Research reveals SME’s poor security solution decision-making practices
A research report into Australian SMEs from Southern Cross Protection has revealed low levels of knowledge and confidence around choosing a business security solution.
A research report into Australian SMEs from Southern Cross Protection (SXP) has revealed low levels of knowledge and confidence around choosing a business security solution.
The 2012 Southern Cross Security Confidence Index, carried out by the Australian Chamber of Commerce and Industry (ACCI), reveals that nearly two thirds (65.9 percent) of SMEs shun professional advice before purchasing a security solution. The index also found that a further 8.9 percent of respondents indicated they simply guessed when it came to deciding on the best security options for their business.
“The results of the 2012 Security Confidence Index clearly show that Australian SMEs have a lack of understanding of security needs for their business. The statistics also highlight that SMEs lack the confidence to determine the most suitable security solution for their business,” Patrick Bourke, managing director of Southern Cross Protection, comments.
More than three quarters of respondents (77.1 percent) said their business sees an annual turnover of less than $5 million, and a large majority indicated spending up to $5000 annually in business security to protect against theft of assets and intellectual property, as well as damage to physical property and vandalism.
Despite indicating investment in security solutions, more than half of the survey respondents said they do not measure a return on such investment (55.9 percent), and in not doing so miss out on realising potential cost reductions for their business. Bourke encourages SMEs to measure return on investment for security spend or conduct a cost benefit analysis as it could mean easing costs elsewhere such as a reduced insurance premium.
On a more positive note, the index found that 80.4 percent of SMEs invested in basic measures, such as locks, to deny unauthorised access to their premises. Similarly, almost three quarters (71.0 percent) said they had invested in an alarm to deter potential intruders.
“The results of the index highlight that small business owners are at risk of security breaches as many are simply just guessing when deciding on the most appropriate security solution for their business. Action needs to be taken by the security industry in order to help SMEs develop greater awareness and better understanding of the measures they can take to ensure better protection for their business, employees, and business partners,” Bourke concludes.