Five reasons cannabis companies need a security master plan

When it comes to security for a business, we like to use the analogy that you can build Fort Knox, but if you leave the door unlocked, someone’s going to get in. And nowhere is this more prevalent than across the cannabis industry – at every point in the process “from seed to sale.”  To date, the recreational use of cannabis is legalized in 18 states, the District of Columbia, the Northern Mariana Islands, and Guam. Another 13 states and the U.S. Virgin Islands have decriminalized its use. And that use is growing with medicinal licensing in 36 states.

Blame it on the pandemic, or the more widespread legalization, but in 2020, the industry hit a record of $17.5 billion, up 46% over 2019 according to BDSA, a cannabis sales data platform. By 2026, the same company expects sales to reach $41 billion annually as more mature markets for cannabis emerge and new states begin legalizing the crop.

Whether the company is involved in the retail stage, cultivation, edibles and manufacturing, processing, transportation and storage, dispensaries, or operations management, every stage must be rigorously protected.

Any cannabis operation cannot invest in only cameras and call themselves ‘secure.’ Without cybersecurity protocols in place, online criminals could access private data and IP. A location without advanced physical security might suffer from theft or violence. Without investigative services, fraud may occur.

This is where a security master plan comes into play. Having strong security practices doesn’t mean that you must compromise culture or an inviting atmosphere, but it does mean that your interests can be protected, and threats minimized.

Here are five reasons why a security master plan can mean all the difference in the cannabis market:

Technology Can’t Fix Everything

Intelligence-driven technology has come a long way with the advancement of machine learning and the use of artificial intelligence to help sift through incoming data points to create more proactive security. However, technology is not enough to anticipate the security needs of the business without additional strategy in place. Policies and procedures, best practices, and processes must accompany the technology in place to make them work for you.

One key area of this for cannabis companies is observing risk through every lens possible. By thinking through potential risks, every piece of the organization – from seed to sale – can utilize technology investments to support vision and strategy. Coupled with smart policies and group training, a business can be sure that they have taken the necessary measures towards compliance and protecting their most valuable assets – their staff.

Location Matters

A critical piece of the evaluation process for a master security plan is simply walking through the businesses’ physical location. Across the cannabis industry, this can be a single retail location or a full vertically integrated operation (and everywhere in between). During such an assessment area crime, environmental exposure, and other risks can be tied to the physical location of a facility that will impact the outcome and recommendations of the survey.

Within a physical space itself, small details in the building may change the way in which technology functions, deeming it unfit or insufficient. Building a security master plan alongside an expert uncovers and plans for risks before they become problems and liabilities. The investment in the front end is minimal compared to the potential damages and financial loss caused by a weak security plan and poor execution. Security experts master their craft through years of experience and continual learning. Similarly, you wouldn’t have a marketing person fix a server, you shouldn’t have an unqualified person plan and run security.

Meeting Licensing and Regulation Requirements

While each state and jurisdiction will have its own licensing and compliance measures that must be met as it relates to the business, security requirements are more stringent across the cannabis industry. Each state requires some form or electronic alarm or surveillance system, along with various rules around how long footage must be stored and accessible. But a lot of this can be tied to licensing and the terms each business must meet when applying.

A master security plan goes a long way in getting ahead of the process and ensuring that the business remains compliant. Plus, the longer you wait to implement security practices and systems, the larger your capital expenditure will be. Better to start somewhere and implement and evolve over time with a growing, successful company.

Going Beyond Physical Security

Putting together a master security plan is important because it reminds us that security is not only about management of the physical space but of business best practices. Oftentimes, meeting regulatory requirements can mean more diligence on who can buy cannabis products, which can lead to more elevated emotions and interactions. Violence at some locations can escalate and cause additional challenges. However, security planning brings in the physical protection aspects with response training and the implementation of overall best practices to better serve customers and identify potential problems before they become full-blown incidents.

True Integration Means Cost Savings

Transporting a valuable crop and the various steps it takes to get from one point to another takes foresight and a massive team. Security at scale requires more streamlined integration because when an incident occurs, its impact is felt at every level. The same goes for the management of multiple software platforms that manage physical security threats and seed-to-sale tracking platforms. The costs associated with manual management of multiple, siloed devices or platforms can severely limit an organization’s ability to respond efficiently and effectively. Viewing incidents through a singular integrated lens means bringing multiple data points together to deliver intelligence while reducing the costs associated with false alarms, additional staffing, or unnecessary response protocols.

Security is an investment in your people and assets – especially in the unpredictable world of cannabis production and sales. This investment in a comprehensive plan that considers the regulation and licensing requirements, expansive operations locations, and multiple data points to better streamline physical security is priceless.