1 Private Sector Issues Chapter Two The Business of the Private Security Industry.

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Private Sector IssuesPrivate Sector Issues

Chapter TwoChapter Two

The Business of the The Business of the

Private Security IndustryPrivate Security Industry

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The Business of the The Business of the Private Security IndustryPrivate Security Industry

GoalsGoalsHow does private security differ from How does private security differ from

public policing?public policing?What is the size and scope of the private What is the size and scope of the private

security industry?security industry?What are the problems facing private What are the problems facing private

security, licensing, regulating, hiring and security, licensing, regulating, hiring and training, what are the current standards training, what are the current standards and what reforms are in the motion to and what reforms are in the motion to resolve these problems? resolve these problems?

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What is the Private Security Industry?What is the Private Security Industry?Citizens come into contact with private Citizens come into contact with private

security all the timesecurity all the timeSecurity checks at customsSecurity checks at customsPublic transportationPublic transportationFactory, office settings or private shopFactory, office settings or private shopEven the public police employ private Even the public police employ private

security firms to handle non-sensitive security firms to handle non-sensitive dutiesduties

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What is the Private Security Industry?What is the Private Security Industry?There are many definitions of Private There are many definitions of Private

Security but the best is “that both private Security but the best is “that both private and public policing are concerned with and public policing are concerned with the prevention of crime and the prevention of crime and apprehending of criminals, but public apprehending of criminals, but public police are paid by public (taxes) funds police are paid by public (taxes) funds and whereas private security personnel and whereas private security personnel are generally paid by the private sector, are generally paid by the private sector, private corporations or private persons” private corporations or private persons”

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What is the Private Security Industry?What is the Private Security Industry?The Hallcrest Report divides the private The Hallcrest Report divides the private

security industry into three broad security industry into three broad categoriescategories““Physical Security”Physical Security”

Protecting people and propertyProtecting people and propertyGuarding building entrancesGuarding building entrancesPreventing shopliftingPreventing shopliftingPatrolling buildings and other premisesPatrolling buildings and other premisesMaintaining orderMaintaining order

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security industry into three broad security industry into three broad categoriescategories““Information Security”Information Security”

Protecting informationProtecting informationUnauthorized use of computer Unauthorized use of computer

programsprogramsPreventing theft of corporate Preventing theft of corporate

research and development plansresearch and development plans

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security industry into three broad security industry into three broad categoriescategories““Personnel Security”Personnel Security”

Protecting peopleProtecting peopleExecutive or celebrity protectionExecutive or celebrity protection

Background investigations on Background investigations on prospective employeesprospective employees

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What is the Private Security Industry?What is the Private Security Industry?The American Society of Industrial The American Society of Industrial

Security (ASIS) has four categoriesSecurity (ASIS) has four categoriesPhysical SecurityPhysical SecurityInformation SecurityInformation SecurityPersonnel SecurityPersonnel SecurityInformation Systems SecurityInformation Systems Security

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What is the Private Security Industry?What is the Private Security Industry?““Operational Security” focuses on the Operational Security” focuses on the

daily operations and patterns of behavior daily operations and patterns of behavior of a corporation or organizationof a corporation or organization

ASIS has further divided Operational ASIS has further divided Operational SecuritySecurityEducational institution, financial Educational institution, financial

services, gaming & wagering, services, gaming & wagering, healthcare, information systems, healthcare, information systems, lodging, manufacturing, retail, lodging, manufacturing, retail, transportation and utilitiestransportation and utilities

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What is the Private Security Industry?What is the Private Security Industry?Hallcrest II identified nine distinct Hallcrest II identified nine distinct

categoriescategoriesProprietary Security (company has its Proprietary Security (company has its

own security department)own security department)Contract Guard & Patrol Services Contract Guard & Patrol Services

(leased or rented to another company)(leased or rented to another company)Alarm ServicesAlarm ServicesPrivate Investigations Private Investigations

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What is the Private Security Industry?What is the Private Security Industry?Hallcrest II identified nine distinct Hallcrest II identified nine distinct

categoriescategoriesArmored Car ServicesArmored Car ServicesManufactures of Security EquipmentManufactures of Security EquipmentLocksmithsLocksmithsSecurity Consultants & EngineersSecurity Consultants & EngineersOther Other

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What is the Private Security Industry?What is the Private Security Industry?The The EconomistEconomist divides security into four divides security into four

categoriescategoriesGuardingGuardingRisk ManagementRisk ManagementInvestigation and DetectionInvestigation and DetectionControl in the Criminal Justice SystemControl in the Criminal Justice System

Those non essential duties (prisons Those non essential duties (prisons or courts)or courts)

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Size & Scope of the Private Security Size & Scope of the Private Security IndustryIndustryWalker says “the size of the privates security Walker says “the size of the privates security

industry is difficult to determine because it industry is difficult to determine because it involves many small, private agencies, part involves many small, private agencies, part time employees and security personnel that time employees and security personnel that are employed by private business”are employed by private business”

The Economist says “the most visible and The Economist says “the most visible and fastest growing parts of the private security fastest growing parts of the private security businesses are in areas that were once the businesses are in areas that were once the preserve of the public police”preserve of the public police”

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Size & Scope of the Private Security Size & Scope of the Private Security IndustryIndustryPrivate security employees now perform Private security employees now perform

the majority of the Homeland Security jobs the majority of the Homeland Security jobs in our nationin our nation

A significant percentage of the billions of A significant percentage of the billions of dollars in taxpayer monies spent by the dollars in taxpayer monies spent by the federal Department of Homeland Security federal Department of Homeland Security goes to the private security industrygoes to the private security industry

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Size & Scope of the Private Security Size & Scope of the Private Security IndustryIndustryResearcher and Business EstimatesResearcher and Business Estimates

It is estimated that there are three times It is estimated that there are three times more private security employees (1.8 more private security employees (1.8 million) than public policemillion) than public police

Private security responses to 50% of all Private security responses to 50% of all crimes committed on private propertycrimes committed on private property

60,000 private security firms in the U.S.60,000 private security firms in the U.S.The U.S. spends $90 billion/year on The U.S. spends $90 billion/year on

private security private security

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Size & Scope of the Private Security IndustrySize & Scope of the Private Security IndustryResearcher and Business EstimatesResearcher and Business Estimates

Private security firms have now developed Private security firms have now developed “overt” as well as “covert” actions“overt” as well as “covert” actions

Surveillance or countersurveillance Surveillance or countersurveillance regarding trade secretsregarding trade secrets

The Society of Competitive Intelligence The Society of Competitive Intelligence Professionals says 80% of the Fortune 1000 Professionals says 80% of the Fortune 1000 companies have regular in house “snoops” companies have regular in house “snoops” on the payrollon the payroll

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Individuals also cause an increase in the Individuals also cause an increase in the private security industry by:private security industry by:

Installing security systems, twice as many Installing security systems, twice as many in five years, and respond to the alarms in five years, and respond to the alarms

25,000 new gated communities25,000 new gated communities76% of new cell phones were purchased 76% of new cell phones were purchased

for safety reasonsfor safety reasons

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Size & Scope of the Private Security IndustrySize & Scope of the Private Security IndustryResearcher and Business EstimatesResearcher and Business Estimates

Large scale events use private securityLarge scale events use private security30,000 private security officers for the 30,000 private security officers for the

1996 Olympics in Atlanta (3/1 1996 Olympics in Atlanta (3/1 officers/athlete)officers/athlete)

40,000 for the 2002 Olympics in Salt Lake 40,000 for the 2002 Olympics in Salt Lake City at a cost of $213 millionCity at a cost of $213 million

4,385 officers to guard military installations 4,385 officers to guard military installations to replace military personnel off to Iraq to replace military personnel off to Iraq ($194 million)($194 million)

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So, who pays for all this extra security?So, who pays for all this extra security?Many believe that it is paid for by Many believe that it is paid for by

corporations, but in reality the consumer corporations, but in reality the consumer pays for a large portion of it in the cost of pays for a large portion of it in the cost of goods at retail outletsgoods at retail outlets

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Size & Scope of the Private Security IndustrySize & Scope of the Private Security IndustryDept of Labor, Bureau of Labor Statistics StudyDept of Labor, Bureau of Labor Statistics Study

Assignment: Check out a private security Assignment: Check out a private security position that interests youposition that interests you

Look at qualifications, description, benefits, Look at qualifications, description, benefits, pay, working conditions, locations…pay, working conditions, locations…

Find the information in:Find the information in:The Occupational Outlook Handbook in the The Occupational Outlook Handbook in the

Evans Library HD8051.O15 or Evans Library HD8051.O15 or on the web at www.bls.gov/ocoon the web at www.bls.gov/oco

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Size & Scope of the Private Security Size & Scope of the Private Security IndustryIndustryDept of Labor, Bureau of Labor Statistics StudyDept of Labor, Bureau of Labor Statistics Study

Industries employing the largest number of Industries employing the largest number of security officers:security officers:

Elementary and secondary schoolsElementary and secondary schoolsGeneral medical and surgical hospitalsGeneral medical and surgical hospitalsLocal governmentsLocal governmentsTraveler accommodationsTraveler accommodationsInvestigation and security servicesInvestigation and security services

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The U.S. Dept. of Labor reports that The U.S. Dept. of Labor reports that opportunities for security officers and opportunities for security officers and gaming surveillance should remain gaming surveillance should remain favorable in the future (2014) as concerns favorable in the future (2014) as concerns about crime, vandalism and terrorism about crime, vandalism and terrorism continue to increase the need for securitycontinue to increase the need for security

Review Exhibit 2.2, page 39Review Exhibit 2.2, page 39

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Private Detectives and InvestigatorsPrivate Detectives and InvestigatorsHighly competitive, because investigations Highly competitive, because investigations

attract the best and most qualifiedattract the best and most qualifiedEntry level jobs are found at large dept Entry level jobs are found at large dept

stores or chainsstores or chainsDemand will result from an increase in Demand will result from an increase in

crime, litigation and the need to protect crime, litigation and the need to protect information, loss prevention and spyinginformation, loss prevention and spying

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Insurance Claims InvestigatorInsurance Claims InvestigatorWork for property, auto and casualty Work for property, auto and casualty

insurance companiesinsurance companiesDeal with claims when the is a question Deal with claims when the is a question

of liability, fraud or crime of liability, fraud or crime They investigate, negotiate settlements They investigate, negotiate settlements

and authorize payments and authorize payments

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Insurance Claims InvestigatorInsurance Claims InvestigatorMay work investigating complicated fraud May work investigating complicated fraud

rings, doctors, lawyers and insurance rings, doctors, lawyers and insurance personnelpersonnel

May require a college degree, former police May require a college degree, former police officers, military personnel, private officers, military personnel, private investigators, claims adjusters or examinersinvestigators, claims adjusters or examiners

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Size & Scope of the Private Security Size & Scope of the Private Security IndustryIndustryDept of Labor, Bureau of Labor Statistics Dept of Labor, Bureau of Labor Statistics

StudyStudySecurity and fire Alarm InstallersSecurity and fire Alarm Installers

Install, program, maintain and repair Install, program, maintain and repair security and fire alarm wiring and security and fire alarm wiring and equipment and up to local codes equipment and up to local codes

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Size & Scope of the Private Security Size & Scope of the Private Security IndustryIndustryProfessional Association Study: ASIS SurveyProfessional Association Study: ASIS Survey

Salaries, Exhibit 2.4 page 42Salaries, Exhibit 2.4 page 42Security managers $90,000/yearSecurity managers $90,000/yearInternational and higher levels earn moreInternational and higher levels earn moreMilitary veterans earn moreMilitary veterans earn moreCPP certifications earn 18% moreCPP certifications earn 18% moreAlso receive health care, dental and Also receive health care, dental and

disabilitydisability

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Why Do We Have Private Security?Why Do We Have Private Security?The U.S. approach to law enforcement is The U.S. approach to law enforcement is

unique when compared to the rest of the unique when compared to the rest of the worldworld

Many countries have national police forcesMany countries have national police forcesSome believe that the FBI is a national Some believe that the FBI is a national

police force, but its main emphasis is the police force, but its main emphasis is the investigation of crimes not the investigation of crimes not the enforcement of laws enforcement of laws

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Why Do We Have Private Security?Why Do We Have Private Security?Local, state and federal CJ agencies Local, state and federal CJ agencies

employed 2.4 million people (58% at the employed 2.4 million people (58% at the local level, 31% at the state level and 11% local level, 31% at the state level and 11% at the federal level)at the federal level)

The U.S. spends $83.1 billion/year for The U.S. spends $83.1 billion/year for police protection (45% of the CJS budget)police protection (45% of the CJS budget)

The primary responsibility for police The primary responsibility for police protection still falls to local governments protection still falls to local governments

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Why Do We Have Private Security?Why Do We Have Private Security?There are 15,766 full time law enforcement There are 15,766 full time law enforcement

agencies in the U.S.agencies in the U.S.12,565 general purpose local police depts.12,565 general purpose local police depts. 3,061 sheriff’s offices3,061 sheriff’s offices 49 state police departments (Hawaii)49 state police departments (Hawaii) 1,400 special district police departments 1,400 special district police departments

(park police, transit police, constables (park police, transit police, constables offices…)offices…)

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Why Do We Have Private Security?Why Do We Have Private Security?With all this public policing, why do we still With all this public policing, why do we still

have three times the number of private have three times the number of private security officers? security officers?

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Why Do We Have Private Security?Why Do We Have Private Security?Limited Jurisdiction of the PoliceLimited Jurisdiction of the Police

The police power is generally exercised The police power is generally exercised in public places, they can’t enter in public places, they can’t enter private places unless invited in, there private places unless invited in, there is an emergency or a warrantis an emergency or a warrant

Police can’t conduct background Police can’t conduct background checks on potential employees, escort checks on potential employees, escort business owners making deposits business owners making deposits (equality)(equality)

Police can get involved in civil cases Police can get involved in civil cases

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Why Do We Have Private Security?Why Do We Have Private Security?Reactive Role of the PoliceReactive Role of the Police

The role of the public police is The role of the public police is reactivereactive, , concentration on investigations and concentration on investigations and arrests of past crimesarrests of past crimes

Private security is more Private security is more proactiveproactive and and concerned with maintaining a sense of concerned with maintaining a sense of security by preventing crimesecurity by preventing crime

Private security is more concerned with Private security is more concerned with protecting assets and carrying out protecting assets and carrying out private organization’s policies and private organization’s policies and procedures procedures

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Why Do We Have Private Security?Why Do We Have Private Security?Philosophical DifferencesPhilosophical Differences

Formal policing (police, courts, corrections)Formal policing (police, courts, corrections)Private policing (handled “In House”)Private policing (handled “In House”)

The Task Force on Private Security of The Task Force on Private Security of the National Advisory Commission on CJ the National Advisory Commission on CJ Standards and Goals “a large Standards and Goals “a large percentage of criminal violators known percentage of criminal violators known to private security personnel are not to private security personnel are not referred to the criminal justice system”referred to the criminal justice system”

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Why Do We Have Private Security?Why Do We Have Private Security?Workload and Duties of the PoliceWorkload and Duties of the Police

Police are too busy responding to Police are too busy responding to emergencies, arresting offenders….emergencies, arresting offenders….

Half of the businesses surveyed felt Half of the businesses surveyed felt the CJS does a poor job of fighting the CJS does a poor job of fighting crimes against businessescrimes against businesses

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Why Do We Have Private Security?Why Do We Have Private Security?Workload and Duties of the PoliceWorkload and Duties of the Police

Police began because of the poor job Police began because of the poor job private security force didprivate security force did

Now, the trend is the other way, from Now, the trend is the other way, from police to private security police to private security

One reason is that the police can’t One reason is that the police can’t adapt quickly to major social or adapt quickly to major social or technological changestechnological changes

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Licensing, Regulating, Hiring and Licensing, Regulating, Hiring and TrainingTrainingThe private security industry, has The private security industry, has

suffered, primarily at the entry and non-suffered, primarily at the entry and non-managerial levels from a lack of managerial levels from a lack of professional standardsprofessional standards

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Licensing, Regulating, Hiring and TrainingLicensing, Regulating, Hiring and TrainingTraditional Problems with StandardsTraditional Problems with Standards

Traditionally, there has been a lack of Traditionally, there has been a lack of personnel standards for the private personnel standards for the private security industry and their employees in security industry and their employees in terms of licensing, regulating, hiring and terms of licensing, regulating, hiring and trainingtraining

The Rand Study found less than half of the The Rand Study found less than half of the private security officers in the U.S. were private security officers in the U.S. were high school grads, were 52 years old, were high school grads, were 52 years old, were underpaid and poorly paidunderpaid and poorly paid

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Walker says the requirements are minimal Walker says the requirements are minimal and training is non existentand training is non existent

A security officer job is often a last resort A security officer job is often a last resort for people unable to find other jobsfor people unable to find other jobs

Police officers view private security officers Police officers view private security officers to be deficient in professional trainingto be deficient in professional training

Hallcrest II argued there should be better Hallcrest II argued there should be better standards and state regulations for officersstandards and state regulations for officers

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““Thugs in Uniform”Thugs in Uniform”Set fire to Universal Studios $25 millionSet fire to Universal Studios $25 millionMurdered former girlfriend w/shotgunMurdered former girlfriend w/shotgunShot wife to deathShot wife to deathFirebombed apartment complexFirebombed apartment complexMasterminded a bank robberyMasterminded a bank robberyRape and sexually assaulted five womenRape and sexually assaulted five women

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Licensing, Regulating, Hiring and Licensing, Regulating, Hiring and TrainingTrainingTraditional Problems with StandardsTraditional Problems with Standards

Poor security officers performance at Poor security officers performance at airports may have led to 9/11airports may have led to 9/11

In 1987, only 11 states required training In 1987, only 11 states required training for armed security officers, some only for armed security officers, some only required an application and licensing feerequired an application and licensing fee

By 1990, 39 states imposed some By 1990, 39 states imposed some licensing regulations, but 17 still had no licensing regulations, but 17 still had no training training

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Licensing, Regulating, Hiring and Licensing, Regulating, Hiring and TrainingTrainingLicensing, Regulating & Hiring StandardsLicensing, Regulating & Hiring Standards

U.S. Dept of Labor says most security U.S. Dept of Labor says most security officers need to be 18 years old, pass a officers need to be 18 years old, pass a criminal background check, complete a criminal background check, complete a training program and pass drug testtraining program and pass drug test

Armed security officers are required to Armed security officers are required to have a H.S./GED, prior responsible have a H.S./GED, prior responsible experience, more training and licensing, experience, more training and licensing, more in depth background checks, more $more in depth background checks, more $

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Many states are now requiring Many states are now requiring background, criminal record and background, criminal record and fingerprint checks, good health, fingerprint checks, good health, mentally alert, emotionally stable, good mentally alert, emotionally stable, good communication skills…communication skills…

But, Colorado, Idaho, South Dakota, But, Colorado, Idaho, South Dakota, Mississippi and Missouri still have no Mississippi and Missouri still have no state licensing requirementsstate licensing requirements

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Private detectives and investigators Private detectives and investigators don’t require any formal education, don’t require any formal education, but many have four year degrees, but many have four year degrees, have previous experience in other have previous experience in other occupations (insurance, collections, occupations (insurance, collections, law enforcement, military, law enforcement, military, investigations, intelligence)investigations, intelligence)

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The majority of states require private The majority of states require private investigators to be licensedinvestigators to be licensed

The requirements vary widely, but The requirements vary widely, but most exclude felonsmost exclude felons

Some have mandatory trainingSome have mandatory trainingStill, Alabama, Alaska, Colorado, Still, Alabama, Alaska, Colorado,

Idaho, Mississippi and South Dakota Idaho, Mississippi and South Dakota have no state licensinghave no state licensing

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California requires private investigators California requires private investigators to be 18 years of age, have a to be 18 years of age, have a combination of education in police combination of education in police science, criminal law or justice and science, criminal law or justice and experience equaling three years of experience equaling three years of investigative experience, pass an investigative experience, pass an evaluation by the DOJ, pass a evaluation by the DOJ, pass a background check, pass a written test…background check, pass a written test…

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Corporate investigators must have a Corporate investigators must have a bachelor’s degree, some have master’s bachelor’s degree, some have master’s degrees, receive formal training from degrees, receive formal training from their employertheir employer

There is also certification from There is also certification from professional organizations (the National professional organizations (the National Association of Legal Investigators)Association of Legal Investigators)

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In 1992, NYS mandated a state licensing In 1992, NYS mandated a state licensing procedure for all security officers procedure for all security officers including 8 hour pre-employment including 8 hour pre-employment training, passing a 1 hour test, fingerprint training, passing a 1 hour test, fingerprint checks, background investigation all checks, background investigation all before applying for a licensebefore applying for a license

Armed officers must complete and Armed officers must complete and additional 47 hoursadditional 47 hours

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NYS con’tNYS con’tOnce employed the officer must pass Once employed the officer must pass

an additional 16 hours of instruction an additional 16 hours of instruction by the employer and an additional 8 by the employer and an additional 8 hours/year hours/year

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Licensing, Regulating, Hiring and Licensing, Regulating, Hiring and TrainingTrainingTraining StandardsTraining Standards

More and more states are requiring on More and more states are requiring on going training for retention of going training for retention of certificationcertification

Officers receive training in protection, Officers receive training in protection, public relations, report writing, crisis public relations, report writing, crisis deterrence, first aid and other deterrence, first aid and other specialized training (armored car specialized training (armored car officers)officers)

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Minimum training hours mean that Minimum training hours mean that employees must undergo at least a employees must undergo at least a certain number of instructor based certain number of instructor based classroom hours of training for skills classroom hours of training for skills needed for the job the employee is needed for the job the employee is being hired forbeing hired for

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Robertson examines minimum training Robertson examines minimum training hourshours

Regulatory enforcement agencies do Regulatory enforcement agencies do not have the manpower to observe and not have the manpower to observe and validate trainingvalidate training

All individuals learn at different ratesAll individuals learn at different ratesComputer training is the future, not a Computer training is the future, not a

fixed number of classroom hours fixed number of classroom hours

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Licensing, Regulating, Hiring and TrainingLicensing, Regulating, Hiring and TrainingRecent Movement for ReformRecent Movement for Reform

Guardsmark’s hiring procedure is so Guardsmark’s hiring procedure is so through that only 2 out of 100 make the cutthrough that only 2 out of 100 make the cut

The International Association of Security The International Association of Security and Investigative Regulations monitors and Investigative Regulations monitors state regulations and licensingstate regulations and licensing

The ASIS has a model “The Private Security The ASIS has a model “The Private Security Officer Selection and Training Guidelines” Officer Selection and Training Guidelines” for the selection of officers (exhibit 2.5, for the selection of officers (exhibit 2.5, page 52) page 52)

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Licensing, Regulating, Hiring and Licensing, Regulating, Hiring and TrainingTrainingRecent Movement for ReformRecent Movement for Reform

The U.K. passed the Private Security Act The U.K. passed the Private Security Act of 2001 which created the Security of 2001 which created the Security Industry AuthorityIndustry Authority

Its function is to license individuals in a Its function is to license individuals in a specific sector and approve security specific sector and approve security companies, to review private security companies, to review private security actions, conduct inspections, set actions, conduct inspections, set standards, training and supervisionstandards, training and supervision

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Homeland SecurityHomeland SecurityA significant portion of the billions of A significant portion of the billions of

dollars spent by the federal Dept of dollars spent by the federal Dept of Homeland Security and local, state and Homeland Security and local, state and federal agencies to ensure homeland federal agencies to ensure homeland security goes to the private security security goes to the private security industryindustry

Remember the police are reactive, private Remember the police are reactive, private security is proactivesecurity is proactive

Private security is better able to specialize Private security is better able to specialize and receive specialized training to meet and receive specialized training to meet special needsspecial needs

1 Private Sector Issues Chapter Two The Business of the Private Security Industry.

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Transcript of 1 Private Sector Issues Chapter Two The Business of the Private Security Industry.