Corporate security: the newest guard in national security

The private and public sectors are increasingly intertwined when it comes to national security. Corporations need to guard themselves against external threats as governments are integrating private technology into their supply chain. This is not a new phenomenon but it is becoming increasingly complex after global market liberalisation and the reduction of trade barriers leading to economic integration. If the last six years have taught us anything, it is that geopolitical stressors directly impact the world’s economy. Uncertainty has become the status quo and the need to anticipate and institute stronger security measures requires further examination.

History teaches us that the private sector has long been influential on foreign policy. The Dutch East India Company and the British East India Company had private militaries with significant intelligence resources, which were superior in relation to the government’s resources. The United Fruit Company had vast control over Central America as well as the ear of the United States government to carry out regime change. Corporations carried most of the weight when it comes to colonisation but this was authorised by the government to strengthen the economy. The symbiosis between the two sectors helped the most developed countries become great powers and gain control over essential resources. Modern governments continue to assist the private sector through policy incentives to develop new technological advancements, but at the same time, governments are regulating businesses leading to a precarious relationship. 

Private enterprises provide critical infrastructure to financial institutions, telecommunications, transportation, energy resources, and a large host of sensitive data. All of these areas require a high level of security to avoid any kind of catastrophic breach via physical or cyber attacks. A secure supply chain in all of these sectors means sharing intelligence between the public and private entities. Research from “Strategic Insights” at Australian Strategic Policy Institute has explained that the Australian government has a difficult time sharing information due to inter-government department silos as well as the distrust in sharing information on both sides for fear that each sector is holding back crucial information. In the United States, the Department of Justice has encouraged the private sector to self-report and collaborate, under an Executive Order issued in 2024, to protect and share data that threatens national security. The benefit for the private sector is that if they share information, they are less likely to receive a penalty if there is a national security incident. Intelligence sharing can also lead to lucrative government relationships and is especially true for multi-national corporations who are looking to enter new markets. 

Escalating geopolitical tensions have created greater risks for corporations. A drone flyover on the Copenhagen airport created chaos for aviation. The Strait of Hormuz closure restricted the export of fertilizer at the height of “crucial spring months, during which major fieldwork must begin.” Artificial intelligence is becoming increasingly relied upon in many sectors but safeguards to its implementation is dependent on the private company and its ability to prevent cyberattacks or display security vulnerabilities. A coordinated response and intelligence sharing between the private and public sectors has reached a critical point in the relationship between the two. It is imperative that each group works together to establish greater preventative measures instead of reacting to each crisis as it comes along in the name of national security.