In an increasingly complex world, governments face threats to national security that are more severe and difficult to monitor, detect, and respond to than ever before. However, these risks present opportunities for public-sector agencies to address them in partnership with the private sector. By doing so, governments can benefit from emerging technologies and deeper data to continue keeping their countries and citizens safe. 

This article explores 10 ways public-private partnerships (PPPs) can offer governments a strategic edge when it comes to risk management and improving national security:
 

1. Technology and innovation 

The private sector often leads in technological innovation due to competitive pressures and the need for profitability. Its rapid advancements — especially in artificial intelligence and machine learning — are invaluable to national security agencies. The sector has also developed automated methods for collecting and processing vast amounts of data, with powerful analytics tools to aid fast decision-making. Harnessing these innovations can help agencies stay ahead of threats and dedicate time to robust risk mitigation strategies. 

"With 80% of crimes having a digital component, law enforcement and the judiciary need swift access to digital leads and evidence. They also need to use modern technology and be equipped with tools and skills to keep up with modern crime modi operandi."

— European Commission, 2021 
 

2. Information sharing

Information is essential to security. A collaborative approach broadens the scope of intelligence gathering and allows government agencies to understand threats on a deeper level, leading to better readiness and responsiveness. Financial Intelligence Units in Europe are working toward better intelligence sharing, as the 2024 EU Anti-Money Laundering package requires. [1] Similarly, the UK's National Crime Agency has partnered with seven banks to share data, demonstrating steps toward closing the intelligence gap between public and private sectors. [2] In the United States, defense, intelligence, and law enforcement agencies are also building partnerships to share information more effectively. [3]

One other successful initiative is Collaborative Sharing of Money Laundering/Terrorism Financing Information & Cases, better known as COSMIC, which was developed by the Monetary Authority of Singapore and six major banks. [4] COSMIC is a digital platform that allows financial institutions (FIs) to share customer information to fight money laundering, terrorism financing, and proliferation financing. This system allows sharing based on clear indicators of suspicious behavior while protecting legitimate customers' interests. FIs must follow strict policies to keep shared information confidential, proving that it's possible to share crucial intelligence without compromising customer privacy.

3. Cybersecurity 

In the digital age, cybersecurity is a shared concern. While the risks remain high for infrastructure attacks and financial stability threats, even organizations with robust security measures are not immune to the domino effect of supply chain vulnerabilities.

The three ways a supplier can expose you to cyber risks are:

• Data breach (the most common problem): a cyberattack against a supplier that could expose sensitive data
• System breach (uncommon but very problematic): a cyberattack on a service provider that has access to your systems that can allow cybercriminals to gain access to confidential and sensitive information
• Supplier breach: cyberattacks on a specific supplier that can cause them to go offline
   

Partnering with the private sector for solutions such as cybersecurity risk scores and analytics provides frontline offensive and defensive visibility to help governments understand complex and possibly threatening environments and detect potential issues in their supply chains.
 

4. Counterterrorism

PPPs bring together diverse expertise and resources to develop more effective methods for disrupting terrorists and national crime networks.  Working together improves their ability to detect complex organizational entities and the financing behind groups operating to harm national security. 

A paper by the Wolfsberg Group on enhancing effectiveness through collaboration [5] underscores the importance of data sharing. It points out how FIs could aid authorities by providing data on possible terrorism financing risks. However, concerns about the legal frameworks for data sharing and the absence of feedback on the information's value or what areas to focus on often impede this process. Evolving regulations and a shift toward more openness and two-way communication while upholding strict privacy protections represents a strategic shift. This approach could accelerate the creation of innovative counterterrorism techniques while ensuring that these initiatives are conscious of privacy and ethically sound.
 

5. Resource optimization

Resource efficiency is vital for national security. Partnerships allow resource sharing, avoiding duplication and ensuring that each sector can play to its strengths. Private companies are often able to operate with increased efficiency and agility, facing less financial scrutiny than the public sector. By relying on private enterprises’ skills and systems, governments can deliver solutions more quickly and effectively, leading to better outcomes in times of emergency or during regular operations. Governments frequently face budget pressures and resource shortages; working with the private sector enables them to access external resources, easing the strain on public finances while still achieving high-quality results.
 

6. Risk management

Managing security risks is a complex task that benefits from the diverse perspectives and expertise found in both sectors. Together, they can develop detailed strategies to mitigate potential threats. For example, criminals tend to employ similar methods to evade detection, including relying on common enablers, using similar trafficking routes, and misusing legal entities to legitimize illicit activities. Understanding these criminals’ methods is crucial. By analyzing common evasion tactics, both public and private sectors can develop more effective risk management strategies to detect and prevent illicit activities.
 

7. Specialized expertise

The private sector often possesses specialized knowledge that national security agencies can take advantage of to enhance operations and decision-making processes. As previously mentioned, government agencies can face limitations in rapidly evolving fields such as cybersecurity, artificial intelligence, and data analytics, where private-sector entities frequently lead in innovation and technical proficiency. Engaging with private firms allows national security agencies to make use of proprietary knowledge and specialized skills that may not be readily available within the public sector. This collaboration can enhance threat detection and response capabilities, ensuring that national security measures are both current and robust.
 

8. Economic stability

PPPs can play a crucial role in bolstering economic stability, which in turn supports national security. Collaboration between government entities and private businesses drives innovation, enhances infrastructure, and creates jobs. This synergy helps diversify the economy, making it more resilient to shocks and disruptions. Public-private partnerships can also streamline resources and expertise, leading to more efficient project implementation and cost savings. These benefits collectively contribute to a stable and thriving economy, which is fundamental to maintaining a secure and prosperous nation.
 

9. Global security initiatives and influencing future legislation

National security agencies and private enterprises can work together on global security initiatives to promote peace and stability beyond their own borders. PPPs can provide valuable insight for policymaking, potentially shaping future legislation in various areas, including energy security. For example, the Protecting Europe's Energy Security Act (PEESA) that the US enacted before the Russia-Ukraine war sought to prevent coercive use of energy resources against Europe. Although PPPs could not have directly enacted PEESA, they can contribute to efforts supporting the legislation’s broader energy security goals by exploring alternative energy sources to reduce supply disruptions.
 

10. Adaptability to emerging threats

The private sector’s adaptability to change is beneficial for national security agencies in quickly responding to new threats. Criminals have rapidly embraced the digital world, often outpacing authorities who may struggle with limited funding and resources. Their ability to work across jurisdictions and quickly turn challenges to their advantage, as seen in recent geopolitical crises, highlights the need for a strategic shift in focus toward criminal behavior rather than specific types of crime. By taking advantage of private-sector capabilities, national security agencies can access the data and tools to monitor patterns, become more adaptable, and be better equipped to address these evolving threats.

As we delve deeper into each of these reasons, it becomes clear that the alliance between national security agencies and the private sector is not just a matter of convenience but a strategic imperative that strengthens the very fabric of a nation's security. Through shared knowledge, resources, and innovation, these partnerships pave the way for a safer, more secure future.
 

1. htps://thefinancialcrimenews.com/eu-article-75-pan-eu-information-sharing-is-coming-but-will-it-be-enough/
2. https://www.nationalcrimeagency.gov.uk/news/ground-breaking-public-private-partnership-launched-to-identify-criminality-using-banking-data
3. https://www.dni.gov/files/ODNI/documents/National_Intelligence_Strategy_2023.pdf
4. https://www.mas.gov.sg/news/media-releases/2024/mas-launches-cosmic-platform
5. https://db.wolfsberg-group.org/assets/f789b205-c409-4ef0-8217-c47a4990ba9d/Wolfsberg%20Effectiveness%20Through%20Collaboration.pdf