A new report by the Security Executive Council’s Security Leadership Research Institute (SLRI) presents a range of benchmarking data unavailable in other studies, but more work needs to be done.

Companies have long recognized the value of benchmarking performance, IT operations, and numerous other functions of business. However, though businesses often ask for reliable security-related benchmarks, few have been developed, says Kathleen Kotwica, EVP and Chief Knowledge Strategist for the Security Executive Council. "There is no easy way to compare apples to apples in the security world,"she says. "What most businesses want is to benchmark within their industry or sector. A defense company wants to find out how it compares in the defense industry, not necessarily in a field of businesses that includes media companies and retail. The drivers for security in those environments are completely different." Continue Reading…

Congressional lawmakers consider rewriting the U.S. tax code for closely held businesses, including those organized as partnerships, S corporations and limited liability companies.

This could have a dramatic negative effect on the owners of these corporations as they operate the company; and on the net proceeds from an eventual sale of the operating assets. Continue Reading…

Is there still hope for hourly and salaried employment in the retail industry?? Yes…maybe…alright well who knows for sure! But at least one month ago things looked promising. In an article from USA Today, retailers experienced "the best June sales figures in the U.S. since 1999." The increase in consumer spending had definitely confounded investors as they assumed there would be a decrease due to raising gas prices. Today, retailers aren’t so sure those numbers will hold. Continue Reading…

There are many attractive, small to medium sized, private security companies in the market today that would be a good acquisition for the generous buyers – and the owners would like to sell. The problem for some of these would-be sellers is that their companies do not have the financial information in place to prove the company’s real worth, so the owners can’t get the premium they’re expecting and deserve.

Buyers for private contact security companies today are still looking at the types of accounts, geographic operating territory, number of armed guards, average site size, quality of management going with the sale, etc. as a way to establish its initial interest in a selling company. The buyers are also placing a lot of importance on the seller’s reported profits at the site level. The seasoned buyer will know how much it takes to run a branch and administrative office, irrespective of what it may be costing the seller, so the profits (or losses) at these levels are not nearly as important to the valuation. But there’s not much the buyer can do to improve on the profit at the site level without jeopardizing the relationship with the account.

Continue Reading…

The damage has also triggered a debate about whether the earthquake will be a market-changing event for the insurance sector.

Since the start of the year natural disasters, including the Queensland floods and the quake in New Zealand, have wreaked havoc on the insurance and reinsurance industries, leaving the sector exposed to more than $50 billion in damages since January 1.

With so many catastrophes, the expectation is that prices will be pushed higher in the July 1 reinsurance renewals. If prices rise, general insurers will be forced to pass them on in higher premiums.

The insurance industry has been suffering from a so-called soft market in recent years. That happens when their prices come under pressure as insurers and reinsurers have lots of spare capital and compete more for business.

Lloyd’s of London syndicates will no doubt be doing due diligence on their exposure.

A spokeswoman said: "It is far too early for us to comment on any potential business impact but, as ever, our efforts will be focused on dealing with claims quickly and helping people and businesses recover."

QBE Insurance is one of the biggest writers of Lloyd’s insurance.

Andrew Chester, managing director at Bowring Marsh, insurance broker Marsh’s specialist international placement broker, said it was too early to determine whether it was a market-changing event. He said that because of the Chile and New Zealand earthquakes, and the Australian floods, there was an increasing focus on catastrophe risks and the prices markets were willing to charge for those events.

Jamil Samaha, a global macro portfolio manager at CQS, the $US10 billion multi- strategy asset management firm led by Michael Hintze, said there would be a hit to the economy in the short term, but more growth later.

"The commercial impacts are potentially very significant. Historically, we have seen insurance and reinsurance companies take significant one-off hits by these types of extreme natural phenomena, but they are typically able to recoup these losses through sharply higher premiums."