Physical security can impact your stock prices: Are you prepared?

Currently, cyber security has received well-deserved attention, but that should not take your eyes away from the crucial role of physical security.

kevin thompson sextant group ceo
Kevin Thompson
January 4, 2022
min read
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Over the last few years, it has become commonplace to hear about data breaches in major companies around the world.

Sometimes it’s a list of hacked emails and passwords, other times it is the credit card information of customers.

Cyber security is rightfully a major concern for almost all companies. There is no doubt that a data breach in a company can affect a company’s stock price and lead up to an overall devaluation of the company as investor confidence starts to plummet following such announcements.

In preparation, companies invest significantly in their cyber security infrastructure and resources to safeguard themselves from such threats.

This brings us to an important question: Do these treats only come from the cyber-world? What might be the role of physical security today?

Physical security is what we mean by security in the ‘old-school’ sense. Workspace perimeter, personnel, and other physical assets like company machinery and equipment need protection too. You would also need physical security during events and conferences to protect important people in important positions. But don’t assume that physical security is important only for top-level employees. Physical security is crucial not only against threats such as burglary or physical attacks but also against risks such as fire, flood, protest vandalism, natural disaster and even terrorism.


Stock prices are affected by a lot of things. One of the important factors that determine stock prices is the Market’s sentiment towards the company and its stocks.

The overall attitude of investors towards the company will affect its stock price. A favourable attitude will result in increasing demand for shares and will increase the price of stocks.

The key for companies is to maintain a favourable attitude. What investors know and feel about a company and its prospect is greatly determined by what they read and hear about a company. Security breach does not make a piece of good news for a company.

Security breaches lead to a lot of bad press, and bad press has consequences. If handled properly, the damage caused by announcing a data breach can be controlled, but the better thing to do is to avoid being in that position altogether.


Understanding the many facets of Physical security



Physical security is a way to prevent and respond to threats. Physical security measures keep people out or away from space where they are not welcomed. Having security personnel at office spaces can deter the chances of security issues occurring. Having such deterrence in place will remove potential threats, and even if they occur, they will be met with resistance from your security.

Even in cases where a security risk emerges, well-trained security personnel can respond quickly and mitigate the threat.


Dynamic presence:

Physical security is also important to conduct a security risk assessment when entering new spaces or situations. The role of physical security can be very dynamic in these environments, as the time for assessment and response will be limited.

In these conditions, well-trained staff and close protection will be your line of defence against any kind of threat to people or property.

Unlike other forms of security, physical security through security personnel is very adaptive. They can respond to a variety of situations and are capable of quickly creating a security layer when a need arises.

Take for example, how security personnel have been able to enforce Covid-19 guidelines in corporate spaces.


Access Control:

Access control is an important way to manage the security of your office space. If you do not monitor who enters and who exits your company space, then you could be exposing yourself to a real security threat.

Access control is usually done through physical infrastructures like the good old doors, walls, and other barriers.

Nowadays, security cameras and access cards have become the norm. However, some companies rely too much on digital forms and do not have security personnel.

You should have a layer of trained professionals who are intent on preventing security breaches to supplement your access systems as well.


Accidents, Disasters and Emergency:

Despite careful planning accidents can still occur. A good physical security arrangement is going to be your first line of defence against accidents or medical emergencies.

It is important to train your staff and have someone to respond to such situations.


The role of Physical security in securing your Cyberspace


Even when considering, a lot of times the attack can come through physical means, like a flash drive, or a person walking around with a recording device. Not everything can be done from behind a screen, and attackers will try to gain physical access to capture data or gain access to computer networks.

The correct way to think of this is not to see a dichotomy of cyber security and physical security, but to understand security in a holistic way and see that one is not without the other.

Without this understanding of interdependent security measures, many companies focus only on cyber security and overlook their physical security. Overall, Physical security is more than standing guard and waiting for something to happen.


A good example that sends the message home is the story of Edward Snowden. He managed to leak National security agency data to journalists as he physically downloaded and leaked thousands of classified documents. Furthermore, physical security has an important role in determining who gets access to places where data is stored.

Advances in newer technologies like the Internet of Things (IoT) creates a demand to safeguard data, servers, and networks. The rising interconnectedness of IoT has expanded the sphere of physical security. Cyberspaces are only as protected as their physical servers.


Companies should not fail to consider the crucial role of physical security, and how it can prevent security threats to a company while creating their security strategy. It is important to remember good physical (and cyber) security leads to better-performing securities, pun intended.


In conclusion, to run a company effectively you need good control over the company. A good security strategy will protect you from any threats to your organization or the people within your organization. It is not only about external threats, but also the internal threats; a good physical security presence will also help you identify emerging threats within your own organization.

A sense of control and security of your physical assets and human resources will be reflected in the overall image of your company.

Sextant Group reduce risk globally through systematic security solutions in the form of close protection, asset protection and residential security.

As a team we take immense pride in providing the most in-depth security training for the next generation of security personnel via our close protection courses UK & our door supervisor course.

Both of which hold the highest employment rates within the industry.

kevin thompson ceo sextant group uk
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