Why Risk Management Is Bigger Than Security

Risk managementNumbers vary, but the totality of the security technology marketplace is expected to grow by as much as 6 percent in 2013, as businesses acquire or update their hardware, software and services to thwart ever-mounting threats to their digital assets. The total addressable market is somewhere between $30 billion and $50 billion.

Security is big business, and solution providers can make a killing off the sale of security products and managed services. But focusing exclusively on transactional sales is leaving money on the table and, in many cases, surrendering the market to those with domain expertise.

The real money is in risk management, or the development and support of synergistic security systems and support services that continuously monitor and react to evolving threats and changes in the operational landscape.

The difference between security reselling and security practices is simple. A security reseller deals in the sale of technology products, such as firewalls and antivirus solutions. The value add is little more than deployment and configuration services. Even some managed security services are focused on point technologies with little add-on support.

Solution providers with security practices have domain expertise. They understand risks and threats, regulatory compliance, mapping workflows to security policies and procedures, and the application of security metrics to measure the effectiveness and return on security investment.

In more practical terms, a security reseller is often focused on volume sales where a security practitioner is focused on value sales and customer engagements.

In even more practical terms, a security reseller is focused on selling products. A security practitioner is about providing end-to-end security systems and practices that matches investment to the threat, thus mitigating risk exposure.

Security practitioners have many advantages over conventional security resellers. They enjoy higher average sale prices, deeper customer relationships, higher profitability through professional and consultative services, and better market differentiation. Selling security products is good business, but adding the specialization for risk assessment, security policy development and ongoing support amplifies the security market potential.

Becoming a security practitioner takes planning and time, but the rewards are great for those that make the transition. Join The 2112 Group for a special Web event to explore the structures and benefits of building a security practice. The event will take place Thursday, August 22, at 2 p.m. ET. Register today for what promises to be an insightful and actionable discussion.