Daily Archives: 18/06/2014

PwC: ‘Businesses must wake up to global risks in order to maximise competitive advantage’

New and emerging operational threats to business will challenge an organisation’s existing risk management, business continuity, IT crisis management and information security processes.

Business leaders are not doing enough to prepare for the risks that arise from an increasingly inter-connected world, such as social instability, debt crises and extreme weather events.

The warning was issued by industry experts from PwC, the Institute of Directors, Airmic, Marsh and Zurich in advance of the ‘Responding to Global Risks’ panel event taking place next week.

Simon Walker, director general of the IoD, will participate in the debate alongside industry experts including James Crask, business resilience specialist at PwC. The discussion will examine the ‘Responding to Global Risks’ report, which was written by industry experts from the IoD, Airmic, Marsh, PwC and Zurich. The survey builds on the World Economic Forum’s Global Risk 2014 report, giving company directors tools to manage risk not only in order to avoid disasters, but also to identify opportunities that will help gain a competitive advantage.

Businesses must wake up to global risks in order to maximise competitive advantage

Businesses must wake up to global risks in order to maximise competitive advantage

James Crask, senior manager at PwC, explained: “Enterprise resilience is not just about surviving in the present. It’s about having the foresight, capability and agility to adapt and evolve. The relentless pressure on businesses to cut costs while enhancing their long-term prospects of survival means that agility can sometimes be at odds with the requirement for robust protection mechanisms. For many, this can result in poorly considered investments in resilience. The ‘buffers’ that contribute to resilience are increasingly seen as an unnecessary expense and are removed to reduce costs.”

Businesses could be harming their longevity

Organisations failing to consider the wider factors that contribute towards resilience could be harming their longevity. A mature business will generally mix operational activities (which aim to address shorter-term risks and impacts) with a consideration of a wider range of resilience factors that draw on the characteristics defining the business and which can guide its decision-making.

However, few businesses have identified these wider elements clearly and consistently in every department and at every level. By way of an example, creating a code of values is useless, state PwC experts, if only half of the workforce identify with it.

Richard Sykes – head of governance, risk and compliance at PwC – stated: “While very important, simply delivering robust risk management activities such as business continuity or IT resilience will not be enough to safeguard a sustainable future and enhance reputations. An organisation’s resilience is about much more than good risk management. It’s dependent on a wide variety of factors that can be measured and leveraged to enhance responsiveness and agility in the wake of upheaval.”

Sykes went on to state: “The most resilient organisations are likely to combine these attributes with a commonly shared set of corporate values aligned with behaviours. They will harness a strong understanding of their business and its context, possess the ability to innovate and also maintain high levels of trust and loyalty from customers and staff.”

In conclusion, Sykes explained: “Leadership also plays a critical role in building resilience, but this can only have maximum impact if it’s allied with the empowerment of those on the ‘shop floor’. Trusting workers to make the right decisions and exhibit Best Practice behaviours also helps to enhance resilience and prevent reputational damage.”

For more information visit: http://www.director.co.uk/Content/PDFs/Responding-to-global-risks-web-edition.pdf

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The Shield Group named UK’s ‘Security Solutions Specialist of the Year’

The Shield Group – the UK’s largest independent Total Security Solutions provider – has been named ‘Security Solutions Specialist of the Year’ at Acquisition International’s prestigious M&A Awards 2014.

Now in its third year, AI’s M&A Awards recognise and celebrate the stellar achievements of financial advisers, financiers and service providers pinpointed for demonstrable expertise in their specialised fields, with each award category being nominated for by clients and peers.

The awards are bestowed solely on the basis of merit to commend exceptional service over the last 12 months.

Acquisition International is a popular monthly financial magazine with a global circulation positioned to reach influential deal makers and senior financial professionals.

Leading national security provider

The Shield Group is an award-winning total security solutions company which has been at the forefront of the industry since its inception 25 years ago. The group has been recognised following a successful acquisition by India’s largest security company, Topsgrup, which was led by executive chairman Dr Richie Nanda.

Dr Richie Nanda: executive chairman at The Shield Group

Dr Richie Nanda: executive chairman at The Shield Group

In July 2012, Dr Nanda completed a £19.5 million acquisition of The Shield Group, initiated with a 51% controlling stake in 2008. The acquisition enabled the company to make vital in-roads into the regional UK security market, in turn transforming The Shield Group into a leading national security provider.

The company has since launched several new offices across the UK, including its regional headquarters in Manchester, increased staffing numbers to 2,500 and the number of customers it serves to 400.

In addition, The Shield Group has hired seven managing and regional directors, invested over £1 million to realise an NSI Gold certified Alarm Monitoring Centre in Preston and launched new business divisions – Shield Guarding and Shield Strategic Solutions with sub-verticals Shield Consults, Shield Monitoring Services and Shield Vetting – to offer bespoke security services to clients.

Furthermore, under Dr Nanda’s leadership the business has secured a number of high-profile contracts, including The Imperial War Museum and Bournemouth University.

All of these changes helped increase revenues from £61 million (2013) to £81million (projected for 2014).

With a growth in EBIDTA of 67% from the last financial year, the combined turnover for Topsgrup and Shield this financial year is expected to be £170 million.

Increased growth, new business wins

“We are truly excited to have been named the Security Solutions Specialist of the Year,” said Dr Richie Nanda. “We have had an exceptional 12 months with increasing growth and new business wins. This award is testament to the team’s remarkable work ethic and our world class services and products. Though this award brings great pride to The Shield Group, it also brings a lot of responsibility and we endeavour to uphold the trust and loyalty that our clients place in our services.”

John Roddy: CEO at The Shield Group

John Roddy: CEO at The Shield Group

Also speaking about the award win, John Roddy (CEO of The Shield Group) added: “This is great news. I’m pleased for everyone at The Shield Group. We place a lot of emphasis on our specialised security model, Total Security Solutions (TSS), which is paying dividends. The acquisition from Topsgrup has allowed us to combine expertise and innovative knowledge to better our offering to clients while at the same time benefiting from economies of scale. This is further endorsement of our benchmarking security solution offering, and we look forward to the challenge of continuing the tradition of pushing innovation within the sector.”

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