AUGUST 5, 2004
NEWS ANALYSIS
By Paul Magnusson

Security: What Companies Need to Do
[Page 2 of 2]

CHEAP SAFEGUARDS.  He and others say they're typically called in to evaluate physical security and advise companies on what's missing. The next step -- only lately being undertaken by companies outside the high-risk zones -- is to add such enhancements as off-site emergency offices and data storage to their capital budgets. James Lee Witt, the Clinton Administration's disaster chief and now a private consultant, recently drew up such plans for clients ranging from the University of Southern California to Nextel (NXTL ), in addition to reviewing emergency plans for Entergy's (ETR ) Indian Point nuclear plant near New York City.


For companies outside major urban areas that feel they have already taken sufficient precautions, cost is a big issue. With the recession still fresh in execs' minds, many remain unwilling to spend on anything that won't generate profits. In the absence of official security mandates, many "are reluctant to spend money if their competitors aren't doing the same because they fear it could put them at a cost disadvantage," says Randall Larsen, CEO of Alexandria (Va.) consultant Homeland Security Associates.

Yet not all the solutions are costly. Security cameras outfitted with software to recognize unusual situations or movements can replace guards. Blastproofing windows with special films could avert injuries from explosions. Planning in advance for off-site workspace or communications in the event of an emergency can get a company up and running quickly after an attack. And smart companies give their workers an 800 number to call in emergencies.

THICK WALLS, LOW PROFILE.  Along with upgrading security cameras, bolstering ID checks, and improving other on-site protections, security experts argue that more companies, particularly outside the Washington-to-Boston corridor, need to strengthen what's known as "business continuity planning." Unmarked buildings such as one data center in an unremarkable office park near Dulles International Airport serve as insurance against both terrorist assault and natural disasters.

The facility was built to house Web and database servers and communications gear for financial institutions and others. Its windows are fake and the exterior walls are constructed with a sandwich of blast-proof Kevlar between two layers of concrete block. Power comes from two separate mains, with a diesel generator for blackouts. Access is through double doors by a biometric handprint reader.

The good news, experts say, is that business is starting to look to leading industries, such as financial services, as a model. Business Executives for National Security, a Washington-based group of CEO volunteers, is spearheading an effort in New Jersey to create a database of trucks, food, and medicine that could be used in an emergency. The group is even pestering the federal government to do a better job of backing up its own financial data.

SLOWLY LEARNING.  Steve Chupa, security director of a large company in New Jersey, even has some praise for Washington for identifying buildings targeted by al Qaeda. "It doesn't matter so much that the information [the Homeland Security Dept.] is giving us is dated," he says. "The lesson is, they're finally sharing."

No doubt business remains on a steep learning curve. But the lessons of September 11 and its aftermath -- plus hurricanes, blackouts, and computer glitches -- are starting to spread. Is America safe? Not yet -- and it has a long way to go.

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With Emily Thornton, Diane Brady, and Spencer Ante in New York, with bureau reports
Magnusson writes for BusinessWeek in Washington, D.C.

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