"Make slow, careful choices about the people you include in your life -- and fast decisive choices about those you exclude from your life."
Gavin de Becker
Appendix 9
Security Firm Standards
This document is designed to guide you through an efficient and complete Due Diligence assessment when comparing or selecting providers of protective security. Rather than relying upon anyone's verbal answers, or upon brochures and references, have the firm demonstrate the truthfulness of each claim -- right then and there. For example, when a prospective service-provider claims to have undertaken a background check on an employee, ask to see the report of the background check. If the answer is, "We'll get it to you later," that might mean it doesn't exist.
Due Diligence Assessments conducted with these guidelines can usually be completed in about 90-minutes, an excellent investment of time when selecting services intended to keep people safe.
FACILITIES, SECURITY, & OPERATIONS
Arrange to visit the prospective company's offices. You might find so-called companies that have good-looking brochures or web sites don't have any viable headquarters facility. If a firm is unwilling or unable to have you visit their offices, your assessment of that firm might end right there. If they do have a facility you can visit, insist that your meeting take place at their offices. Once there, since they're proposing to manage your security, assess how they manage their own. Is there an access control system, security system, and serious security procedures? If not, your assessment of the firm might end right there. How can anyone justify advising you on security when their own security is sub-standard?
Circle your scoring of your first impression of the security at their facility:
0 1 2 3 4 5 6 7 8 9 10
Ask to see how client information and files are stored, and determine if all confidential files are kept behind always-locked access-controlled doors, or if they are available to any employee who might be there. If client files and records are not kept in an impressively secure way, your assessment of the firm might end right there.
Score your impression of how they handle their confidential files:
0 1 2 3 4 5 6 7 8 9 10
Observe if the entire environment is protected by video surveillance cameras. If so, ask if the video images are recorded. Then, ask to see the actual recording equipment. If they cannot show you the recording equipment, your assessment of the firm might end right there. If they do have recording capability, ask if it is backed up by recording equipment that is kept off-site (so that a fire or sabotage does not destroy the record of an intrusion). Is there constant video-recording of every person entering and leaving the facility? Is there constant video-recording of areas containing confidential files?
Score the quality of their facility security-video system:
0 1 2 3 4 5 6 7 8 9 10
Are the doors into the facility entry-resistant, or just regular doors? Is the access method dual-factor? This means, does each person entering the facility or its internally secured areas have to enter a unique access code and also use a secondary access method (access card, biometrics)?
Circle your scoring of their doors and access-control system:
0 1 2 3 4 5 6 7 8 9 10
Ask how they protect their computer systems and electronically stored information. Do they encrypt the hard disk on every computer and laptop so as to protect client-related data? What steps do they take to prevent hacking into their email? What steps do they take to protect their voicemail? Do they maintain their own on-site voicemail system, or merely subscribe to a phone-company service that can be hacked into?
Circle your scoring of how they handle their electronic information security:
0 1 2 3 4 5 6 7 8 9 10
The security systems and procedures of a qualified firm should be impressive because if selected, this firm would be housing files and information about your security systems and procedures. They'd also predictably be housing other highly confidential material about clients. How they handle their records is an excellent indication of how they'd handle yours.
Ideally, the firm is maintaining an environment that persuades you it is successful, thriving, professional.
Do you come away from the visit feeling the firm is substantial and robust enough to serve you well? Will they be around next year, 3 years, 10 years?
Score your impression of how robust and substantial the firm is:
0 1 2 3 4 5 6 7 8 9 10
MANAGEMENT OF PERSONNEL
If they cannot impress you with their personnel recruitment, screening, training, and supervision methods, your assessment of the firm might end right there because your liability could be adversely affected by assignment of people who were not screened to an acceptable standard. The quality of their service depends upon the quality of their personnel.
While at the firm's facility, ask to see personnel files of 5 current security employees. To ensure you're able to observe random personnel files (assuming they maintain any at all), ask to see files for current employees whose last names begin with particular letters (e.g., M, S, R, L, etc). Ask to see a few minutes of videotape from one of their pre-employment interviews. If they don't videotape these interviews, ask why they don't -- and then ask to see the interviewer's notes or report on the interview. Ask to see their written standards and criteria for prospective employees, and give particular attention to health and readiness standards, if they have any.
When you ask to see personnel files, observe their reaction: Do they willingly get and provide the files right now, or do they stall, resist, or offer excuses?
0 1 2 3 4 5 6 7 8 9 10
Ask to see the background investigation files on those same 5 employees. The files should contain careful and easy-to-identify documentation on each of the following:
Notes or recordings of interviews with references;
Written confirmation of education;
Notes or recordings of interviews with former employers;
Written confirmation of military background, including discharge status;
Results from searches of civil and criminal Court records, local, state, and Federal for all counties in which each employee resided -- be sure to check for this last point;
Credit history report;
Driving history report;
Sex Offender Registry search report;
Derogatory financial filings;
Social Security confirmation;
Report of Internet research (chat rooms, blogs, search engines);
Every file should contain each and every one of these, and if it's clear they are not routinely doing these inquiries, ask why not.
Score the completeness and quality of the investigative reports, if any, in the random personnel files you review:
0 1 2 3 4 5 6 7 8 9 10
Each file should contain documented results of drug-screen urinalysis (they should have pre-employment and on-going random urinalysis results to show you).
Does the file contain reports on drug-screen urinalysis?
0 10
No Yes
Ask to see printed physical fitness requirements established by the firm. Ask to see documentation that they test their security employees to confirm they meet the physical fitness and readiness standards the firm claims.
Does the firm have printed physical fitness and readiness standards, and can they show you documentation of tests confirming fitness and readiness of security employees?
0 10
No Yes
Observe and assess the physical fitness of the managers and executives you meet and see during your meeting. The example of fitness and readiness they set for their employees is an important factor in any due diligence assessment.
Score your impression of the physical fitness of the people you experienced at the firm (from very poor to superior/excellent).
0 1 2 3 4 5 6 7 8 9 10
Ask to see their corporate Employee Handbook, and their Policy and Guideli
nes Manual for security personnel; ask to see their written training manual and written tests that verify successful completion of each course.
Score your impression of the corporate Employee Handbook and their Policy & Guidelines Manual. Are the books impressive, comprehensive? Do the books appear original, or merely cut and paste text from other organizations?
0 1 2 3 4 5 6 7 8 9 10
Is the firm able to show you written tests documenting that each of the sample employees were tested on their familiarity with the Employee Handbook and the Policy & Guidelines?
0 10
No Yes
Ask to see a Site Procedures Manual for a current client. (This would be a book unique to a particular client site, containing information about routine procedures and emergency procedures at that particular site.)
Is the site procedures manual immediately available for your review?
0 4
No Yes
Score your impression of the Site Procedures Manual you review. Is it impressive, well-maintained?
0 1 2 3 4 5 6 7 8 9 10
Determine if their security personnel are full-time, salaried employees with a clear career path (as opposed to part-timers, people while off-duty from another job, or in some other way not fully invested in a career with this organization).
Score the firm on the issue of whether all personnel are fully invested in this firm, and fully invested in serving its clients (high score), or are some part-time employees (low score).
0 1 2 3 4 5 6
Ask how they recruit and identify candidates for employment. Do they have an organized and presentable recruitment process? Can they show you an actual system, or do they mumble about some loose method of referral? A real organization will have a demonstrable recruitment system.
Score your impression of their recruitment process.
0 1 2 3 4 5 6 7 8 9 10
EMPLOYEE BENEFITS & RETENTION
Ask if the firm provides its employees with fully-funded medical insurance, dental insurance, education assistance, 401k, paid vacation, paid paternity leave, and vision insurance. People can answer these questions any way they choose, but after they answer, ask to see the Insurance Enrollment Document.
Score your impression of the benefits they offer their employees, knowing that the general satisfaction and happiness of their employees will directly affect the service those employees deliver for you.
0 1 2 3 4 5 6 7 8 9 10
While at their offices, meet executives and managers. Ask how long each person has been with the firm. Ask each person about his or her career plans and goals.
Score your impression of how long the managers have been with the firm, and how well the firm retains and satisfies its managers:
0 1 2 3 4 5 6 7 8 9 10
Ask to see the payroll records of the five sample employees, which will show duration of employment along accounting for some of the benefits. Reviewing payroll records for a few employees will reveal the presence or absence of a 401k, demonstrate if they are full or part-time, and will offer valuable insight about the compensation of their employees.
Score your impression of whether the payroll records confirmed the claims made by the firm -- or placed their claims in doubt.
0 1 2 3 4 5 6 7 8 9 10
Do you come away impressed with how they manage their own business and personnel? The score of your impression on this question is perhaps the best indicator of how they would manage their services to clients, and an excellent indicator of whether working with them will bring you quality or liability?
0 1 2 3 4 5 6 7 8 9 10
LICENSING
Confirming that the firm is licensed to provide the service is seemingly most-obvious yet frequently overlooked. Step one is to be sure the prospective provider of security services has an up-to-date and valid license that looks like this (a California document is provided as an example):
Does the firm possess a valid PPO license in their name as shown?
0 3
No Yes
Next, ask to see the State licenses within those five random personnel files you are reviewing. These licenses are required by law. Each file should have a photocopy of the following two cards (a California document is provided as an example):
Did all five random personnel files contain copies of these licenses for your review?
0 3
No Yes
Ask if their security employees are trained in First Aid, CPR, and AED (Automated External Defibrillator). After they answer, ask to see the training documentation for the employees whose files you are reviewing. They should be able to show you these First Aid training documents, CPR cards, AED cards (a California document is provided as an example):
Did all of the five random personnel files contain copies of these cards?
0 6
No Yes
IF THE FIRM EMPLOYS OR IS OWNED BY OFF-DUTY POLICE OFFICERS OR FORMER POLICE OFFICERS...
If the firm employs off-duty police officers there are some specific areas for extra scrutiny. If the firm indicates they employ off-duty police officers or former police officers, then ask to see a personnel file for one of those employees. (Some firms keep no personnel files for the police officers they employ, perhaps wrongly assuming the City will bear some liability for any actions of the officer.)
Is the firm able to present (right here right now) the cards above for any employees who are current or former police officers, and the valid Department Work Permit for any employees who are current police officers?
0 3
No Yes
Many firms tell customers that off-duty police officers and former police officers do not require the same State licenses as other security employees -- because they are already licensed to carry firearms as police officers. This common claim is false. Because of these claims, the State of California maintains a web site specifically to provide extensive and clear information related to police officers offering security services. They list 22 frequently asked questions, including:
Q10: May an active duty peace officer contract to provide armed bodyguard services?
A: No. Only a person with a private patrol operator's license (PPO) may contract to provide security services. A PPO license is required to provide security guard (bodyguard) services on contract to any person or business.
A security guard may not act as an independent contractor to provide security services. A security guard must be employed as an employee of either a PPO.
Q11: May an active duty peace officer contract with a licensed Private Investigator (PI) to perform PI duties?
A: No. Only a Licensed PI may contract to perform PI duties.
All police officers providing security services are required to have a guard card and a gun card, identical to those shown above. Being a police officer does not exempt the security person from this requirement. Being a former police officer does not exempt the security person from this requirement.
(Some departments, including LAPD also require their officers to have a Work Permit issued by the Department.)
Is the firm able to present (right here right now) the cards above for any employees who are current or former police officers and the valid Department Work Permit for any employees who are current police officers?
0 3
No Yes
Some people assume that when a security business is owned by a police officer or when police officers arrange for other officers to work in a security capacity, a State license is not required. In fact, police officers and former police officers providing or arranging security services do require this license, in their company name (a California document is provided as an example):
Does the firm possess a valid PPO license in their name as shown?
0 3
No Yes
Since engaging an unlicensed firm or person exposes the customer to profound liability, additional information about police officers and security services is made available by the State at www.bsis.ca.gov/cus
tomer_service/faqs/peace_officer.shtml.
SUPERVISION
Are all of the firm's security people supervised through full-time video monitoring? The ideal system involves the installation of cameras observing each and every protector who is assigned at a post.
Can the firm show you (right here right now) that they provide seamless real-time supervision of the security people they assign?
0 10
No Yes
This goal could be met by little effort: Simply having a webcam aiming toward posted personnel, and someone observing the images over the Internet. If the firm does not deploy this simple technology to observe and supervise their personnel, ask why not.
If they don't provide real-time supervision, ask what supervision method they do apply, and ask to review a log of Supervision Visits to a sample site.
Score your impression of their supervision method.
0 1 2 3 4 5 6 7 8 9 10
In addition to their quoted hourly rates, ask what other costs might be passed on to you. Does the hourly rate cover the cost of all overtime and the cost for supervisory personnel?
0 7
No Yes
LIABILITY
Ask if they have liability insurance that would extend financial protection to you. After they answer (since anyone can say Yes), ask to see the actual policy or Certificate of Insurance.
Though it is a legal requirement to have liability insurance, some firms have none. Other firms maintain merely the minimum required by State law: only $500,000.
Are you able to see documentation (right here right now) showing that the firm has a valid insurance policy that would provide you with at least five million dollars of liability coverage?
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