Security: middle-markets firms split on spending.

• Author: Marshall, Jeffrey
• Position: BusinessBriefs

Most middle-market companies view their current spending on security as a sound investment, but a large minority sees it as an expense that must be minimized, according to The Conference Board's latest report on corporate security practices. The survey covered nearly 100 chief executives and other top officers in a wide range of mid-sized companies (with annual revenues of between $20 million and $1 billion).

The report was sponsored by the U.S. Department of Homeland Security and was prepared for The Conference Board's 2,000 corporate members around the world. The survey shows that 61 percent endorse the business case argument that security provides value for their firms and a positive return on investment, but 39 percent say that security is simply a cost that must be tightly controlled. The strongest support for security spending is in the so-called "critical industries"--transportation, energy and utilities, financial services, media and telecommunications, information technology, and healthcare. Increases in security spending are lowest among the smallest companies.

Most surveyed companies, however, report little increase in security spending since 9/11. In fact, fully 45 percent say they have not increased their spending since the terrorist attacks in 2001 and 1 percent say they have actually cut back.

Approximately 21 percent of chief executives report that they meet with their top security officer at least weekly, and an...