Presented
by:
Sponsored by:
6
DATA INTEGRITY IN THE CANNABIS BUSINESS
For an industry that may keep tabs on personal and medical records, good cybersecurity is a must.
BY TREENA HEIN
20
GROWER DAY: SECURITY FOR THE CANNABIS COMMUNITY
Photos and highlights from the June event spotlighting security options for the cannabis industry.
21
Q&A: DAVID HYDE. PRESIDENT, 3 SIXTY SECURE
Leading security expert David Hyde discusses cannabis post-legalization and what might be next.
In April of this year, we presented a security best practices session for grow operators at O’Cannabiz 2019, held at the International Centre in Mississauga. Our vice-president of finance and sales, Martin Fregeau, and our business development director, Adolfo Proietti, discussed five ways in which cannabis producers can safeguard their high-value products.
1. Choose a security supplier who will conduct a comprehensive security audit by certified consultants. The security provider should have the expertise to help you identify gaps in your current security measures and create an action plan to improve your physical security by building safety and fire prevention practices.
2. When choosing a security supplier, inquire about the firm’s experience in installing systems for heavily regulated industries and familiarity with Health Canada requirements. According to Adolfo, “It’s not a good idea to do the bare minimum to get the approval from Health Canada; just because you get clearance from them doesn’t mean you should stop there because people can still rob you.”
integrated security services GardaWorld is uniquely positioned to provide end-to-end security solutions throughout chain. and security consulting surveillance and Air Transportation and electronic surveillance security
3. Choose the right security system for your organization, both to comply with Health Canada’s requirements and to get the most out of your investment. Look for an integrated security system which includes access control, alarm monitoring and video camera, all accessible on the same platform and able to send real-time notifications to an off-site video-monitoring company.
4. Train your staff for the worst-case scenario by using proven methods for reacting in an active shooter or bomb threat situation.
5. Save yourself the headache: look for a fully integrated security supplier who can provide best-in-class, end-to-end security solutions throughout the cannabis value chain. Martin recommends that “every time cannabis is transported from one place to another, a secure transportation plan should be in place. This could include a temperature controlled armoured vehicle, armed officers and a detailed itinerary and action plan in case of an emergency.”
The cannabis market in Canada is evolving rapidly, so when it comes to transporting the product in its various forms, special attention must be devoted to the use of secure transportation companies. Our recommendation is to use the same external security that a bank uses.
As a national, fully integrated security services provider, GardaWorld is uniquely positioned to provide best-in-class, end-to-end security solutions throughout the cannabis value chain.
• Risk assessment and security consulting
• Production site surveillance
• Secure Ground and Air Transportation
• Security systems and electronic surveillance
• Retail environment security
• Staffing services
For an industry that may keep tabs on personal, financial and medical information, good cybersecurity is a must
By Treena Hein
It affects an entire industry when a data breach occurs. In Canada’s cannabis sector, the two mostrecent breaches in the news involved personal information — in the second case, very personal. In November, 4,500 customer data were stolen from the Ontario Cannabis Store (OCS) using the Canada Post package delivery tracking tool.
To date, no more detail on what happened has been presented. At the end of 2018, a medicinal cannabis referral firm located in Calgary, called Natural Health Services, also had a breach involving a whopping 34,000 patients. Although the details are not yet clear, it is alleged that this breach went beyond names and addresses to access of private medical information.
The purpose of these attacks — what the thieves might want to do with the data — is also not clear. But whatever the reason, we can be certain that data security is a critical issue in the cannabis sector.
Different types of cannabis businesses must secure different types and amounts of data. Licensed cannabis producers, which generally sell medicinal cannabis online, might sell recreational products in Manitoba and Saskatchewan, and also have physical stores in some provinces. As such, they have a lot of data to secure, including sensitive medical information. Then there are government-run online purchase systems for recreational products, such as OCS in Ontario, which must secure names, delivery addresses and more. Privatelyowned and government-run stores selling recreational cannabis in various provinces would have very little client data to manage — and none at all for customers who pay in cash.
However, even in a store scenario where customers use cash customerspecific data, like email addresses, might be requested and subsequently stored for mailing and marketing purposes, such as online newsletters or special offers, says Ryan Lalonde, CEO at Buddi, a Vancouver-based platform for cannabis
retailers providing cannabis education and product information.
In the cannabis sector, beyond personal data of customers, data which might be taken from a company could include intellectual property, research results and financiallysensitive information, “all of which make [cannabis firms] especially attractive targets for cyberattacks,” notes business services provider Ernst & Young (EY) in a recent web article. These attacks, which commonly involve ransomware, malware and phishing, “are becoming more prevalent, severe, and sophisticated,” the company adds.
Any discussion of data security must include the fact that while data breaches involving personal information are reported, attacks that don’t generally aren’t. That is, there is no way to know exactly how many data attacks are actually occurring within any industry, or the degree of success of these attacks.
Data security in the cannabis sector is not just about cyber attacks. Indeed, cybersecurity attorney Kathryn Rattigan states in an article in the National Law Review published in January, that “additionally, many of the same threats apply to the cannabis industry as those that affect all other businesses that are collecting data — use of public wi-fi by employees, loss of paper records, connected smart devices to your company’s network, and email phishing scams.”
Lalonde notes that for each type of data, there is a set of proper corresponding actions to take to secure it. Data on paper, for example, must be locked up (physical security) and when no longer needed, fully destroyed. Access to digital information should be restricted to appropriate personnel (organizational security) and that access should be monitored. All access should require strong passwords and stored in an encrypted format with firewalls in place (technological security). There should also be a regular deletion of digital data that is no longer required.
Precautions aside, since a breach is
always a risk, experts also recommend making preparations for that eventuality. “Definitely have a plan in place,” says Lalonde, “to replace the data set, detect what was compromised, notify customers if required, and so on.”
Bryson Tan, EY Canada associate partner (cybersecurity), agrees that a data breach response plan is important, noting also that the design and management of that response plan may be one of the data security tasks that cannabis firms choose to outsource.
“What a company outsources or does in-house depends on the approach it takes and the level of complexity,” he explains. “Firms with a good IT team can certainly do some of the basics in-house, like firewalls, configuration management, encryption and security monitoring (monitoring for malicious activity). A lot of operating systems have encryption included, so a sharp IT person on staff can handle its management.”
risk for access by law enforcement agencies. However, there are others who think it’s perfectly fine, so each company must weight the pros and cons when doing due diligence.
As to whether firms should outsource storage of large data instead of using their own servers, Tan believes there are benefits and challenges to both avenues — but the same warning applies. That is, if you have your data stored with an outside party, it’s critical that ongoing risk assessments as well as other security management duties are being performed through an independent third party. Otherwise, Tan warns, “there could be even greater risk.”
“At the point of a breach, you really need an experienced team to call on.”
— BrysonTan, EY Canada
However, more complex tasks, such as penetration testing (simulated hacks to test for weaknesses) and breach response, are often outsourced.
“At the point of a breach, you really need an experienced team to call on,” notes Tan. “This team will do everything possible to seal the breach, figure out what happened and take other appropriate actions. It’s invaluable to have access to the right resources and skill set when you need them most. Not only will the situation be handled effectively, but having that expert team takes the pressure off your staff in terms of making the best decisions about what to do next and who needs to be involved, whether that’s certain company IT or HR personnel, external counsel and so on.”
Any breach response plan worth its salt will include steps for accessing back-up data and restoring affected systems. This means that as a standard operating procedure, all pertinent data should be regularly and continuously copied and stored in a separate storage system.
Tan notes that this is quite achievable in a cost-effective manner and may reduce overhead and capital costs. “Moreover, companies should test their incident and crisis management plans on an ongoing basis,” he says, “so that they are adequately prepared in the face of an active cyber attack.”
Not only must firms test their plans, but they also — in Tan’s view — must ensure they do not let their technology become outdated. Allowing this, along with other possible lapses, makes a firm “more susceptible to attacks, with a potentially crippling effect on day-to-day operations. That’s why it’s so important for cannabis companies to implement proactive, ongoing efforts to reorganize and update cybersecurity measures in today’s climate.”
In terms of storage security, there are many experts who highly recommend storage on servers only within Canada — as storing data on servers located in the U.S. for example, could put it at
For his part, Balaji Gopalan recommends using the large ‘public’ cloud storage companies to store any digital health-care information: Amazon, Google or Microsoft.
“Smaller providers may not have the security protocol commitments needed,” explains the co-founder of MedStack, a Torontobased firm offering automated infrastructure management specifically for application developers in health care. “Unless you’re leveraging a platform purpose-built for healthcare compliance, you will also need a security ‘DevOpsskilled’ (development and operations) team to create secure infrastructure to interface with these storage systems.”
Cannabis firms should also look into cyber liability insurance to help deal with a breach. “Definitely explore your options to manage risk, just as you do with other forms of insurance,” says Tan. Looking at all sectors of the economy, EY’s 2018-19 Global Information Security Survey (GISS) indicates that 65 per cent of respondents from around the world don’t have cyber insurance.
Gopalan believes every cannabis company should have cybersecurity insurance, and adds that the cost of premiums is related to the degree of security that the insurance company perceives to be present.
“I can’t say that an insurance company will refuse to insure a cannabis or any other firm with poor systems, but your rates will be high because you are a higher risk,” he notes. “We decided to work with an insurance firm to really have them understand the security of our system, and this firm now offers preferential rates to our health-care app developer customers because our platform ensures that their risk of a data breach is so low.”
Tan also believes that executives of all stripes need to boost their data security knowledge level. In EY’s survey, only 16 per cent of respondents believe their boards have sufficient information security knowledge to fully evaluate cyber risks.
“Clearly there is a gap that must be addressed,” he says, “and companies across all industries would be wise to invest accordingly and implement a robust cyber strategy with sophisticated technology and security measures in place.”
“The reality is,” says Tan, “that cyber attacks are a matter of ‘when’ rather than ‘if’ for any company.”
Treena Hein is a freelance writer based in Toronto.
Like many other facilities that handle sensitive products, cannabis security requirements are very complex.
THE BULLDOG FIRE & SECURITY team has an in depth understanding of:
• Cannabis Production Security and Clearances
• Health Canada’s Cannabis Act
BULLDOG FIRE & SECURITY has worked with many facilities and has years of experience in this field. We utilize a variety of solutions and services in order to build customized solutions that are compliant with Health Canada regulations.
We offer a variety of solutions and services including:
•Access Control
•IP Video
•Integrated Security Systems & Fence Perimeter Intrusion
•ULC Listed Monitoring
•Skilled and Knowledgeable Technical Team
•Data Comm & Structured Cabling
The recent legalization and regulating of cannabis in Canada has caused an explosion of activity in the industry in just a short time. Over the past year, we have seen the number of production facilities increase dramatically, as well as their security needs, now to include the needs of legal dispensaries as well. The evolution of the legalized cannabis industry has resulted in a scramble to educate cannabis facility operators on their security needs as stipulated by Health Canada guidelines.
BULLDOG FIRE AND SECURITY has a wealth of knowledge and experience in this industry, working with numerous facilities to ensure they are compliant with Health Canada, while also addressing their other security needs. Our team has an in depth understanding of:
• Cannabis Production Security and Clearances
• Health Canada’s Cannabis Act
Services & Solutions for Cannabis Facilities
BULLDOG FIRE AND SECURITY will work with your consultant, as well as your construction and operations teams to develop a system that will ensure that your facility is secure. A comprehensive system may include elements such as security gates, access control, security cameras, and an intrusion alarm system.
ACCESS CONTROL – Cannabis regulations indicate that access to areas where cannabis is grown, stored, or handled must be restricted to staff who are required to work in those areas. Access Control Systems can be utilized with both interior and exterior doors, and are scalable so that they can change as your business grows.
Security Cameras – The perimeter of your facility as well as all areas where cannabis is produced, stored or handled must be monitored at all times. A networked security camera system throughout the interior and exterior of your building is a requirement in order to satisfy the requirements by capturing and recording data 24/7 to protect your staff, products, and building.
ULC Listed Monitoring – A ULC Listed Monitoring Station acts as a set of eyes to provide your building with 24-hour coverage that will alert you and the appropriate emergency responders of any alarms or emergencies.
Integrated Security Solutions – An integrated security solution brings together all of the elements of access control, security cameras, and intrusion systems in a collaborative way to maximize the capabilities of your system. Through integration, you can receive video clips, notifications, and user insights.
Data Comm & Structured Cabling – Complete end-to-end certified Networking solutions for your IT structured cabling needs for computer terminals, scales, and wireless access points ensures that your operations not only function smoothly, but are also secure from possible compromise.
Each project we undertake begins with a full review of your site and operations in conjunction with your consultants and contractors so that we can design the perfect solution for you. This collaborative effort is part of our dedication to working with you every step of the way to ensure that your facility is compliant so that you can get your business up and running quickly. This collaboration will include: • Threat Risk Assessment
• Security Site Plan • Security Floor Plans • Separate Secure Storage Security Plan
• Description of Security Plan • Detailed Security Standard Operating Procedures (SOP)
• Resume of Suitable Quality Assurance • Security Background Checks
LEARN MORE - BULLDOG FIRE AND SECURITY has the expertise to navigate the complex needs of your cannabis production operations. We pride ourselves on using innovative, cutting edge technology to build customized solutions for our customer’s unique businesses.
To schedule a no obligation assessment of your facility’s needs, call us at 1 866 670 1590, or email info@bulldogsecurity.ca.
a video surveillance solution that’s reliable, easy to use and for your growing cannabis business. With March Networks®, the clear video you need, plus secure access to the system using our intuitive client software or convenient mobile app. Networks intelligent video solutions are trusted by leading operators across North America to reduce losses, ensure compliance, improve e ciencies and keep their operations secure.
Faced with complex standards, regulations, and deadlines? ADT Security Services Canada is the number one choice for custom solutions - where and when you need them.
We all know the difficult challenges of the Canadian cannabis market. As our country’s leading security provider, ADT Security Services Canada guides and protects both large and small cannabis companies. With decades of experience in similar sectors – medical, pharmaceutical, alcohol, tobacco – they offer you the national resources you need, as well as a local presence to meet immediate requirements and deadlines. Their knowledge and experience ensure you will harvest the fastest possible return on your investment.
How do you cope with the complexity of federal, provincial and municipal cannabis regulations and ULC S4400 standards? ADT Security Services Canada provides your custom security setup and systems to give you exactly what you need – for everything from passing a Health Canada inspection, to meeting all the requirements of Canada Cannabis Regulations SOR/2018-144.
According to Hugo Mongrain, ADT Commercial Installation Director, “Meeting deadlines is the biggest challenge faced by a security provider to the cannabis industry. For example, a new grow operation has a very narrow window of time for installation of security systems. ADT has dedicated Project Managers who work closely with the General Contractor and on-site teams to ensure that they have technicians and equipment on site as the construction of the building progresses in order to meet the optimum requirements of the producer. Otherwise, Health Canada may not issue a permit for cannabis production.”
Mr. Mongrain goes on to explain the security factors of prime importance to cannabis commerce:
- The industry is most similar to the medical industry for the quantity and complexity of all the rules and regulations by which it is governed and restricted. ADT Security Services
Canada now serves the budding billion-dollar cannabis industry backed up by decades of experience in serving the medical/pharmaceutical sector;
- Short deadlines are the norm. With offices, technical teams and monitoring stations across the country, ADT Security Services Canada is in the best possible position to ensure such schedules are met;
- The cannabis industry requires the highest level of security products and services, as are provided by ADT Security Services Canada.
Smart surveillance now includes video analytics
Video surveillance is not just a helpful add-on for the cannabis industry, it is a regulatory requirement in Canada. Whether you are a wholesaler, retailer, manufacturer, or distributor of cannabis or canna-infused products, video surveillance helps protect your investment and maximize your profits.
You can’t just trust ordinary surveillance to watch over your operations. ADT Security Services Canada employs smart video analytics to help you monitor and analyze your video footage on-site or remotely on your smartphone, tablet or laptop.
With so many new factors to consider in this industry, leave security to trusted professionals. Use the technological advances of smart surveillance security and analytics to:
• Protect your cannabis site
• Enable remote monitoring
• Safeguard against theft (from both internal and external forces)
• Ensure your operations are running efficiently.
As the industry continues to experience rapid growth, the requirements will, no doubt, evolve and change, and will always require top-ranking security. Very few companies in Canada can provide the comprehensive security, next-level technology, professional guidance and support that the cannabis industry requires. With over 100 years’ experience with tested protocols and rigorous training for support personnel, ADT Security Services Canada steps up to proudly provide the cannabis sector with the custom security you need.
Your World differently. We listen first and work with you to design important, becoming a partner in the process. We’re think creatively, work collaboratively, and value . • solutions@ca.g4s.com
Your business is dynamic and constantly changing. We get that. At G4S we also understand that our customers are unique, particularly in the Cannabis industry. You might be a micro-grow operation starting a security program, or maybe you see the need for a customer service-centric program to serve as an extension of your brand in a retail environment. You could be somewhere in between. The key is G4S has the tools and know-how to help you succeed, whatever part of the journey you’re at.
It might be easy to view security as a basic component in achieving Health Canada compliance, or a necessary piece in launching your business. Some get stuck and overlook the role it plays in the future development of their operations and fail to realize the long-term value it can deliver. Setting up a robust security program from the start is important but it doesn’t have to be expensive. At G4S we work with you to understand your business goals and design a program around what you value most. For some, that might be an emphasis on training, such as CannSell licensing. You might value discretion and are concerned with information leakage, requiring all your guests and visitors to sign in via an auditable visitor management system. More often than not, discussions we have with our customers surface new threats or potential solutions they were unaware of to begin with.
We start every conversation with understanding your resources, the risks you are facing and the potential resolutions available. The future development of these factors is also considered and we work to devise a continuous risk management strategy to help define the total cost of ownership for your security programs. We always review the fundamentals, such as basic policies and protocols. This is one of the easiest and most budget-friendly ways to ensure your program is off to a good start.
If you already have security services in place, we start by analyzing your physical security program and describe creative, pragmatic and responsible efficiencies. We review the delivery of your current services, costs, requirements, value to your business and recommend how to optimize your programmaximizing value without negatively impacting your security risk profile. The data we collect enables us to discuss program adjustments - finding a medium between human and technology resources to balance risk and cost, eliminating waste and achieving efficiency.
Most recently, G4S worked with a licensed producer (LP) to create a security plan for their new outdoor grow operation as they prepare for the legalization of extracts and edible cannabis. Through mutual discussions between G4S and the LP, we were able to better understand their perimeter monitoring concerns and were able to integrate a self-sufficient and remote video monitoring solution in geographically difficult areas of their property. The solution was versatile and temporary for the summer months. It also served as a means of attestation when reporting to Health Canada directly from G4S’s monitoring centre.
Retailers and producers from across Canada have trusted G4S with securing their product and facilities. We evolve with you, adapting the capacity of your security program to align with the demands of your business. We are your physical security experts and a one-stop shop when it comes to security. Our aim is to be a trusted advisor that is serious about your success and delivering programs of value.
Contact us to discover the power of a partnership with the world’s leading security solutions company and make us a part of your growth plans.
At G4S we approach security differently. We listen first and work with you to design a program around what is most important, becoming a partner in the process. We’re serious about trust. We’re not afraid to think creatively, work collaboratively, and always aim to produce programs of value .
Cannabis is one of the fastest growing industries in Canada.
Since the legalization of recreational cannabis in October of 2018, the market has ignited, and Canada has become home to market-leading companies who are seizing the opportunity to become advocates for the global conversation around cannabis legalization and its medicinal benefits.
For those of us in the security industry, who have spent decades immersed in becoming experts on security best practices, the cannabis industry presents interesting new challenges. Cannabis is a high-value, perishable product that is carefully-regulated by the Cannabis Act, which governs the production, and use of both medical and recreational cannabis. There is no doubt that the Canadian powerhouses of the soon-to-be global cannabis market need reliable security services that align with the Cannabis Act to protect their facilities and their products from seed to sale.
while understanding the challenges associated with this emerging industry. 3 Sixty Secure has developed a range of services that ensure the highest standard of security for our clients. Our fleet of over 150 armoured / unarmoured vehicles are equipped with temperature-controlled cargo space, GPS tracking and GEO fencing capabilities and are monitored by our in-house operational centre 24 hours a day, 365 days a year. Our drivers operate under robust check-in protocols and a chain-of-signature process that removes uncertainty when cargo changes hands, and all secure transport cargo is protected with cannabis-specific cargo insurance. Another service that our clients appreciate is the ability to transport cannabis by air. 3 Sixty Secure is able to provide secure air transport to clients to expedite their delivery, and is the largest mover of cannabis by air in Canada.
One of the largest security challenges the cannabis market faces is in transport. Moving product between facilities during production, and later to market for customer access, is a logistical challenge that requires an in-depth understanding of the needs of the client. When I founded 3 Sixty Secure in 2013, I was interested in creating a full-service security company that could service a variety of industries, from mining to cannabis and everything in between. To do this, I have hired a team of highly-experienced experts in security with specialized knowledge, and we now serve some of Canada’s largest cannabis clients, such as Canopy Growth and 48North. 3 Sixty now transports over $250 million of product every month.
Securely transporting cannabis requires focused and flexible services that both meet the needs of the individual client
It is this ability to provide a full-range of flexible services that is allowing 3 Sixty to change the secure transport scene for large cannabis clients. As Canada continues to explore and expand the cannabis market, the security industry needs companies that are ready to innovate, adapt and support this changing landscape.
3 Sixty Secure is a full-service security company driven by a relentless pursuit of excellence. Our industry knowledge and experience spans cannabis, mining, oil & gas, non-core policing and critical infrastructure. We deliver focused and flexible services, including security and licensing consultation, physical security, secure transport, financial security solutions, remote monitoring and secure storage. info@3sixtysecure.com 1-866-360-3360
Trusted to securely transpor t over $250 million of asset s ever y month.
A R MOUR ED / NON -A R MOUR ED A ND A R MED / UN A R MED CA PAB ILITIES
ROBUS T CH AIN - OFSIGN AT UR E PROCESSES
ENSUR ES ACCOUN TAB IL IT Y A N D T R A NSPA R EN CY
E X TENSIVE CA NN A B IS CA RGO LIA B ILIT Y
INSUR A NCE
PROVID ES SC A L A B L E COVER AGE , R EG A R DL ESS O F LOA D SIZE A MB IENT TEMPER AT UR ECONTROLL ED CA RGO SPACE
ACK ING & GEOFENCING TECHNOLOGY
AIR TR A NSPORT OP TIONS WIT H B IO T H ER M A L PACK AGIN G FO R CLO N ES
2 4 / 7/ 365 OPER ATIONA L COMMA ND CENTR E PROVID ES CO NS TA N T M O NITO R IN G
CHECK- IN PROTOCOL S FOR A L L WORK ING S TA FF
Canadian Security magazine recently collaborated with three other Annex Business Media publications (Grow Opportunity, Greenhouse Canada, Canadian Packaging) to present a day of cannabis content with a security flavour.
Grower Day, held June 18-19 in St. Catharines, Ont., featured seminars and exhibits with the licensed producer in mind.
Security content included a keynote address from noted expert David Hyde, president of 3 Sixty Secure, a cybersecurity
seminar provided by Robert Beggs, CEO of Digital Defence, and a presentation from ULC‘s engineering manager Alan Cavers regarding the organization’s new S4400 safety standard for cannabis production.
In addition, case study presentations were provided by Grower Day sponsor companies Senstar, G4S and Commissionaires. The event was also supported by security service providers GardaWorld, ADT Canada, A.S. Security, and Stanley Security.
DDavid Hyde,
avid Hyde has worked in professional security for decades, but when the legalization of cannabis became a potential reality for Canadians, he saw an opportunity to apply his skills to an emerging and idiosyncratic market.
The learning curve was steep, and not always steady, says Hyde, but he persevered and is now recognized as a leading expert. Hyde recent joined 3 Sixty Secure, a major provider of security services to the cannabis industry, as the company’s president. Hyde was also a featured speaker on Day 2 of Grower Day, which was held June 19 in St. Catharines, Ont. Canadian Security recently sat down with Hyde to get a sense of how the marijuana market is shaping up.
Canadian Security: How has the market changed since the legalization of recreational cannabis last year?
David Hyde: We’ve learned that we have a nascent industry with nascent infrastructure and it’s been a challenge. We now have 159 total licensed parties and counting, which is a lot higher than ever before. A lot more cannabis is being moved around roads in Canada than has ever happened before, so there has been a lot of supply expansion — the production of cannabis has increased, so the security needs really coalesce around that. There’s increased risks as we have more facilities, more retail locations, more cannabis transportation and movement. This expands the considerations for the licensed entities who need to secure that product and for us as a security and risk management company, how we navigate this increased risk landscape, where there’s a lot more moving parts. There’s new licence categories for new licensed producers
that have new considerations for both security and risk.
CS: What are the biggest challenges for the security providers who are serving this market?
DH: The biggest challenge, I would suggest, in terms of being able to capitalize on the industry’s trajectory and have a value proposition in the area of security, is grasping the context — both the regulatory context and the business context. The cannabis sector is very unique. It doesn’t fit neatly into other paradigms [like] pharmaceutical, alcohol, tobacco. You can pick a variety of things that might be comparable and they really don’t fit. You can’t just show your wares and start selling things. You need to understand the regulations and the challenges that the licence holders are facing in their everyday businesses.
CS: When did you first become aware of the security opportunity in the cannabis market?
DH: It’s quite ironic, because when I started in my consulting business in 2010, after 20 years with Cadillac Fairview, my marketing was going on TV and commenting on national security stories. I was on the TV, I think it was CBC, one night, and the CEO of one of the very first cannabis producers in Canada watched that interview and called me. He said, I heard you on TV, you sound like you know what you’re talking about… have you heard about the cannabis security regulations? I said, no I haven’t. This is 2013… right at the very beginning.
I thought this is going to be really big, and if I take the time to become a subject matter expert in this area and do
whatever it takes to get there, I think it’s going to pay dividends. It wasn’t mapped out, and it’s taken a windy, successful road. [We’ve] captured quite a lot of the market when it comes to providing strategic advisory services, consulting services — and now with 3 Sixty branching out, providing guarding, integration and secure transport service.
CS: How are security professionals reacting to the legalization of cannabis?
DH: It’s been a bit of a new paradigm for security directors who need to add that to the arsenal of considerations for them, and how to navigate that from a security perspective. Also, my phone rings a lot when a new security director from outside of cannabis comes in. As these companies grow, they’re hiring directors of security. They have a significant asset protection consideration. These folks need a head of security. We help them and sometimes are that contract head of security, but they hire in-house security as well. I know some of these people from my previous life. I’ve suddenly become really popular. [They say] “Help me understand this cannabis thing.” It’s such a learning curve to go from other industries into this one.
CS: What is the size of the opportunity for the security industry in cannabis?
DH: The opportunity is global. When you look at all of the countries right now that are either legalizing cannabis — there are several countries in addition to Canada — or bringing in medical cannabis — Australia, Jamaica, Germany — in all of these places, a very high bar is put on security, and some would argue too high a bar. We all know, from a security paradigm, that when cannabis is processed to its deliverable state, it ticks all the boxes to be a hot product; one that criminals would be interested in and could be available on the black market in a very anonymous, quiet way. That’s one the reasons why the bar will always be very, very high. I believe the market is very large and the opportunity is great.
