In 2022, companies worldwide faced losses exceeding $1 trillion1 due to internal and external physical security incidents. While cybersecurity often dominates corporate strategies and media narratives, insider threats and physical security vulnerabilities can be equally damaging. With global economic instability growing, experts predict a sharp increase in physical security incidents, including insider risks, in the coming years.
Insider Threats: A Hidden Danger Within
Insider threats are a pressing issue for organizations of all sizes. According to the 2022 World Security Report, 90% of Chief Security Officers reported encountering insider risks within their organizations. These threats included misuse of company resources, leaking sensitive information, and deliberate sabotage.
Unlike external attacks, insider incidents often lead to higher costs and longer recovery times due to the perpetrators’ legitimate access and familiarity with organizational systems. The extended time it typically takes to detect such actions further amplifies the damage caused.
Real-World Examples: Insider Risks in Action
The following incidents highlight the devastating impact of insider threats:
- Twitter (2022): A trusted employee exploited their access to share sensitive user data with the Saudi government, jeopardizing individual safety and damaging the company’s reputation.
- Target (2013): A third-party contractor’s stolen credentials enabled attackers to access company systems, resulting in the theft of 40 million credit card numbers and costing the company $162 million in losses.
- Tesla (2018): An employee tampered with manufacturing code and leaked sensitive trade secrets, disrupting operations and causing significant financial harm.
- The British Museum (2023): An employee stole priceless artifacts over a prolonged period, exploiting their position of trust. This theft caused financial losses and reputational damage, raising serious questions about the institution’s internal controls.
- Helse Sør-Øst (2018): Norway’s largest healthcare authority suffered a data breach when an advanced actor gained unauthorised access to its systems. Sensitive patient records and national security-related data were potentially exposed, highlighting critical gaps in internal security protocols.
These examples demonstrate how insider risks—whether caused by malicious intent or negligence—can result in substantial financial and operational damage.
The First Line of Defense
Personnel Security
Effective personnel security is essential in mitigating insider threats. It involves measures such as thorough background checks, continuous employee evaluations, and fostering a culture of security awareness.
Investing in personnel security not only reduces the likelihood of insider incidents but also ensures swift and effective responses to potential threats. These measures protect sensitive information, enhance accountability, and build organizational trust.
Physical Security
While digital threats often receive the most attention, physical security incidents—such as theft, sabotage, and unauthorized access—are frequently overlooked until significant damage occurs. These risks can result in direct financial losses, operational disruptions, and long-term reputational harm.
Failing to implement robust physical security measures—such as surveillance systems, strict access controls, and well-trained personnel—leaves organizations vulnerable to avoidable losses. Aligning physical and personnel security strategies creates a safer, more resilient business environment.
Solutions That Work
Addressing insider threats requires a comprehensive approach that combines cybersecurity, personnel security, and physical security measures.
At Stema Risk Management, we specialize in crafting solutions tailored to your organization’s specific needs. Whether it’s threat assessments, security strategy development, or implementing security systems, we provide the expertise needed to safeguard your business.
Effective solutions include:
- Proactive Monitoring: Implement systems to screen employees and detect unusual behavior.
- Robust Access Controls: Restrict access to sensitive areas and information based on roles and responsibilities.
- Regular Training: Foster a culture of accountability by educating employees about their role in preventing security breaches.
- Inclusion and Cooperation: Build a well-run organization where employees feel valued and respected to mitigate insider threats.
Are you prepared to mitigate insider threats and protect your assets?
Contact us today to explore how we can help.
