“Cobra Beer may brew in Indian market soon” (The Week, 23 Jul 2023). In 2008, taking advantage of the favorable liquor policy introduced by state of Bihar, India, Cobra Beer entered the market. Their business was growing @50% a year – it wanted to scale up production from 500,000 cases a month to 700,000 cases by 2016. The dream run of Cobra Beer was abruptly disrupted. Amidst growing protests from women & political opponents, the state – with the same CM at the helm – did a policy U-turn and introduced prohibition in 2016. Cobra beer exited the market.
Stories abound – of high price paid by companies who invested in countries w/o adequate geopolitical or local risk assessment or put trust in inadequately verified JV partners.
In today’s dynamic & volatile world, corporate security leaders can make much contribution to commercial success – by safeguarding people & assets, facilitating growth & competitiveness, identifying geopolitical & business risks on the horizon and spotting opportunities. Chief Security Officer (CSOs) must add value across the value chain.
MNCs face an array of risks – the conflicts in Europe, Middle East & Africa, technological disruptions, cyber security breaches, regulatory overdrive, impact of climate change, pandemics, social protests, inflation, unemployment & insider threats. Geopolitics is impacting businesses & supply chains, market entry & exit, and security of business leaders. Disinformation causes reputational, financial & security risks. Social media proliferation has increased the risk of activism & misinformation. Risks vary across sectors & geographies. Defence majors, banks & those holding customer data prioritize compliance & info sec, precious metal companies – organized crime, data centers – insider threats, banks – frauds & pharma majors – IP theft & counterfeits.
Chief Security Officer (CSOs) must adopt a strategic & proactive approach, understand their business well, align security with the overall vision & strategy, use tech as an ally, and build high performance teams. They must balance risks with opportunities. Chief Security Officer (CSOs) must use intel teams to anticipate risks on the horizon and value add to improve outcomes – be it in market entry, M&A, or supply chain resilience. Security must be incorporated early in the planning cycle – while entering new markets, building new products or facility.
Chief Security Officer (CSOs) have good external networks – with peers, LEAs & fire officials, local admin & emergency services – these provide useful insights, pre-warning & support in emergencies. Chief Security Officer (CSOs) must collaborate to add value internally & lead during crises.