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Security as a Profit Protector

REDEFINING THE ROLE OF SECURITY IN THE CORPORATE WORLD

ANIL PURI
CMD, APS Group

A first generation serial entrepreneur, thought leader and an action catalyzer rolled into one – Anil Puri is a rare combination of a visionary, an innovator and a strategic thinker. He has used this combination to innovate and implement on-ground many new business ideas. His rich experience in various businesses has enabled him to nurture & mentor innovative ideas and scale them up.

“In a world of rising risks, security is the new RoI”

Introduction

In today’s volatile, unpredictable, complex, and ambiguous (VUCA) world, corporations face a wide range of threats – cyber, physical, reputational, and geopolitical. Security, once considered a passive cost burden, is now being redefined as an active protector of profits, business continuity, and corporate reputation. With rising incidents of cyberattacks, insider threats, industrial sabotage, and disruptions caused by natural disasters and civil unrest, the role of corporate security has expanded from guarding gates to safeguarding value chains. It makes a bold move and great sense to transform the corporate mindset – from viewing security as a cost center to appreciating it as a strategic investment that protects profits, fuels resilience, and builds competitive advantage in the global market.

“When security leads, losses retreat”

1.Understanding the Legacy Perception: Security as a Cost Center

Security was traditionally viewed as a non-productive overhead. Historically, security was confined to physical guarding, with minimal alignment to strategic business goals. This perception relegated it to a cost on the profit and loss account without tangible contribution to revenue or growth. Security budgeting is often reactive and not outcome-linked. Corporate boards often allocate security budgets after an incident, making it reactive rather than preventive. There’s minimal linkage between security inputs and organizational outcomes or profitability. RoI of security investments is difficult to quantify.

Unlike marketing or production where inputs and outputs can be directly measured, the returns from security (e.g., prevention of incidents, reputation protection etc.,) are intangible. This causes reluctance in investing significantly in security measures – poor integration with business strategy. In many organizations, security functions operate in silos without integration with operations, HR, finance, or IT, further weakening their strategic relevance and visibility.

2.Evolving Threat Landscape: A Paradigm Shift in Risk Perception

Every breach avoided is revenue protected – security is silent profitability

Rise of hybrid and complex threats

Modern threats are no longer isolated – cyber and physical threats now converge. For instance, a disgruntled insider can physically access a server room and launch a ransomware attack. This hybrid nature makes security far more strategic.

Globalization and expanded risk perimeters

Global supply chains, remote operations, and digital platforms mean that organizations now face risks from multiple geographies, jurisdictions, and threat actors – ranging from state-sponsored espionage to transnational crime networks.

Political, economic, and environmental risks

Geopolitical tensions, trade wars, climate-induced disasters, and pandemics like COVID-19 have demonstrated how non-traditional threats can cripple operations and cause massive financial losses.

Regulatory tightening and compliance pressures

From GDPR in Europe to India’s Digital Personal Data Protection Act, and evolving ESG norms – security and privacy compliance have become core to business licensing, investor trust, and global market access.

Increased accountability of C-suite and Boards

Security breaches now result in reputational damage, legal scrutiny, and even removal of CXOs. Leadership is increasingly accountable for lapses in data protection, crisis management, and employee safety.

“Security transforms from expense to asset the moment a threat is blocked”

3.Security as a Profit Protector: Strategic Reframing

Loss prevention equals profit protection

Security measures reduce theft, fraud, and operational disruptions – translating directly to cost savings and enhanced margins. Retail chains globally invest heavily in surveillance and analytics to prevent inventory loss (shrinkage).

Security sustains business continuity and investor confidence

A well-secured environment ensures minimal operational downtime during crises, assuring investors and clients of organizational resilience. For example, firms with robust Business Continuity Plans (BCP) performed better during the COVID-19 lockdown.

Brand trust is rooted in security and compliance

Customers, regulators, and stakeholders are more loyal to companies that protect their data, ensure safe workplaces, and comply with laws. A breach in security can wipe out years of brand building – as seen in high-profile data leaks.

Security mitigates legal and regulatory penalties

Failure to implement adequate security can lead to lawsuits, sanctions, and insurance claim denials. Proactive compliance with security standards (e.g., ISO 27001, ISO 18788) reduces liabilities.

Cybersecurity is a competitive differentiator

In sectors like BFSI, IT, and e-commerce, robust cyber defense systems enhance customer confidence, driving sales and global competitiveness.

“No margin is safe without protection – security defends the bottom line”

“In today’s volatile, unpredictable, complex, and ambiguous (VUCA) world, corporations face a wide range of threats – cyber, physical, reputational, and geopolitical. Security, once considered a passive cost burden, is now being redefined as an active protector of profits, business continuity, and corporate reputation. With rising incidents of cyberattacks, insider threats, industrial sabotage, and disruptions caused by natural disasters and civil unrest, the role of corporate security has expanded from guarding gates to safeguarding value chains”

4.Case Studies: Global and Indian Examples

Target Corporation, USA.

A 2013 data breach led to 40 million customer credit card details being stolen. The company faced $200 million in losses and lost customer trust. Since then, they have invested heavily in cybersecurity, positioning themselves as an industry leader in retail security.

Tata Consultancy Services (TCS), India

TCS integrates information security within its project lifecycle, ensuring client data protection and compliance with global norms like GDPR. This has made it a preferred vendor for Fortune 500 clients.

Taj Mumbai 26/ 11 Attack Response

During the 2008 Mumbai attacks, security and hotel staff protected guests and facilitated emergency evacuation. Their preparedness became a global case study in disaster response and resilience.

Amazon’s Security Architecture

Amazon deploys AI-driven surveillance, warehouse robotics, and encrypted data architecture to ensure smooth operations even under peak demand. This contributes directly to customer satisfaction and profitability.

“In today’s corporate battlefield, security is your profit’s frontline defense”

5.Transforming Private Security Services into Profit Enablers

Upskilling guards to multi-functional security professionals

Modern security professionals need skills in access control, crisis response, emergency medical aid, cyber hygiene, and conflict de-escalation. Competency-Based Training (CBT) and simulation exercises ensure readiness.

Use of technology to deliver efficient and scalable security services

Security agencies can leverage drones, facial recognition, AI-based surveillance, and smart patrolling to provide high-quality services at lower costs. These tech integrations help clients optimize budgets and performance.

Guarding as a service model – Not just manpower supply

Leading PSAs (Private Security Agencies) now offer bundled services – integrated command centers, incident reporting apps, KPI dashboards, and compliance audits. This shifts the model from labor-intensive to value-driven one.

Aligning with ESG and sustainability Goals

Security measures that reduce physical damage, environmental hazards, or ensure workplace safety contribute to ESG metrics, attracting investors and partners.

“Security isn’t a cost – it’s the shield that guards your profits”

6.Strategic Recommendations

Corporates should view security as an investment in enterprise value

Security must be included in strategic planning, budgeting, and boardroom decisions. Like marketing and R&D, it protects and builds long-term shareholder value.

Embed security in digital transformation journeys

Whether implementing ERP, cloud migration, or e-commerce platforms, cybersecurity, and data privacy must be integral – ensuring resilience from Day 1.

Security leadership must be elevated to C-suite levels

Appointing Chief Security Officers (CSOs) with decision-making authority ensures integration with risk, legal, and IT functions.

Mandate global security standards and certifications

Companies and PSAs should adopt ISO 18788 (Security Operations), ISO 22301 (Business Continuity), and ISO 27001 (Information Security) to professionalize practices.

Build public-private security collaboration

Private security must be part of national disaster preparedness, urban safety programs, and infrastructure protection, acting as a ‘second line of defense.’

“Profit is what you make – security is what lets you keep it”

Conclusion

Security is no longer about guards and gates; it is about securing enterprise value, trust, and continuity. The private security industry, if restructured and re-skilled, can evolve into a vital enabler of business profitability. Corporates must redefine their approach – from viewing security as a liability to recognizing it as a strategic asset and profit protector. As India moves towards becoming a $5 trillion economy, security must be central to the vision of resilient, globally competitive, and responsible enterprise growth.



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