Physical resilience cannot be ignored as cyber remains primary security focus – Kroll

Changes in the world’s geopolitical and security environment over the past two years present a clear sign that global businesses cannot afford to ignore physical security threats – despite much of recent risk management focus being centred on cyber vulnerabilities, according to Nick Doyle, managing director at risk and financial advisory Kroll.

Doyle, who is also Kroll’s head of Europe, Middle East and Africa and Asia Pacific enterprise security risk management practice, was addressing delegates at the Federation of European Risk Management Associations’ (Ferma) Forum 2024 event, held in Madrid between 20 and 22 October 2024.

He said: “Businesses and their financial success have a significant effect in their local communities and, in many cases, their national economies.

“We have seen with the issue around access to the Suez Canal due [to] ongoing attacks in shipping and the restrictions placed on the Panama Canal due to a lack of water that the supply chain can be dramatically and significantly affected, which can cause issues for businesses of all sizes.”

Doyle added that companies needed to focus on greater resilience – and this does not solely mean cyber resilience.

“Business resilience is a key management strategy,” he continued. “You should be planning for business continuity across a range of potential threats, not just a cyber attack.

“[Businesses] need detailed plans for when things go wrong. You need to identify any vulnerabilities and put systems in place to secure those vulnerabilities.”

Terror strikes

Doyle explained that many businesses were facing new threats from both inside and outside their organisations – for example, where activists have sought to target and disrupt companies which they think go against their beliefs.

“The rise in activism has been well documented,” Doyle explained. “Perhaps the biggest threat is from so-called silent activists who are on the company’s staff, as they have access to the business and its systems.”

One recent example, from October 2024, saw protest group Palestine Action target 10 Allianz offices across the UK over the insurer’s alleged involvement with Israeli weapons firm Elbit Systems.

Also in October, global environmental group Extinction Rebellion occupied The Gherkin in London – where reinsurer Swiss Re is based – to protest against insurance firms providing cover for new fossil fuel projects.

“Terrorism has not gone away,” Doyle added. “In recent weeks, the head of MI5 has revealed the security services have foiled 43 attempts to attack targets in the UK since 2019. Businesses must be prepared.

“China has warned its population that there is likely to be a war in future years.”

He concluded: “If you look at how the environment has changed in the past two years, it is all the more reason for organisations to be prepared.

“Resilience has to be the major focus for business.”