Category Archives: Business

Проблемы с доступом больше не помеха. Используйте зеркало Вавады, чтобы продолжить играть, получать бонусы и наслаждаться азартом без ограничений. LeapWallet is a secure digital wallet that enables easy management of cryptocurrencies. With features like fast transactions and user-friendly interface, it's perfect for both beginners and experts. Check it out at leapwallet.lu.

4 Steps to Help Organizations Embrace Risk from Emerging Technology

Posted on by

As companies continue to navigate the changing work environment brought on by the pandemic, it has become clear that business leaders will need to get comfortable revising and adapting their strategies to deal with disruption brought on from new technologies and new regulation. As risk management professionals, these rapid changes have made our job more important than ever to our organizations.

online pharmacy sildalis with best prices today in the USA

Yet the majority of our organizations—particularly in C-suites—remain far from giving risk management experts the seat at the table they need to effectively safeguard against enterprise threats, digital or otherwise.

Data from PwC’s Global Risk Survey 2022 shows that executives are starting to recognize these risks: 79% of executives report that they view the breakneck speed of digital transformation as a significant risk management challenge. Moreover, this renewed focus is translating into increased funding, as 65% of organizations are increasing their spending on risk management technology and 56% said they planned to invest in risk culture and behavioral risk in 2022.

online pharmacy mobic with best prices today in the USA

Unfortunately, the survey also found that too many organizations are treating the risk function as an add-on or incorporating risk leaders into strategic conversations too late. Only 39% of business leaders reported adding risk professionals to decision-making processes early, which should be an essential step for executives seeking to minimize risk from the outset. On a broader scale, executives seemed to lack confidence in risk managers, with only 47% of respondents saying they feel “very confident” in their risk function’s ability to build a more risk-aware culture, a key element of any successful risk-focused company.

Particularly as companies invest in emerging technologies, business leaders need to listen more to their risk and compliance functions and integrate them into conversations about how those technologies will be implemented. Artificial intelligence is a great example: when companies rush to implement systems to accelerate efficiency and analyze trends, they risk creating disproportionate bias and violating personal privacy through data sourcing. Risk professionals need to be at the table from beginning to end to make sure that an evolving regulatory environment and other pitfalls are fully accounted for in the organization’s implementation process.

While investment in risk management technology is helpful, it is insufficient without making structural changes to the organization to prioritize the risk function company-wide. Particularly as companies consider adopting emerging technologies, the following steps should be considered not just by risk management professionals, but across the C-suite:

  1. Identify, categorize, and prioritize technology risks across the company. This should be done on a regular basis by a dedicated risk management team, married with the best tools available, with findings routinely reported back to senior leaders. Companies are on the right track here: 65% plan to increase their technology spend this year across data analytics and process automation to support detection and monitoring of risks. This initial step will lay the framework for the establishment of cyber threat intelligence, systems monitoring, and incident response protocols.
  2. Adapt IT governance to the emerging technologies being adopted. Risk professionals should work with IT teams and company leadership to create governance structures that integrate seamlessly with corporate strategy, allowing for alignment of day-to-day operations, effective decision-making, a framework for best practices, and promotion of investments that enhance business objectives.
  3. Update leadership often on the emerging tech regulatory landscape. Whether across data privacy rules, cyber reporting requirements, or other complex technology challenges, a robust compliance program should keep leaders across the company updated as new technologies are implemented. Otherwise, companies risk run-ins with legal authorities and the erosion of trust from their clients and customers.
    online pharmacy cymbalta with best prices today in the USA

  4. Set expectations with leadership that not all risks are one and the same. Understanding the context around each piece of technology will become imperative to understanding its specific risks and the appropriate response strategy, including the maturity and complexity of the business processes to determine true risk to the company. Inherent in this case-by-case evaluation is an understanding of the company’s risk appetite and criteria for acceptable level of risk.

When adopted purposefully, emerging technologies can make companies more efficient, more profitable, and better stewards for their employees, clients and communities. Risk is often unavoidable for early adopters of emerging technologies, but it can be mitigated if C-suites equip their risk functions with a holistic strategy and a voice in key business decisions. As C-suites and organizations seek to adapt to a changing world, their success will hinge on the extent to which risk management is incorporated into their strategies.

Inflation Considerations for Risk Managers and Insurance Buyers

Posted on by

According to Beazley’s recent Risk & Resilience Geopolitical Report, inflation is a key area of concern for business leaders and they expect economic uncertainty to remain high through to the end of this year. High inflation impacts multiple aspects of corporate decision making, from the changing value of stock to rising employee wages and cost of borrowing. It is interesting to note that worries about inflation differ internationally; in the US, 42% of companies rated it their biggest concern, while only 33% of business leaders in the UK had it at the top of their list. Even more striking is the lack of perceived resilience to inflationary pressure, with 65% of business leaders in the U.S. and 55% globally feeling unprepared to meet the challenge.

US business leaders’ concerns about the impending impacts of inflation are justified, as financial market volatility and losses are currently driving the greatest run-up in prices that the U.S. has seen in four decades. The S&P 500 officially entered a bear market and is down more than 20% since the beginning of the year, and the prevailing sentiment in the U.S. is an expectation that inflation is only going to get worse. U.S. retail sales fell in May as supply chain challenges drove a decrease in major purchases like vehicles, and record high gas prices pulled spending away from other goods. The Federal Reserve raised interest rates to try and reduce inflation, but businesses face a long road ahead as rising prices for everything from groceries to housing influence consumers’ buying power and economic confidence for the foreseeable future.

Inflation’s Impact on the Insurance Market

In light of current economic conditions, the directors and officers (D&O) insurance market is now facing several notable inflationary risks. Inflation and supply chain constraints led to higher costs of goods sold, including both raw materials and transportation/freight costs. If a company cannot or is not willing to pass the price on to the consumer, the margins will be impacted, leading to softer financial results. At the same time, as consumer prices increase due to inflation, companies (especially those in the retail and hospitality industries) may face a market with significantly less discretionary spending, leading to lower volume sales or lower sales overall. 

Amid these challenges, there are several signs pointing to a potential U.S. and, likely, global recession. While unemployment rates have been improving since the all-time highs during the peak of COVID, analysts warn of future mass layoffs. With high unemployment and higher costs, this also poses a risk to employment practices liability (EPL) insurers. Workers may look to recover lost wages through whatever means available, including bringing suits against their employer. A strong EPL policy and relationship with insurance carrier and broker can help during this time where unemployment may swing back the other way. 

Wage and labor inflation also remain a challenge in a tight (though softening) labor market as companies either cannot fully staff their businesses or are spending more to attract and retain talent. Both impact the bottom line. The insurance industry has already seen several supply chain and inflation-driven Security Class Action claims. Various companies have made claims as a result of challenged financials in the wake of strong inflationary and supply chain/labor impact. These were driven by everything from a shortage of staff to deal with consumer demand to slowed production as a result of supply chain constraints, and these cases are just the beginning.

In other lines of business, as inflation continues to rise and products become harder to get, we can expect to see increased crime activity, with higher value attributed to stolen goods due to shortages and inflation encouraging more employee theft. In the cyber market, larger ransom payouts are becoming regular and the costs to buy insurance, negotiate ransomware, and rebuild after a breach are all rising, but the need for more experts is also likely to present challenges as wage inflation rises.

Claims teams are seeing social inflation across most lines of business today, most prominently in bodily injury, wrongful death, EPL, and sexual abuse/molestation liability. This trend is driven largely by the plaintiff’s bar, which has been increasingly emboldened to tap into consumer unrest about everything that is happening in the world today. Jurors’ distrust of larger corporations and their empathy for impacted individuals are increasingly factors that the plaintiff’s bar is leveraging to return higher settlements.  

Increasing Complexity of Corporate Insurance Buying

The conflict in Ukraine was already an inflection point for the insurance markets, with hardening rates and capacity changes anticipated in some specific classes as a result. Now, the wider impact of inflationary pressure is likely to push costs (and, in turn, premiums) higher across all classes. This is bad news for insurers, and ultimately even worse news for the business owners who are insurance buyers.

Inflation brings uncertainty and demonstrates the increasing criticality of insurance in certain key areas. For those trading internationally, trade credit insurance becomes essential. With rising business pressure, D&O and EPL insurance-related risks also rise. Business interruption also becomes more likely in a world where energy supply and supply chains are both less certain. As pricing goes up, whether due to supply chain constraints or wage increases, this cannot help but impact companies’ overall performance, leaving them open to potential litigation from shareholders. In a land of rising costs and rising risks, many business owners may consider protecting their business operations as a continued priority, no matter what happens to cost.

Key Action Steps for Risk Managers

One of the most important things that risk managers can be doing in this landscape is proactively seeking to understand what is happening in the world. This includes considering not only the risks that are present, but also what is happening as a result of the inflation and social inflation trends we are seeing—namely higher costs and more pressure from the plaintiff’s bar.

With this understanding in hand, risk managers are then well-advised to call upon trusted experts, including brokers, insurance partners and third-party vendors who are available to test systems and table-top strategies. The priority should always be to find the best vendors and build long-standing relationships with them. This is the time to leverage that trust.

It is essential to be proactive when it comes to risk management. Do not wait for a crisis to come in the door and then behave reactively. Rather, prepare yourself with education and resources and then, after identifying risks unique to your business, proactively seek to mitigate them.

As inflationary risks look to be with us for the immediate future, it is critical for organizations to have a plan. Use your enterprise risk management strategies to develop responses to potential economic and geopolitical events. Communicate regularly and conservatively with shareholders. Consider diversifying your supply chain, as working with different suppliers can add to the confidence level of meeting demand levels. It is also important for businesses to demonstrate empathy for the suffering and hardships that employees and customers may be experiencing.

Many of today’s senior business leadership have not dealt with inflation, unlike the previous generation of leaders who endured double-digit inflation in the 1970s and early 1980s. Use data and rely on the experience of management that survived the Great Recession of 2008 to 2011 to help navigate these new concerns. And of course, work with your carrier partner to ensure that you are properly covered for the road ahead. If COVID-19 has taught us anything, it is that companies must be prepared and plan for the unexpected. This adage will continue to prove true as we weather the coming period of inflation-driven challenges.

How to Manage Supplier Risk and Performance in an Uncertain Global Economy

Posted on by

Essentially every company that manufactures goods today depends on other companies to supply the raw or value-added materials that go into their finished products. Most companies recognize that good supplier relationships are more than simply arm’s length transactions between opposing parties. A better way of looking at those relationships is as partnerships—albeit ones that require management and alignment of objectives first and foremost, but ultimately mutually beneficial relationships. The job of procurement is to ensure performance is as promised, risk is low and business objectives are being met through collaboration. When suppliers are treated as partners, they can be a huge asset in times of trouble. Especially today, with some industries moving from a buyer’s market to a seller’s market, many suppliers can have their pick of customers, especially if some are easier to do business with, foster collaboration, listen to new innovative ideas and, most importantly, pay on time.

Well before the pandemic, leading organizations in every industry have that strong supplier relationships and a reliable supply chain are paramount. It is critical to have full visibility across all your suppliers and knowing everything about them matters, because this may be the difference between meeting customer demand and falling short of it. Suppliers are a source of growth, innovation and efficiency, but if they are not managed holistically, they can be a source of risk, poor performance and noncompliance.

Enterprise technologies are available to holistically manage your suppliers throughout their lifecycle and incorporate all the necessary elements around supplier information-gathering, collaboration, and risk and performance management. Platforms with these capabilities can help risk professionals to: improve visibility across the supply chain (including sub-tiers of suppliers); ensure compliance with regulatory requirements (particularly new ESG regulations around carbon emissions, cybersecurity or diversity reporting); assess supplier viability and risk profiles; and evaluate performance and target improvement areas. Implementing such a system requires considerable advance planning and strategic thought. But following a deliberate series of steps can help you structure a solid program:

  1. Figure out what you want to accomplish with your supplier management program. 
  2. Secure executive buy-in from procurement, supply chain and IT leadership.
  3. Structure a plan to gather complete information about all your suppliers.
  4. Segment your suppliers into relevant groups, identifying the standards and processes each group is required to meet, and potentially establishing processes for each segment.
  5. Communicate goals, objectives and policies to your suppliers, whether it is around a code of ethics or more specific goals per segment.
  6. Create a process to continuously gather information about suppliers using surveys or a supplier portal, including topics like information security practices, certificates, financial updates and generic information updates.
  7. Establish an onboarding process for new suppliers and use third-party data sources to assess them against requirements and goals.
  8. Implement a monitoring program to regularly track key aspects of the supplier’s risk and performance profile. 

Your criteria can evolve over time, so regular reassessments of those criteria and related mitigation measures are always appropriate, but having them well-defined at the start will be a tremendous help in establishing clear expectations. As in any relationship, clarity is key to reducing the friction that can result from misunderstandings.

At the same time, however, issues directly affecting the supplier are only part of a larger risk profile. As we have seen during the pandemic, the transportation of supplies from a vendor’s overseas site to your own facility is also fraught with risks. For example, there are shortages of active piers, forcing ships to anchor for days or weeks before they can unload. Additionally, higher levels of theft and shortages of truck drivers, shipping containers, warehouse space, cargo pallets and inspection officials can all compound delivery delays. Being aware of issues within the supply chain, having visibility of your suppliers’ suppliers, and understanding relationships and dependencies are all key to be able to respond adequately.

4 Strategies to More Successfully Manage Remote Teams

Posted on by

Since the 1990s, we have seen major industries get disrupted by new technologies and innovation. The Internet and tech commoditization, increasing consumer demands, and rising competitive rivalry have all forced businesses to adapt and evolve. Managing disruption has made the overall business landscape much faster, uncertain and, at times, chaotic.

With the pandemic, we have had to adapt again to remote or hybrid work arrangements. While it has many perks, working remotely brings with it a new set of challenges that managers continually need to navigate. First, it is harder to read your team’s energy when you are not in the same office. Second, the number of meetings tends to increase in remote environments, which tends to lead to lower productivity. Third, not being in the same room sometimes reduces the speed of execution, resulting in bottlenecks and miscommunication.

Although working remotely comes with its challenges, here are four strategies that leaders can implement to better manage remote or hybrid teams and disruptive environments:

1. Build a Team for Adaptability

The most important capability to navigate a world of disruption is adaptability. Teams that are built with an emphasis on adaptability are able to pivot and change direction much faster, and are more likely to solve problems that they have not seen before. These teams are also able to navigate the nature of remote work.

Adaptable team members keep an open mind and may be more inclined to find new ways to collaborate with each other, and it may be easier for them to continuously pivot to changing regulations or rules. In other words, being adaptable allows teams to get the job done whether they are working from the office, a client site, or remotely.

2. Get Buy-In

Before starting on your journey, focus on getting your team to buy into your vision and mission. Show your team why the goals are important, and the prize that awaits everyone on the other side of the journey. Being bought-in makes your team more likely to push through uncertainty and change, especially when things get difficult. This can also reduce the need for constant oversight or micromanagement.

A team that is bought-in also feels more accountability with their work and with each other. This ensures teams are focused on getting results while supporting each other along the way. The resulting sense of investment also helps as burnout continues to be on the rise and the boundaries between work and life continue to get blurred while working from home.

3. Provide a Clear Plan and Establish Milestones

When things get chaotic, it helps to clearly define your roadmap and assign key actions to your team with ownership and accountability. When dispersed and facing uncertainty, direction is what a team needs most. Providing your team a clear action plan not only gets you marching on the same path, but may also make you more productive.

Being clear on your deliverables and establishing concrete milestones can help reduce distractions, making it easier to navigate uncertainty and change. This can also reduce virtual meetings to relevant team members working toward a certain milestone, which could boost overall team productivity and save valuable time. 

4. Celebrate the Small Wins

When you are executing and being pulled in multiple directions, it is tough to take a step back from the nitty gritty day-to-day. Most of the work we do in transformational times does not yield results right away—it takes time. Especially when dispersed across different cities or countries, it is hard to see the progress we have made if we do not make a conscious effort to see the forest, not just the trees. Over time, this can contribute to burnout and lower productivity.

Celebrating the small wins helps your team see the progress they are making every day, and puts things into perspective. It also brings the team together, which is a must when working remotely and are not getting the social interaction that we need.