Why isn't the head of safety part of management?

New Republic Insight #11

Drones swarm over Danish airports. Air traffic is affected by GPS interference. Cables are cut in the Baltic Sea. Events that would have been unlikely just a few years ago are now part of our everyday lives.

One would therefore think that society had already adapted—that all organizations had prepared for the deteriorating security situation. And indeed, serious work is underway in many areas within government agencies, the armed forces, and parts of the business community. But in other areas, the shortcomings are remarkable.

Take something as obvious as the composition of management teams. In a recent survey, we found that only nine of Sweden's 50 largest companies have a security or emergency preparedness manager in their management team.

This is strange, not only in view of the acute incidents, but also because politics is undergoing fundamental change.

We have also recently conducted an in-depth study of policy developments within the EU and see a new pattern emerging: the sustainability paradigm, which culminated in 2019–2021, is no longer the sole basis for policy. In its place, three new guiding principles are emerging—security, self-sufficiency, and competitiveness. This is not a temporary trend, but a structural change born of our times.

Companies that fail to adapt risk not only their competitiveness, but also their ability to operate in a world that is rapidly moving towards a new normal.

One obvious measure is to have a security or emergency preparedness manager on the company's management team. After all, it has been three and a half years since Russia launched its full-scale invasion of Ukraine.

Sebastian de Toro

Partner & Head of Investor Services