Disaster Recovery Journal- Volume 13, Issue 3 - Summer 2004 Issue -From the Publisher's Desk

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Summer 2004 Issue

DISASTER RECOVERY
JOURNAL

P. O. Box 510110
St. Louis, MO 63151
(314) 894-0276
Fax: (314) 894-7474
Internet www.drj.com
E-mail drj@drj.com

PUBLISHER &
EDITOR-IN-CHIEF
Richard L. Arnold, CBCP
richard@drj.com

SENIOR EDITOR
Janette Ballman
janette@drj.com

MANAGING EDITOR
Jon Seals
jon@drj.com

ASSOCIATE EDITOR
Ed Pearce, CBCP
ed@drj.com

COPY EDITORS
Richard Sandhofer
richards@drj.com
Pamela Clifton
pamelaclifton@hotmail.com

ADVERTISING
Robert Arnold
bob@drj.com

_____________

Corporate

President/CEO
Richard L. Arnold, CBCP
richard@drj.com

Vice President
Robert Arnold
bob@drj.com

CONFERENCE COORDINATOR
Patti Fitzgerald, CBCP
patti@drj.com

CONFERENCE REGISTRAR
Merce Knese
mercedes@drj.com

CIRCULATION
Laura Baugh
laurab@drj.com

EXECUTIVE COUNCIL
Jeff Dato, MBCP, KPMG
John Jackson, IBM
Edward S. Devlin, E.S. Devlin & Associates
James Hammill, CBCP, JMH Consulting Inc.
Pat McAnally, SunGard Availability Services
Brian Turley, Strohl Systems
Belinda Wilson, Hewlett-Packard

INTERNATIONAL
CONTACTS
England: Thom Hetherington
Business Continuity
Phone: 0161-237-1007
thomh@tempus.demon.co.uk

Australia: Anthony J. Harvey
Journal of Business Continuity
Phone: 0011-613-953-0055-8
fax: 0011-613-953-0528
sector@notability.com.au

Japan: Shinji Hosotsubo
Quake Japan Co., Ltd.
Phone: 03-3215-2880
fax: 03-3215-2881

Brazil: Jose Carlos Ferreira
Disaster Recovery Mercosul
Phone: 55 11 3666-9506
conc2000@uol.com.br
www.drms.com.br

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The Balance Between Security and Economics

by Richard L. Arnold, CBCP

I have long been an advocate for security and disaster preparedness. As a pioneer in this industry, I have watched the business continuity expand into areas outside of the data center. I have witnessed contingency planning grow into a booming industry that attempts to protect businesses from any possible interruption. On the whole, we have done an excellent job of meeting these demands.
But since Sept. 11, 2001, the demands for total protection have continued to grow. Security has become a No. 1 priority for the entire nation. The creation of the Homeland Security Department has certainly been an asset in deterring more terrorist activity, and I am definitely a supporter of keeping our nation safe. But have we reached a point where security costs are deterring growth in other areas?
I know many continuity planners who are struggling to gain funding for their departments. Many important aspects – testing plans, purchasing hardware, software and other equipment – have been put on hold as planners wait for budgets to increase. Personnel have been cut, and many are now doing the jobs of several people.
Yet, at the same time, security budgets have grown at an alarming rate. In the private sector, this money comes from within the company and often that cost is passed on to the consumer.
The Council of Economic Advisers estimates “that private business spent approximately $55 billion per year on private security before the Sept. 11 attacks. As a result of the attacks, their annual costs of fighting terrorism may increase by 50 to 100 percent.”
In the public sector, security costs are also having an impact on the economy. In 2004, the United States will spend nearly $100 billion on homeland security, according to the National Strategy report. This includes the services of federal, state and local law enforcement and emergency services, but excludes most spending for the armed forces.
These costs have climbed sharply since the 2001 attacks. Some $17 billion was allocated to homeland security in 2001. In 2002, the amount increased to $29 billion. In 2003, the number rose to $38 billion.
That is a staggering amount of funding. These resources are going to a good cause, but at the same time, that is money that can’t be used for goods, services or private sector investments.
What is the solution? Do we take the approach used by other countries – where attacks are somewhat commonplace and are treated as such? Is there a way to prioritize what areas are most vulnerable? Can we find a balance?
The National Strategy for Homeland Security recommends carefully weighing the benefits of each security endeavor and allocating resources only where the benefits are worth additional costs. But, who should make those decisions? And how will the economy fare in the meantime?
In many ways, watching the security industry struggle to find answers is a lot like watching the early days of business continuity. There were many unanswered questions and problems to resolve. Our industry managed to overcome these obstacles; I’m hoping the security industry will fare as well.
I look forward to networking with our readers on this topic and many others at our upcoming conference.
Fall World 2004 will be held in San Diego, Sept. 19-22. Make plans to attend, so we can share opinions and solutions regarding BCP for terrorism and various compliance issues. Sign up early to take advantage of our discounts. There are almost 600 people registered so far, so make sure to reserve your seat for the premier BCP conference in North America.
For information, visit www.drj.com.