The headquarters of three quarters of FTSE 350 companies are situated in areas with a higher than normal risk of crime; that is according to G4S Security Services (UK).
The G4S Corporate Risk Report, which uses data from CAP Indexโs CRIMECAST system, suggests that of the FTSE 350โs 20 most vulnerable locations for company headquarters, half are outside London.
G4S has analysed the potential vulnerability of the headquarters of every FTSE 350 company, highlighting the importance of risk mapping when companies decide where to locate. The system combines criminology information such as police incident data and client loss reports with statistics and demographic data (such as population and housing data) to produce measurable CAP Index Scores. Categories for the CAP Scores include crime risk for violence, sexual offences, robbery, burglary, theft, fraud, criminal damage, crimes against property and drug related activities.
The results reveal that on a sector basis, the prevalence of telecommunications companies in high risk areas means that this sector has an average CAP Index score of 489, almost five times the CAP Index base of 100, demonstrating its relative vulnerability to crime risk. At the other end of the scale, companies in the ‘Technology Hardware and Equipment’ sector are least at risk with an average CAP Index score of just 48.
The company with the single worst CAP Index rating is a โGeneral Financialโ firm with a CAP Index score of 809, more than eight times the CAP Index base. This company is located in an area with an individual CAP Index rating of 1031 for violent crime; 893 for sexual crime and 1570 for fraud โ in other words, the risk of fraud is nearly 16 times higher than the UK national average.
At the other end of the scale, the headquarters of a company in the โTechnology Hardware & Equipmentโ sector scored a CAP Index of just eight, due to its low risk location with comparable scores of 16 for violent crime, 16 for sexual crime and 15 for fraud.
Douglas Greenwell, Sales & Marketing Director of G4S Security Services (UK) said: โThese findings highlight some of the risks companies should consider when selecting where to locate their corporate headquarters. Given the current threat of terrorism, it is particularly relevant that three quarters of UK corporate headquarters are situated in areas with a higher than average risk profile.
โThe CRIMECAST system can play an important part in helping companies assess where the greatest threat to their business is likely to come from and to then devise appropriate measures to mitigate the risk.โ
Jon Groussman, President and COO of CAP Index added: โThis is the first time weโve used the CRIMECAST system to analyse the risk profile of FTSE 350 company headquarters. Our analysis takes into account a wide range of crime and social statistics to produce a map of the postcodes with the highest risk profile. This type of crime forecasting is popular with many FORTUNE 500 companies in the US and we are now seeing more interest from UK corporates.โ
Regionally, Leeds/Bradford and Birmingham had the most companies with high CAP Index scores followed by Glasgow with companies located in Somerset, Buckinghamshire and Wiltshire faring best in terms of their low risk profiles.
About the CRIMECAST system
It combines data regarding violent crime, sexual offences, robberies, burglaries, theft, fraud, criminal damage, property crime and drug offences to map specific postcodes from across the UK most at risk. The CAP Index base score is 100. The analysis was based on the FTSE 350 constituents as of March 2008. CRIMECAST is an internet-based solution created by CAP Index for assessing crime vulnerability and site-specific risk mapping. It enables real-time analysis and comparison between the risk profile and crime vulnerabilities of any address in the UK.
