee theft occurs from:
- Incorrectly priced stock
- Inaccurate accounting
- False refunds
- Discounts to family and friends
- Physically stealing stock
Many businesses that suffered from retail crime were unequipped with the right security setups such as CCTV cameras, alarm systems or security patrols; adding to the risk of internal theft and shrinkage.
Staff safety
It is every business’s responsibility to provide a safe workplace for employees. Staff may face threats such as attacks from other co-workers or customers or intruders. Businesses can foster a safer working environment by:
- Providing supervision of staff with managers to reduce the risk of occupational risks or assault.
- Installing security equipment and hiring personnel to deter the risk of physical assault against staff.
Business operations
When the security of a business is breached, it could severely impact its operations. Businesses that have been subject to theft and physical assault may need to shut down operations while staff are being counselled. Inventory stock or equipment may need to be replaced as well.
Data theft
Another issue that could pose a risk to the business’s operations is potential breach of customer data. Sensitive data such as customers personal and financial data could expose them to fraudulent scams. Should this occur, the business would need to rectify the situation before proceeding with other operations.
Businesses also need to be vigilant when it comes to staff handling sensitive data. Disgruntled or careless employees may expose the business to security risks by leaving phones in taxis, not updating security passwords or encryptions or mismanagement of third party service providers.
Security is an issue that every business needs to deal with. Opting for a DIY solution can save you money in the short-term, however it can cost businesses a lot more over the long-term. It is in a business’s best interest to go with a specialist security service provider that can cover all security risks for the business, which will improve safety and provide business owners with more peace of mind.
Article Submitted By Community Writer
