The Science of Security
Concerning trends in dispensary and manufacturing facility robberies in other legal markets are starting to crest in the news, raising eyebrows as videos of cars driving into dispensaries and states revise their own public information policies.
Greenway Magazine sat down with some of the leading security thought leaders in Missouri to pick their brain about unique considerations this market requires of business planning and how to have an effective plan. This feature is part of a security series that will be continued online at mogreenway.com, where Greenway will continue the conversation, exploring transportation, distribution, and new technology.
Krista Salvatore, director of sales at Applied Technologies in St. Louis, told Greenway Magazine that each facility type has its own challenges, demanding an initial assessment or review between a security company and a facility’s architect and for the two to work together. “Although there are common challenges and requirements from a network security perspective, physical security and integration with the network can vary from business to business based on facility type, size, location, internet access for remote or more rural locations, automation integration requirements, remote access and monitoring, employee access points and more,” Salvatore said. “Fortunately, we have extensive experience working with a wide variety of facility types due to our relationship with our parent company, French Gerleman.”
KC Cann Transport, based out of Blue Springs, provides security and transportation solutions for facilities. Company president Kevin Schnell stressed the need for adaptation and collaboration for an effective security plan.
“There are so many factors that can change the answer with just one little detail change,” Schnell said. “However, I believe cultivation can be the most challenging. The main reasons for this are the size of the operation and the product that is being produced. The ‘flower’ or ‘bud’ is produced in great quantities in many cases and is an untraceable (for the most part) raw material that is moved in bulk. It can sell quickly on the streets/black market and is the most common way to consume marijuana, therefore, making it a bigger target, ranked up there with currency.” Schnell said his biggest concern for facility security is skimping or negligence for lower front end costs. “You will need to ask yourself, ‘is the safety and security of my employees and assets worth cutting corners to save a buck now?’ Whether hiring the wrong security company for the job (lacking experience, training or wrong temperament and adding liability) or not implementing the right technology or enough of it, either can be dangerous financially, physically and liability wise,” Schnell said. Mac Johnson, CPP, co-founder and COO of Aegis Management and Ceres Management out of St. Louis, pointed to dispensaries as presenting strong challenges for security.
“Dispensaries will be the most difficult to secure against external threats because of the environmental and functional nature of retail operations,” Johnson said. “The fact that they are comparatively open to the public, and often being retro-fitted from non-secure infrastructure (e.g., strip malls). Manufacturing facilities will be the most difficult to secure against internal threats, specifically theft and diversion, as both dry and wet extract product is in its most valuable state and logistically easy to conceal. In similar circumstances, many pharmaceutical manufacturing plants require all personnel to be cleared through X-Ray and Thermal surveillance systems. I’ve even seen extremely sensitive and wildly expensive imaging systems used by major shoe manufacturers to identify workers attempting to steal the small branded tags which can be sold to counterfeiters. The risk to manufacturers is a natural byproduct of creating something with high liquidity and high mobility.”
CST Solutions CEO Kevin Ellison also believes dispensaries hold the greatest security challenge.
“Dispensaries are the most challenging facility to secure because most of the people entering and leaving the facility are unknown except for the patient or caregiver credentials they show when entering the facility and at checkout,” Ellison said. “For all other facilities, the people in the facility are employees and should pose a little security risk if the background checks and screenings are thoroughly completed.”
Ellison addressed different scenarios at different facility types that can be areas of concern. In testing facilities, the disposal and handling of samples can be a vulnerable spot. In cultivation operations, trimmers have been known to smuggle flower out of the facility. Manufacturing facilities are prone to the skimming of oil – using 10 drops, stealing 1. And in dispensaries, Ellison is concerned with the downplayed risk of armed robbery – a trend seen in older markets that is often swept under the rug. Ellison said every time a transportation vehicle stops is a vulnerability.
For his part, Johnson’s biggest concerns all come from planning and foresight. Does your cultivation facility have a dedicated and responsive security staff? Is your manufacturing facility outfitted with high-quality cameras and software-enhanced monitoring? Do your dispensaries and those you do business with have effective communications equipment for all staff? Though Missouri’s legal market will be a medical one, facilities will see different and similar challenges to other industries – whether a storefront or a manufacturer.
“The security needs for Missouri’s Medical Cannabis companies are challenging and unlike most other medical manufacturers and retailers, but there are some very similar examples in each,” Ellison said. “In medical industries, similar security challenges can be found in securing Pharmaceutical manufacturers, pharmacies, and hospitals. Likewise, there are similar examples in the Retail industry in jewelry stores and similar stores that sell items of high value with small product sizes. Securing Cannabis is challenging, but it isn’t the only or the first, market with such challenges.”
“Facilities producing marijuana-based products are unique to other medical manufacturers for a couple of reasons,” Schnell said. “One, the currency involved at this point is mostly cash-based. Two, marijuana is not traceable like an opioid. Opioids are uniquely marked with their own code. It could be very time-consuming planning to ‘rob’ a pharmacy as each pharmacy has a huge variation of medication throughout the facility whereas Marijuana is just that. It comes in different forms but is still marijuana-based. Marijuana is produced in large quantities (typically) making it an easier and more convenient target.”
Johnson says that there are pros and cons to the medical market. On one hand, dispensaries are provided with an added layer of credentialing. On the other hand, the demand for illicit products is inflated, increasing the risk for diversion. All facilities were asked on their license application how and what their plan is to prevent diversion, putting the concern in the minds of facility owners.
“With marijuana being legalized medically, I can tell you it personally got my attention in a positive light,” Schnell said. “Having a military and law enforcement background, protecting a ‘drug’ was not on my radar… that is until I learned the legalization of marijuana (medically) had so many positive uses for patients. This in itself gave me a clear conscience not only to get involved but also to bring on many other military veterans and former law enforcement personnel to be involved with the security of the newly legalized industry.”
Ellison stressed that a medical market also comes with an additional layer of protection for patients, including HIPAA. “Anytime a patient of any type is involved you have to assume that HIPAA is likely to be a consideration. HIPAA is specific to patient information and typically is primarily focused on technology security. Patient data is very valuable which makes it attractive to thieves and recently there has been a significant increase in the number of attacks to get patient data from dispensaries. This is predicted to be one of the biggest challenges facing dispensaries in 2020.” Security risks for the market are not limited to diversion. It’s 2020, which means network breaches and hacking is a huge concern, putting not only a facility and it’s a product at risk, but also patients, employees, and plans.
“Follow the plans,” Ellison said in the event of a break-in or breach. “Every facility should already have very strict and concrete procedures related to break-ins and breaches. The staff should be fully trained on what to do, what to expect, who will interact with law enforcement, how to handle any injuries, what to do with customers, etc. When traumas or unexpected tragedies occur causes many people to be unable to think clearly or even rationally. Having strictly defined procedures for these scenarios is often the difference between recovering quickly versus not opening the doors again.”
“Ideally, your security team should be able to, for the most part, prevent break-ins or breaches,” Schnell said. “Yes, it’s easier said than done but CAN be done. In the event of a breach or break-in, having the appropriate level of security to react to said breach or break-in is imperative. But, ideally, having the appropriate levels of security should mitigate those issues or certainly minimize it greatly. So many factors can help minimize or mitigate these break-in opportunities. Don’t cut corners on your security needs!”
With new business comes new risk and security companies are looking far and wide at how to best protect their clients.
“Your new business venture invites a lot of potential risks,” said Salvatore. “The demands on your operation will be great. Digital security, data back-up, monitoring, identification and documentation will be vital to your ongoing success. We also know time is limited to get your operation up and running and under full compliance.”
Ellison says a solid security plan will protect people, product, and property, reminding facilities that money and product can be replaced – but people cannot – a sentiment echoed throughout security providers.
“KCCT’s top priority for providing security to, or as, a facility is utmost the safety of the employees involved with the process of cultivating, manufacturing, testing and dispensing their products,” Schnell said. “That goes for the CEO of each company all the way down to the newest, least experienced employee and lowest paying job in the industry. If you are an employee of any given company, you should be just as safe as anyone else, regardless of your position. Having said that, the security of the product and revenue falls a close second. At the end of the day, state regulations and basic business acumen both demand protection for new facilities – and patients.
“You’ve invested considerable time and money to secure your new medical cannabis business and license. Now it’s time to protect and secure it,” Salvatore said. “Our goal is to help you create a safer and more secure environment by integrating solutions that encompass physical security, network security, as well as managed services to ensure there is no interruption in your business operations. Applied Technologies’ extensive knowledge of network design and implementation ensures you an integrated approach that will generate results.”
This feature appeared in the January/February 2020 issue of Greenway Magazine, Missouri’s cannabis industry publication.