In Spite of Terrorist Threats, Spending on Security Lagging

A new study by The Conference Board shows that, in spite of the continued threat of terrorist violence, most companies are spending approximately the same on security that they spent prior to September 11, 2001.

According to a survey of more than 330 business security directors, risk managers, and information technology security officers, there has been only a 4% median increase in security spending in the past two years. At the other end of the spectrum, only 7% of companies surveyed have increased their security spending by 50% or more.

"While nobody knows how much security spending is enough, there are legitimate concerns about corporate vulnerability," said Tom Cavanaugh, a security expert at The Conference Board and author of the study.

Most companies surveyed are relying on increased spending on insurance and risk management to confront their security needs rather than taking additional steps to guard against terrorist attacks. And the study suggests that the increase in spending on insurance may well be a result of increases in fees for existing policies rather than a cost associated with additional insurance coverage.

The study also shows that measurable increases in security spending have occurred in New York, Boston, and other cities in the northeast, whereas security spending typically has increased less than 3% in other parts of the country.

You may like these other stories...

Individuals interested in reviewing the proposed 2015 US Generally Accepted Accounting Principles (GAAP) taxonomy from the Financial Accounting Standards Board (FASB) have until October 31 to submit their written comments....
Ernst & Young 2013 audit deficiency rate 49%, regulators sayMichael Rapoport of the Wall Street Journal reported on Thursday that the Public Company Accounting Oversight Board (PCAOB) found deficiencies in 28 of the...
Read more articles by Sally Glick here.When blogging and sharing information with small- to midsize CPAs regarding how to best market your firm, one area that I want to be sure we never overlook is the importance of...

Already a member? log in here.

Upcoming CPE Webinars

Sep 9
In this session we'll discuss the types of technologies and their uses in a small accounting firm office.
Sep 10
Transfer your knowledge and experience to prepare your team for the challenges and opportunities of an accounting career.
Sep 11
This webcast will include discussions of commonly-applicable Clarified Auditing Standards for audits of non-public, non-governmental entities.
Sep 24
In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards. A dashboard condenses large amounts of data into a compact space, yet enables the end user to easily drill down into details when warranted.