A brand new year is upon us – and our thoughts naturally use thinking ahead to make for first time challenges. This blog targets whatever we see as the most crucial trends facing the corporate executive protection industry – and anything they means for both corporate clients as well as the specialist partners that service their EP needs.
We expect the EP industry will mature more in 2016, as specialist partners professionalize their services and operations to keep up with the prerequisites of demanding corporate clients. We feel that we will see more consolidation during the entire entire industry, as security professionals who have the ability to serve major corporations grow in expertise along with market share, and smaller firms either surrender or experience flat growth.
Like other fragmented industries, Mom and Pops continue to have a disproportionate share of the corporate EP market. Security businesses that service shopping malls and banks remain called onto provide close personal protection for corporate clients. We feel this may change a lot more in 2016.
Our industry matures alongside – indeed, is driven by – our client’s growing expectations. Corporations’ concentrate on the quality in their EP programs – and therefore in the qualifications with their EP agents and managers – will only surge in 2016. The role of your EP manager will probably be much more in focus. Consequently more emphasis is going to be put on soft skills, training and real corporate EP experience, and less on simply using a background in law enforcement or perhaps the military.
Better performance management and ongoing quality improvement programs will have an increasingly vital role on the HR side. Planning that integrates EP into overall corporate strategies, values and culture will be more commonplace. Even finance departments are often more involved as cost drivers become more transparent, and only properly funded specialist partners can undertake large-scale projects without worrying about income problems.
Ever since the businesses of practically our corporate clients are inherently global, specialist EP partners must furthermore have a broad international footprint. We should be ready to serve our clients wherever they go. This, too, indicates that smaller local and regional players will usually surface short when travel needs grow.
2016 may well be the year if the term security threat analysis gets an overhaul. An even more descriptive good name for what we should really do (albeit not quite as very easy to say) can be “executive protection and productivity enhancement”.
We have known for a long time that good corporate EP have to do more than mitigate risk. It has to also allow the principle to get more done in less time. Smooth travel logistics allow “the highest paid person inside the room” to remain more rooms in places, arrive there with less stress, and stay as productive on the highway as in your house.
We believe that is why more and more boards are putting a pencil for the derived great things about best-in-class EP programs. In addition to duty of care toward highly prominent execs and protecting shareholder value, enabling better productivity will work for C-suite principles and beneficial to business. Everything else being equal, it even boosts competitiveness.
As globalization and international instability carry on and escalate in 2016, more companies will probably be searching for more protection in additional places.
This trend will only be reinforced by other forces like increasing give attention to disparity of revenue and also the internet’s insatiable thirst for celebrity stories. The prominence of high value and ultra high value individuals and their families will increase, creating the necessity for better idea of the consequent risks, threats and vulnerabilities – and ways to mitigate them.
But we predict that requirements for secure travel will increase not just for members of the C-suite. Lower-level execs, service technicians as well as others may also be supplied with more 87dexhpky support, specifically in emerging markets. Travel, HR and legal departments will consider duty of care obligations alongside growth opportunities in unfamiliar territories – and will also be reflected in more decisions to mitigate predictable risks for travelers and expats.
We also believe the executive protection in China will continue to grow. Yes, stock market trading is tanking, but China still boasts more billionaires than even the US. We policy for growth there.
It’s a bit-known fact, but just about the most serious risks many corporate executives face derives from the inside their own personal organizations: disgruntled employees with real or perceived grudges.