Security Risk Assessments for Cannabis Businesses

Being able to determine potential risks and enact procedures that mitigate their impact is critical for cannabis businesses. By implementing security measures like video surveillance and alarm systems, security guards, and other barriers, business owners can lessen their chance of facing legal action by taking preventative actions. To do this, a trained security expert should be contacted who can conduct on-site security-risk assessments to identify vulnerabilities and recommend the best solutions based on the license type and the stage of development.

What are Security Risk Assessments and Why are They Important for Cannabis Businesses?

During a security risk assessment, a business determines security and safety risk exposures on their premises. Usually, business ownership and store management consult with a trained security expert who analyzes the property to determine areas with the greatest vulnerability. This may include analyzing 3-5 years of crime data for the property and surrounding area, noting robberies, burglaries, nearby instances of civil unrest, gang-related incidents, and other violent crimes. Some forecasting programs give a color-coded synopsis, identifying the likelihood of specific crimes occurring and comparing the location’s overall crime profile against the city, state, and national average. The proximity of the business to hospitals, emergency rooms, and police stations may also be considered, as well as environmental concerns including weather and natural disasters. In general, a security risk assessment should provide a detailed report of the security experts’ findings and present a holistic view of a location’s ability to protect its employees, customers, and/or the general public.

With more states legalizing cannabis every year and businesses booming throughout the country, liability becomes an increasing concern. A recent Reuters study on cannabis-related issues found that 34% of litigation cases were over “commercial disputes” which included breach of contract, but also constituted security issues and business torts. By simply investing in an on-site security review, businesses can save themselves thousands of dollars in legal fees down the road.

When Should Cannabis Businesses Conduct Security Risk Assessments?

At all stages of development, businesses should be mindful of security issues and take the necessary precautions to protect their properties. Specifically, a security risk assessment should be conducted during the pre-inspection phase, after the build-out concludes, and annually thereafter. Businesses should consistently monitor issues that arise from these reports and follow through on all recommendations in a timely manner.

How Can Sapphire Risk Help?

Tony Gallo and the team of experts and consultants at Sapphire Risk Advisory Group have worked to secure medical marijuana and recreational cannabis businesses in 36 states. Follow us on social media to stay up to date with more security best practices and cannabis industry updates!