The cannabis industry is experiencing exponential growth as more regions legalize its use for both medicinal and recreational purposes. This expanding market presents unique opportunities but also comes with unique challenges in the realms of security and compliance.
Compliance and security in the cannabis industry, while closely related, address different aspects of operational integrity. Compliance focuses on adhering to local and state regulations to ensure legal and safe production and distribution, whereas security involves protecting the physical and digital assets of the business (including inventory, cash and personnel) from theft, diversion and cyber threats.
Gone are the days of carrying backpacks full of cash to pay licensing fees and other obligations (yes, that really happened), but safety concerns surrounding cash transactions, product transport, and foremost, the safety of staff, remain paramount.
- High-value inventory: Cannabis products, both in raw and processed forms, are highly valuable, not just monetarily, but also from a possession perspective. Carry limits are in place so that no one individual has access or control of large amounts of inventory with the intent to sell to minors or undeveloped markets. This makes them attractive targets for theft and diversion to be distributed in what is called the "gray" market.
- Cash-intensive operations: Most operators have access to a bank of some sort for their business, but most transactions with consumers take place with cash. This means that security measures must be in place for handling and storing large amounts of cash.