LESSON : CHAPTER 8 : SECURITY RISK ANALYSIS

Learning Objectives

At the end of this chapter, the student will be able to:

1. Identify the factors to assess in defining the security problem;

2. Enumerate security hazards and provide examples;
3. Enumerate the major categories of risks; and
4. Enumerate risk management alternatives and strategies.

Security and risk analyses are the reasons for all security activities whatever problems are involved, be it cash, negotiable
instruments, permanent assets and fixtures or even intangible assets like trade secrets. Unless actual assessment of threats to
assets is done, precautions and countermeasures cannot be presumed. The significance of a security program depends not only
upon the excellence of the resources, but upon their appropriateness and relevance. In this process, determination of the problem
must be initially done followed by formulation of countermeasures.

Security Analysis

When an organization makes a decision to protect its assets, it is necessary to clearly understand the actual threats to assets
through an effective security plan. Without the security plan, decision-makers will have to rely on guesswork in choosing the
precautions and countermeasures against threats.

Defining the Problem

Defining a security problem involves an accurate assessment of three factors (POA Publishing LLC, 2003):

I. Loss Event Profile - the kinds of threats or risks affecting the assets to be safeguarded. This is the first step in dealing
with asset vulnerability. It requires recognizing individual loss events that might occur by having clear ideas about the
kinds of risks as well as about the conditions, circumstances, objects, activities and relationships that can produce the
loss events.
II. Loss Event Probability - the probability of those threats becoming actual loss events. Loss event probability is the
likelihood that a loss will take place. It is indicated by the mathematical statement below concerning the possibility of an
event occurring: P= f over n
where: (P) is the probability that a given event will occur, (f) is the number of outcomes or results favorable to the
occurrence of that event, (n)is the total number of equally possible outcomes or results.

To make effective assessment of the probability of security of loss events, as many as possible of those circumstances that could
produce loss must be known and recognized. There is a need to emphasize the earlier statement that common sense alone is not
an adequate basis or yardstick for identifying risks. Specific knowledge is required. Remember, the more complex the enterprise or
loss environment, the greater the need for such expertise.

Factors of Loss Event Probability

There are certain conditions that could worsen risk of loss and categorized as follows:

1. Physical environment - Climate, geography, location, composition

2. Social environment - Age groups, ethnicity, neighborhoods, income levels, social history, crime
3. Political environment - Government unit, general tone, attitudes, political areas

Probability Ratings

Upon gathering of available data and factual circumstances in each risk, it is only right to assign a probability rating. Ratings will not
consider any precaution or countermeasures that may be taken later to reduce or eliminate the risk. Usually, five categories of
probability are established to indicate the probability rating. With the amount of information available concerning each risk, plus the
skill on the protection specialist in assessing the probability impact of the factual circumstances surrounding it. The ratings may be
given as follows:

1. Virtual Certain - Given no changes, the event will occur

2. Very Probable - The likelihood of occurrence
3. Average Probability - The event is more likely to occur than not to occur.
4. Less Probable - The event is less likely to occur than not to Occur.
5. Very Improbable - Insufficient data are available for an evaluation.

III. Loss Event Criticality - The effect on the assets or on the enterprise responsible for the assets if the loss occurs

Loss event criticality is the impact of a loss as measured in financial terms. How important it is in terms of the survival or existence
of the organization. High probable risks may not require countermeasures if the overall damage is little. However, moderately
probable risks will require attention if the size of the loss they produce is great. Assessing the criticality is the third step in
vulnerability assessment. It is first considered on occurrence basis. For events with high recurrence probability, cumulative
considerations must also be done.

Criticality includes the following cost considerations: K = (Cp+Ct+Cr+Cd) - (I-a)

Where:

 K = Criticality cost of the loss

 Cp = Cost of permanent replacement
 Ct = Cost of temporary replacement
 Cr = Related cost
 Cd = Discounted cash
 I = Insurance
 a = Allocable insurance premium

Criticality Known or Unknown

Percentage of Impact

 100% = Fatal
 75% = Very Serious
 50% = Average
 25 % = Less Serious
 0% = Unimportant

Security Hazards

Every organization has the responsibility of protecting lives and property by means of disaster preparedness and emergency
management. It helps minimize loss and ensure the continuity of production that is vital to the recovery of an area after the
occurrence of a disaster. A disaster may be in the form of destructive storm, fire, explosion, sabotage, civil disturbances, nuclear
incident or even an earthquake. In this kind of scenario, managers should do planning coordination with the local authorities to make
certain that corporate and community resources would be used to their fullest advantage in an emergency.

Types of Hazards

1. Natural Hazards

These are risks arising from natural phenomena. Nobody can do anything to prevent this kind of occurrences, but there are
measures that can placed or installed to minimize the damage or destruction of property, injury, or loss of life. Since it is part of
physical security, security plans must be coordinated with the installation's emergency and disaster plans. In the design of security
plan, emergency situations and disasters must be fully considered so that in the event of their occurrences, immediate course of
action can be made thus preventing or minimizing the loss or property and lives.

 Flash floods cause by typhoons and monsoon rains

 Earthquakes
 Fires
 Storms
 Volcanic eruptions
 Lightning storms
 Extreme temperature and humidity
 Landslides

2. Man-made Hazards

Human or man-made hazards are one of the major concerns of personnel in charge of the safeguarding and protecting a plant or
installation. It is the result of a state of mind, attitude, and weakness of character traits. One can be due to an act of omission of
commission, either overt or covert, which can disrupt the operation of an organization.

 Carelessness
 Accidents
 Sabotage
 Espionage
 Pilferage
 Theft
 Disloyalty
 Vandalism

Risk is defined as the potential damage or loss of an asset. It is in fact a combination of two factors:

1. The value placed on that asset by its owner and the consequence, impact adverse effect of loss or damage to that asset.
2. The likelihood that a certain weakness will be exploited by a particular threat..

Risk Analysis involves the scrutiny of specific vulnerability, probability and significance of potential threats including natural and
man-made.

Major Risks

Some of the major categories or risks are arranged according to its seriousness:

 Nuclear attack
 Natural catastrophe
 Industrial disaster
 Civil disturbances and malicious destruction
 Other crimes
 Conflict of interest
 Other risks

Risks Management Alternatives and Strategies

1. Risk Avoidance - Complete elimination or eradication of the risk from the business, government, or industrial environment
for which the risk manager has the responsibility.
2. Risk Reduction - Decreasing of the risks by minimizing the probability of the potential loss. This reduction of criminal
opportunity is often accomplished by situational crime prevention strategies to discourage, deny or deter criminal incidents.
3. Risk Spreading - The distribution of the risks through compartmentalization or decentralization to limit the impact
(criticality) of the potential loss.
4. Risk Transfer - The movement of the financial impact of the potential loss over to an insurance company.
5. Risk Self-Assumption - This is a planned assumption and acceptance of the potential risk by making a deliberate
managerial decision of: doing nothing about the threat; or setting aside resources for use in case of a specific loss incident
 6. Combination of the Above - Making use of two or more of the above given strategies to manage potential risk and
threats.

LESSON : CHAPTER 9 : SECURITY INVESTIGATION

Learning Objectives

At the end of this chapter, the student will be able to:

1. Define security investigation and enumerate its elements;

2. Illustrate the three I’s of investigation;
3. Enumerate the qualities of effective investigation and the characteristics of a successful investigator;
4. Illustrate the systematic approach to investigation;
5. Enumerate the purpose, qualities and parts of an investigation report;
6. Enumerate the science of psychology behind interrogation;
7. Enumerate the steps in interrogating suspected individuals; and
8. Explain the different interrogation schemes.

Security investigation is one of the major functions of a security organization. Most security officers and supervisors are called upon
to conduct preliminary investigation on theft, injury or any other kind of untoward incident. These investigations are usually non-
criminal in nature but still important since they may result in civil litigation. The term Investigation means a planned and organized
determination of facts concerning specific events, occurrences or conditions for a particular purpose. Security, on the other hand,
means the protection of property from loss through theft, fraud, fires, threats or hazards. While security investigation is a planned
and organized determination of facts concerning specific loss or damage of assets due to threats, hazards or unsecured conditions.

Elements of Investigation

1. Investigator
2. Purpose
3. Subject of Investigator

The Three I’s of Investigation

1. Information - The knowledge which the investigator gathers from different sources.
a. Acquired from regular sources. Conscientious and public spirited citizens, company files, school files, or records
file of other agencies.
b. Acquired from cultivated sources. Paid informants, bartenders, cab drivers, acquaintances, etc.
2. Interrogation - The skillful questioning of witnesses as well as suspects. This is different from an interview. An interview
means the simple questioning of a person who has no personal reason to withhold information. Interrogation, in contrast
means the questioning of a suspect or other person who is reluctant to divulge information concerning the offense under
investigation.
3. Instrumentation - It is the application of instruments and methods of physical sciences to the detection of crimes. In other
words, the summation of the application of all sciences in crime detection known as criminalistics.

Purpose of Investigation

1. To identify the offender

2. To locate the offender
3. To provide evidence

Qualities of Effective Investigation

The following are attributes that characterize an effective and reliable investigation, as outlined in the Asset Protection and Security
Management Handbook (POA Publishing LLC, 2003).

1. Objectivity

The investigator must accept any fact, regardless of its significance to preconceived ideas. Objectivity is achieved by recognizing
the investigator’s personal prejudices and compensating for, or neutralizing. His effect on the investigation. An investigator who
cannot sort out and identify personal prejudices about people, places and outlooks is likely to miss the mark.

2. Thoroughness

A thorough investigator checks all leads and checks key leads more than once to assure consistency in results. When the statement
of an interviewee is critical, the facts should be reviewed several times if at all possible without compromising the investigation.
Corroborating important aspects through different sources is a proven means of achieving thoroughness.

3. Relevance

Relevance means that the information developed pertains to the subject of the investigation. Another aspect of relevance is cause
and effect. Is a developed fact the result of some other fact under investigation, or is it the cause of that other fact? If a relationship
can provide a direction for the investigative effort, or working hypothesis, establishing the relationship may materially assist in
resolving the entire investigative problem.

4. Accuracy

The mental processes that collect and sort data from the physical senses often produce errors. Sound investigative techniques
dictate frequent tests for verification. If data is subject to physical measurement, it must be measured. If an informant is the only
source of key data, the informant should be tested at least for consistency in telling the version. All information must be tested for
inherent contradictions.

5. Timeliness
Timeliness is an extension of thoroughness. It requires that the investigation be carried to the latest possible point at which
information relevant to the investigation might be found.

Characteristics of a Successful Investigator

1. Observant
2. Resourceful
3. Patient
4. People-oriented
5. Understanding of human behavior
6. Understanding of legal implication of the work
7. Possesses good communication skill
8. Self-starting
9. Healthfully skeptical
10. Intuitive
11. Energetic
12. A good actor
13. Possesses good judgment
14. Logical
15. Intelligent
16. Creative
17. Receptive
18. Possesses sense of well-being
19. Dedicated
20. Possesses good character
21. Professional

Systematic Approach to an Investigation

1. Define the investigative problem

Identify the requirements:
a. The reason for the investigation
b. The particular phases or elements of investigation assigned to the investigator
c. Discern whether the investigation is to be handled overtly or discreetly
d. The priority and suspense date assigned to the investigation
e. The origin of the information
2. Collection of relevant data
a. Prepare a written investigative plan that includes:
 Information needed
 Methods used in gathering information
 Location of sources to furnish this information
b. Methods and sources to be used by the investigator:
 Personal Observation
o Undercover/use of agent
o Surveillance
o Raids and seizures
o Direct visit to the scene
 Study of documents or records
o Operational files
o Identity of documents
o Newspapers, books, periodicals, etc.
o Correspondence, letter mails, telegrams, etc.
 Use of interrogation and interview
 Use of recruited informants
 Liaison with agencies that possess the information
3. Analysis and verification of the information gathered
a. Analysis involves a study of the information in terms of the questions set out to answer.
 Data collected should be complete
 Supplied information must be based on facts
b. Verification method include the following:
 Personal observation of the agent
 Secure reliable statements from individuals making personal observation through experience
 Documents or physical evidence
4. Drawing the conclusion is the function and responsibility of the person requesting the investigation.

Guidelines in Investigation

1. Preliminary Investigation
 P - proceed to the scene promptly and safely
 R - render assistance to the victim, if any
 E - effect the arrest of the offender
 L - locate and identify the witnesses
 I - interview the complainant and witnesses
 M - maintain the crime scene and protect the evidence
 I - Interrogate the suspect/offender
 N - note all conditions, events and remarks
 A - arrange for the collection of evidence
 R - report the incident fully and accurately
 Y - yield the responsibility
 2. Investigation Proper
a) Search of the crime scene
b) Taking of photographs of the crime scene
c) Crime scene sketch
d) Care of evidence
3. Methods of Investigation
a) Information
b) Interrogation
c) Instrumentation

Investigation Report

Report writing is a crucial part of the investigation. The most diligent and professionally conducted investigation loses its value if the
effort is not properly reported. An investigative report is a written document in which the investigator records the activity in the
investigation and the evidence gathered. A competent investigator writes a report so that reader can readily understand what the
investigator did, why it was done and the results of the action.

Purpose of the Investigation Report

The following are the rationale of an investigation report.

1. To provide a permanent official record of the investigation

2. To provide other investigators with information necessary to further advance the investigation
3. To uphold the statements as facts on which designated authorities may base a criminal corrective or disciplinary action

Qualities of an Investigation Report

1. The report serves as an objective statement of the investigation findings.

2. The report is an official record of the information relevant to the investigation which the investigator submits to his
superior.
3. The report is clear, brief, accurate, impartial but complete.
4. The report is sans of the investigator’s opinion or other irrelevant facts foreign to the case.
5. The report is accurate and is a true representation of the facts of the case.
6. The report is clear and is logically and chronologically developed.

Parts of the Report

The investigation report contains the following components:

1. Administrative data
a. Date
b. File number
c. Subject
d. Complaint
e. Reporting investigator
f. Office of origin
g. Status
h. Distribution
2. Synopsis - a brief description of the actions of the perpetrator as established in the body of the report.
3. Details of the report - objective of the investigation
4. Conclusion and Recommendation - include the investigator’s opinion, conclusion and recommendations
5. Enclosures - photographs, sketches, sworn statement, etc.

Sample Report Format

CONFIDENTIAL

(Letterhead)

Code:

Date:

Subject:

To: (The Chief or Commander who assigned the case)

I. AUTHORITY

This section contains a brief statement of when, where, and by whom the investigation was made and should cite the authority for
making it.

II. MATTERS INVESTIGATED

This section represents the mission of the investigator. In essence, it answers the question: “What is the investigation about?”

III. FACTS OF THE CASE

This section presents the real truth as regards the matter being investigated. The report must contain these two main
characteristics: completeness and clarity. It should be coherent in the presentation of all pertinent facts. It should be free from
argument or bias and should be fully supported by evidence.
 IV. DISCUSSION

Discussion should set forth the presumption and inferences from all the circumstances in the case when appropriate. The goal is to
give the directing authority the clearest possible picture. It should contain related factual matter of argument as may be necessary to
establish the conclusions and recommendations.

V. CONCLUSION

It represents concise summary of the results of the investigation. This is usually stated in the order naturally suggested by the
statement of the allegations or facts.

VI. RECOMMENDATION

It contains the practical suggestions as appropriate action to be taken to make suitable position of all phases of the case.

Investigating Officer

Incident Type Investigation / Complaint Type Investigation

A. General Facts
a. The incident type investigation is also known as a complaint type investigation.
b. An investigation might begin with a personal observation. Usually, a report is made by someone, stating the
facts and conditions, actual or alleged, from which an investigation shall be conducted. There is a basis of
complaint or report about an event or a condition.
B. Investigative Process
a. The investigative process begins with the acquisition of the initial information in which the investigation is based
on. It ends when the last piece of physical, testimonial or directly observed date has been collected. The
investigative process then moves into analysis and report writing process.
b. A systematic approach to investigation is applied.
C. The Investigative Analysis

Preliminary analysis of the investigative steps to be taken is made by someone who assigns and reviews investigation as well as by
the investigator. This results to a note or list of the investigative steps to be taken and in some instances the sequences. The
investigator determines in advance the precise location and availability of persons or premises to be interviewed or viewed. Other
preliminary observations include:

1. Is the prime or another informant a member of the bargaining unit? If so, what is the policy should the informant request
representation during the investigative interview?
2. Have all the persons, events and locations mentioned in the complaint been checked through security investigative
indexes and the results noted?
3. Should any operating or executive management personnel be notified of the initiation of this investigation before further
steps are taken?
4. Does it appear that recording or photographic equipment will be needed? If so, is it in serviceable condition?
5. Is there a need for more than one security investigator for the case?

Sequence of Investigative Leads

Subject to the circumstances of the situation, the following rules are established for priority Lead.

1. Prioritize those persons not likely to remain available for interview. These might include employees scheduled for a trip or
reassignment, informants only temporarily in the area, etc.
2. Give second priority for interview those persons with the most extensive information or the most fundamental. This usually
includes the prime informant or person providing the information which predicated the inquiry.
3. Interview next those individuals with relevant but less extensive information, such as those witnesses or are familiar with a
part of the subject matter.
4. The last to interview are those likely to be hostile. This usually includes the subject of the investigation of criminal
misconduct. The reasons for deferring this type of interview are:
a. It may create administrative obstacle as when hostile informant advises others not to cooperate, or makes a
complaint to his supervisor or other member of the management which may require collateral resolution and
cause delay;
b. It may alert people in a position to compound or obstruct the investigation and ultimately frustrate its purpose.
5. Observe first those events or locations which may not be available at a later date for observation or which may change
unless observed promptly.
6. Observe later those events or locations with irrelevant characteristics but the condition of which at a given time is not.

Interrogation and Interview

Interview of Non-Hostile Informants

It must be noted that an interview conducted at the security office affords better control of the environment. However, it is likely to
make the interviewee, even a friendly one, more apprehensive. Considerations of the confidentiality may require a private interview.
If they do not, and if the interview could be accomplished at or near the informant’s regular work station, consider doing it that way to
keep the informant at ease. Show consideration for the comfort and convenience of the interviewee, and if possible, preserve
lengthy interviews on audio tape recordings, making their total reconstruction later. The use of covert sound recording should always
be evaluated carefully.

The Interrogator and the Science of Psychology

1. Human beings tend to be talkative, especially after a harrowing experience.

2. Human beings tend to be defensive when confronted with superior authority.
3. People tend to rationalize acts they feel guilty about.
 4. People in tight situations tend to be unable to apply or remember lessons they have been taught regarding security
5. Human beings normally do not wish to antagonize those who have power over them and are, therefore tempted to be
cooperative with those in control.
6. Human beings tend to attach less importance to what they think is their exclusive knowledge when someone else
demonstrates that he too possesses a great portion of that knowledge.
7. People tend to like being flattered and exonerated from guilt.
8. People are inclined to respond to kindness and understanding, especially in dire situations.
9. They resent having something they respect belittled, especially by someone they dislike.

Interrogation of Suspected Individuals

1. Physical Aspect
a. The ideal interrogation room should be exclusive
b. The room should be well lighted
c. The room should be furnished with chairs, rugs, and shades made of plain materials
d. The walls and ceiling should be painted with neutral shade
e. There should be nothing in the room that would distract the attention in working condition
f. No telephone should be in sight
g. The room should be provided with sound recording devices in good working condition.
h. No interruption should be made during interrogation.
2. Mental Aspect
a. The interrogator must be familiar with all aspects of investigation
b. He must never be on the defensive for lack of knowledge of the case
c. He must take advantage of slips made by the suspect
d. The interrogator must check all appropriate files or records
e. He should be able to determine what he knows, what he must find out and what the suspect can tell
f. He must be familiar with the techniques he intends to use to obtain the desired information.

Types of Suspects in terms of Attitude and Personality

1. Talkative type
2. Pathological liar
3. Disinterested type
4. Imprudent type
5. Explainer
6. Shy and uncommunicative
7. Know-nothing type
8. Fearful type

Different Interrogation Schemes

1. Direct approach - The suspect is allowed to speak/talk freely.

2. Emotional approach - Discover type of emotion to use to obtain an admission.
3. Trickery - One suspect is played against the other.
4. The location trick - The mentioning of false episode.
5. Hate and Revenge - Giving clever hints referring to a double cross and confession of an accomplice.
6. National Pride - Making an appeal on nationalism or love of country.
7. Kindness and Sympathy - Let the suspect understand that you are fair and will see that justice is accorded.
8. Mutt and Jeff - The use of two interrogators, one is hostile and the other is sympathetic.

Interrogation Proper

1. Explain his rights under the Constitution.

2. Begin with background questions.
3. Study the subject’s reactions to determine the interrogation technique needed, the emotions to be played upon.
4. Pick up new leads.

PART FOUR

LESSON : CHAPTER 10 : MANAGEMENT AND PLANNING

Learning Objectives

At the end of this chapter, the student will be able to:

1. Explain cost effectiveness in security management;

2. Explain security planning and the development of security policies;
3. Explain the financing and budgeting aspects of security management;
4. Enumerate the principles to come up with an effective security organization; Enumerate the roles of an agency operator or
security director,
5. Enumerate the ranks and positions in security agencies;
6. Explain the staffing pattern prescribed for security agencies; and
7. Explain the management principles practiced by security professionals.
8. Management in General and Planning Function

The security executive is no longer a private practitioner who impresses people with his courageous deeds, skill in apprehending
criminals or expertise in handling weapons. Rather, he is a modern manager entrusted with the twin tasks of protecting corporate
assets and ensuring that business interruptions, if at all, are kept to the minimum. In fact, his most challenging role is to predict the
opportunities to manageable proportions. In this role, he is backed by his years and years of technical expertise as well as the
seasoning and sensitivity that come with long years of exposure in the field.
In security as in other fields, the manager’s major concern is getting things done. The manager uses management techniques in
getting things done and is familiar with the following elements of management: planning, financing, organizing, staffing, training and
professional development and communication.

Security Management and Cost Effectiveness

Cost effectiveness means spending the least possible amount consistent with required results and, at the same time, assuring that
each item of expense is fully justified as the best available way to commit the funds. Akin to profit-center orientation with which it is
closely aligned, cost effectiveness in security management definitely enhances the profitability of a business enterprise.

Security Planning

Planning is the key factor in the successful management of a security program. A management expert defines planning as pre-
determining a course of action. Another defines it as deciding in advance what to do, how to do it and who should do it. It is
necessary for a security executive to plan, the alternative is obviously to react to events that have already occurred or try to solve
problems that could have been avoided in the first place. The first requirement in planning is to identify the overall objective and
purpose of the organization. Afterwards, the executive may start his own planning which should be objective and supports the
organization’s goals. One method of security planning is to create an overall blueprint for security program based on the identified
vulnerabilities or the result of vulnerability assessment. Another method is to write several plans such as a comprehensive
emergency plan covering various anticipated contingencies and various operational plans, policies, standards and procedures. Still
another way is the use of Action Plans showing three columns: the first column identifies the planned activities, the second column
identifies the action officer involved, while the third column shows the time frame.

Development of Security Polices

A policy is a broad guide to management decision-making in situations of a repetitive nature. Its purpose is to orient decision-
making towards the organization’s ultimate objectives. Hence, a policy should reflect the objectives and be flexible and sufficiently
broad enough to be applicable to changing conditions. Nevertheless, security policies vary from organization to organization.
Beyond moral standards there seems to be little commonality among organizations among organizations as to suggest standard
policies applicable to all.

Illustrations of Security Policies

1. In a Non-Union Company.

The company recognizes the loyalty of its employees and its obligation as a corporate citizen to the community and thus fosters a
cooperative attitude in the protection of personnel and property.

2. In a Company with Union

The company recognizes its obligation as a corporate citizen to the community and thus, practices an aggressive policy of
prosecution regarding theft within the company.

3. Information Security Policy

The computer center recognizes the proprietary interest of the client entities who utilize the facilities of the center, hence, strictly
controls dissemination of management information on strictly need-to-know basis and only to such persons that have been
specifically cleared to receive such information.

Operating Level Policies

Major policies and procedures covering various areas of security will have to be developed. The need to draw up specific policies
such as “Access Control”, “Key Control”, “How to Handle a Bomb Threat”, etc., may be written as short as possible as a basis for
common interpretation or may include specific procedures in implementation of a particular mandate from management.

Financing

Managing security requires cash to carry out the various responsibilities involved. A security executive should be able to have
enlightened view of what activities he plans for a specific period, the expected operational conditions and the cost involved. A
security executive should have knowledge in forecasting and budgeting to make security management successful. He should be
familiar with the organization’s stand on Return on Investments and spending preferences

Budgeting

A budget is usually a prepared annual plan stated in financial terms. It is ordinarily finalized a few months before the start of the
budget period. It contains the different items for which costs are involved. No security organization can operate nor have its program
implemented without the budget.

The Process of Budgeting

1. Setting up of goals and objectives for a particular period, usually a year.

2. Budget development involving an evaluation of current activities, identification of projected new activities, development of
alternatives and determination of costs.
3. An evaluation and review of the recommendation.
4. Budget establishment or allocation of funds.

The process is set off by appropriate guidelines from senior management. The security executive then prepares his program and
various activities and costs. He develops and recommends alternative courses of action. The senior management then reviews the
recommendations and makes decision on the funds allocation.

Budget Costs and Justification

 1. Salary Expense - Refers to total personnel costs. It is computed by adding up the total monthly compensation of each
employee and multiplying the total by 13 considering the provision for the 13 th month pay. Provision for expected salary
increases should also be made.
2. Sundry Expense - These are non-salary expenses such as supplies, uniforms, travel, transportation, representation,
contract publications and subscriptions, services, professional fees, membership fees.
3. Capital Expenditures - These are one-time expenses for physical improvements or acquisition of equipment such as the
purchase of communication equipment, computers, firearms, vaults, alarm systems and construction of firing range.

To justify the budget, the following questions must be resolved:

 What must be done?

 How are we going to do it? When must it be done?
 How much will it cost?

Organizing

An organization is the orderly arrangement of manpower an material resources to effectively carry out their intended purposes.
Molds the activities of many people into a smooth working team an could mean the difference between the success and failure of a
security department or company. A security organization must be planned in such a way that it meets the needs of the enterprise it
is responsible to secure. It must be designed with the aim of helping a company fulfill its mission. Each sub-unit must be able to
carry out its assigned tasks at an acceptable level of efficiency. A security organization must also be flexible in such a way that the
structure must be able to adapt to necessary changes without interfering with the major objectives of the organization. In other
words, the structure should enhance instead of impede the work of the department or agency.

Organizational Relationship The following are the basic forms of organizational relationship:

1. Line Authority - Line authority is based in the relationship between a superior and a subordinate level. It is formal
managerial authority with the right and power to issue commands, to exact accountability, and to discipline for violations.
2. Staff Authority - It is based on relationship between managers of auxiliary and facilitating groups and the line
organization. It is limited by absence of the right to command beyond the staff group itself.
3. Functional Authority - Between the above mentioned authorities is the functional authority which is the formal power to
command, limited to a specified area of expertise which may be organization-wide and directed across substructures as
sections, departments and divisions.

Organizational Principle

To come out with an effective security organization, the executive should be aware of the following principles:

1. The work should be divided according to some logical plan. The five primary ways are: purpose, process or method,
clientele, time and geography.
2. Lines of authority and responsibility should be made as clear as possible. These are reflected in the pyramid-like
structure with blocks and lines known as “organization chart and with the positions of greater authority and responsibility
located in the upper levels.
3. There should be a “unity of command” in the organization. This means that an employee should be under the direct
control of one and only one supervisor at any given time.
4. One supervisor can effectively control only a number of people, and that limit should not exceed. This is known
as the principle of span of control. At the highest level the number is normally three and at the lowest level the maximum
is 12.
5. Responsibility cannot be given without given without delegating commensurate authority, and there must be
accountability.
6. All efforts of sub-units and personnel must be coordinated into the harmonious achievement of the
organization’s objectives. Reporting Levels.

Oftentimes, the security director/manger may report directly to the president or at least one of the senior executives. He may also
report to a middle management executive which tends to limit his stature, authority and scope of his responsibility.

Typical Security Organization

There are factors that could dictate the type of security organization that an enterprise may adopt. Among these are the corporate
philosophy and purpose, the customers that the security organization is serving, the particular nature of business activities, the
identified vulnerabilities and the location of a company’s facilities.

The Agency Operator/Security Director

The security executive usually wears two hats. First, the perception that he is an expert in security; and second is the awareness
that he is the highest management guy in the hierarchy. Thus, he should be backed by a track record of success in handling people,
problem solving and professional competence.

1. Leader - His most basic role is to provide leadership, set the right climate, establish the directions to take, motivate his
people and try to bring out the best in them.
2. Company Executive - He is accepted by his senior management and peers as part of the management team. He is
discerned as a modern-day manager.
3. Executive with High Visibility - He is visibly recognized and participates in various company activities and is a much
sought after speaker in his area of expertise.
4. Innovator - He is expected to be always on the lookout for better and less expensive ways to do the job. He is not fearful
of trying new ways and take risks.
5. Counselor/Adviser - He is able to provide advice, suggests alternatives, and helps solve problems.
6. Trainer - He establishes professional development and keeps his people attuned with times and various requirements.
7. Contemporary Professional - He keeps abreast with current developments in the profession by participating in
meetings, conferences, and seminars, and subscribes to security magazines and periodicals.
 8. Goal-Setter - He establishes objectives and defines the goals to be achieved. It starts with the setting up of goals and
objectives for a particular period, usually a year. Afterwards, budget development follows. This involves an evaluation of
current activities, identification of projected new activities, and development of alternatives and determination of costs.
After these, an evaluation and review.

Staffing and Administration, Ranks and Positions

The security agency operator/owner must observe the required major ranks and positions in the organization of the agency, as
prescribed by the implementing rules and regulation of RA 5487, as amended.

a. Security Management Staff

1. Security Director (SD) - Agency Manager/Chief Security Officer

2. Security Executive Director (SED) - Assistant Agency Manager/Assistant Chief Security Officer.
3. Security Staff Director (SSD) - Staff Director for Operations and Staff Director for Administration.
4. Security Staff Director for Training - Staff in-charge for Training

b. Line Leader Staff

1. Security Supervisor 3 - Detachment Commander

2. Security Supervisor 2 - Chief Inspector
3. Security Supervisor 1 - Inspector

c. Security Guard

1. Security Guard 1 - Watchman/guard

2. Security Guard 2 - Shift-In-Charge
3. Security Guard 3 - Post-in-Charge

d. Security Consultant (Optional)

Staffing Pattern

All security agency owners/managers shall follow the required staffing pattern as prescribed under Rule IX, Sec. 2, NIRR of RA
5487, as amended.

1. Agency Manager - is automatically the Security Director who shall be responsible for the entire operation and
administration/management of the security agency. He shall be the authorized signatory to all Duty Detail Orders, and all
other documents and communications pertinent to the operation and management of a security agency. He may delegate
certain functions to a subordinate, provided the subordinate is qualified to discharge the given function in accordance with
law.
2. Staff Officer as Security Training Officer - responsible for the training of the Agency’s security personnel in accordance
with the requirements of RA 5487 and the IRR. The Training Officer shall be licensed as a security officer and likewise
accredited as such by the Training and Education Branch of SOSIA
3. Staff Director for Operations - is the staff assistant of the security manager for the efficient operation of the agency. This
position includes the responsibility to canvass clientele and the implementation of contract and agreement. He is also
responsible for the conduct of investigation and the conduct of training.
4. Staff Director for Administration - is the staff assistant of the agency manager for the effective and efficient
administration and management of the agency. He is responsible for the professionalization of the personal,
procurement/recruitment, confirming of awards, mobility and issuance of FA’s.
5. Detachment Commander - is the field or area commander of the agency. The Detachment shall consist of several posts.
6. Chief Inspector - responsible for inspecting the entire area covered by the detachment.
7. Security Inspector - responsible for the area assigned by the Chief Inspector of the Detachment Commander. Detailed
8. Post-in-charge - responsible for the entire security office within a certain establishment.
9. Shift-in-charge - responsible for the security officers who are scheduled in a certain shift for a particular period.
10. Security Guard - is the one actually posted as watchman and or guard.

Position Standards

One of the major tasks of the corporate security executive which cannot be delegated is the setting up of standards for key positions
in his organization. Also, more often than not, he himself would establish the standards for his own position especially if it is a newly
created one. Among the areas defined by the Job Description are: the job functions, reporting relationship, skills required,
managerial capabilities, education and training, years of experience and personal circumstance.

Hiring

This process involves sourcing of candidates through advertisements or referrals, interviewing, short listing, background
investigation, selection of the best candidates and irrationally preparing the job offer.

Training and Professional Development

Although there have been state-of the-art developments in the field of security as far as technologies and various literature are
concerned, it is quite obvious that these will not immediately take place in the country. The assurance of professional development
that a junior security officer could hope for is to do research of his own and to associate himself with and be an understudy of
somebody with recognized professional competence.

Discipline

Below are some of the basic rules of discipline.

 1. Put rules in writing and ensure that employees understood them. Employees are entitled to know what is expected of
them.
2. Do the disciplining in the privacy of the office. Do not chastise one in the presence of others.
3. Be objective and consistent. Discipline condemns the act and not the person.
4. Educate and do not humiliate. The idea is to help, not to hurt.
5. Keep a file of all employees’ infractions. This can come handy later on.
6. Exercise discipline promptly. Delay raises questions.

Appraisal of Results

A performance appraisal should be done to measure and evaluate the performance of subordinates on a regular basis. It can be
done annually or semi-annually. This is the usual basis for administrative actions such as promotions or salary increase or on the
extreme, the basis for separation from the organization.

Promotions

Promoting deserving employees is one of the important functions of a security executive. If there’s a vacancy, he has the option to
fill it up by promoting a staff member based on his track record and his expected performance in the higher position.

Morale and Welfare

In security, all things being equal, employee welfare should be given the utmost importance along with morale. The security
executive should be able to motivate his subordinates, make them function as a team and instill pride in and identification with their
organization. The security executive should realize that the manpower is their “product” thus, the people’s well-being, welfare and
morale should be their principal considerations. These include the achiever’s recognition, professional development, fairness and
consistency.

Communication

Continuing communication within the security organization and with other subdivisions of the company is major responsibility of the
security executive. He should be able to communicate upward, downward and laterally; as well as receive communications from
above, below and laterally.

Some Management Principles

Security practitioners should be conversant with the following “Ten Management Rules.

1. Definite and clean-cut responsibilities should be assigned to each executive

2. Responsibility should always be coupled with corresponding authority.
3. No change should be made in the scope or responsibilities of a position without a definite understanding to that effect on
the part of all persons concerned.
4. No executive, or employees, occupying a single position in the organization should be subject to definite orders from more
than one source.
5. Orders should never be given to subordinates over the head of a responsible executive. The management should instead
supplant the officer-in-question.
6. Criticisms of subordinates should, whenever possible, be made privately, and in no case should be criticized in the
presence of executives or employees of equal or lower rank.
7. No dispute or difference between executives or employees as to authority or responsibilities should be considered too
trivial for prompt and careful adjudication.
8. Promotions, wage adjustments and disciplinary actions should always be approved by the executive immediately superior
to the one directly responsible.
9. No executive or employee should ever be required or expected to be at the same time an assistant to, and critic of,
another.
10. Any executive whose work is subject to regular inspection should whenever practicable, be given the assistance and
facilities necessary to enable him to maintain an independent check of the quality of his work.