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Talent Shortage: A Top Risk Facing Businesses

No, it’s not the credit crisis or the looming threat of cyber crime or business continuity during a natural disaster or the overall state of the national economy that keeps American business owners awake at night. It is, according to most, the shortage of talent and skills.

This may seem strange, seeing as were are still experiencing record unemployment numbers — meaning the pool of seemingly qualified employees should be vast to say the least. But in fact, the 2011 Lloyd’s Risk Index found that talent and skills shortage ranked as the number two risk facing American business leaders — shooting up from the number 22 spot in 2009.

“These findings show that talent is now firmly part of the risk lexicon — high levels of unemployment have boosted the quantity of candidates, but employers are still wrestling with the quality. Our own Global Talent Index echoed these concerns and highlighted two factors underscoring this risk: population demographics and skills gaps,” said Kevin Kelly, CEO of Heidrick & Struggles the leadership advisory firm providing executive search and leadership consulting services worldwide.

Are business leaders prepared to handle not only the number two risk on the list, but all 50 in the index? Apparently they are. Respondents said they are more than adequately prepared for 48 out of the 50 risks listed. That is in comparison to 2009, when leaders said they were not adequately prepared for eight of the 40 listed risks. Leaders cited “boosting talent retention” as one of the most overall effective risk management actions taken over the last three years, showing how eager businesses are to retain the staff they have.

Speaking of risk management, when respondents were asked to identify the most effective risk management action their organization had taken over the last three years, they cited the introduction of formal risk management strategies and systems, stating that “risk management is now one of the most important roles in the business community.”

Finally.

It may have taken the collapse of the U.S. housing market, a worldwide recession and the continuous uncovering of massive fraud to push the idea of risk management to the forefront of global business programs, but at least the discipline is now moving to where it belongs.

And it is apparently now focused on retaining the talent and skills that are greatly needed in a business world full of continuously evolving risks.

The CLM Women’s Forum: Tackling Social Media

Yesterday was the 2nd annual CLM Women’s Forum. Held at the Walter Reade Theatre in Lincoln Center, the event drew more than 200 women from the fields of law, risk management and insurance. One of the engaging panel discussions was on the topic of social media and social networking. Leading this discussion was Holly Maust, president of Interactive Swim, a social media strategy company. Holly shared with us her wisdom on the topic, including:

  • Companies should harness the power of LinkedIn and Twitter — something not all companies have done, and those that do use these platforms usually aren’t using them to the best of their ability.
  • LinkedIn is the most important social media platform out there, but companies and entrepreneurs must learn to market themselves on LinkedIn without being “spammy.”
  • LinkedIn “recommendations” are the new job references. Embrace them.
  • Leverage yourself as a leader with your brand using Twitter, following three steps:
  1. Listen — where are people talking about your product?
  2. Engage — social media is a two-way conversation.
  3. Learn — stay agile and flexible by staying on top of new social media.
  • Do it the right way and do it ethically.

On the (somewhat) other side of the spectrum, Lori Seidenberg, vice president of enterprise risk management at Centerline Capital Group, sounded off against the use of social media in the workplace, saying her employer has considered restricting access to social media sites. And however much it hurts to hear, she has a few good points, including:

  • Social media hurts workplace productivity.
  • Engaging in social media and the various quizzes, games, applications, etc., that come along with some sites, breeds spam, some of which passes through a company’s server potentially causing cyber risks.
  • If you have something on your screen that another employee finds offensive, they can file a lawsuit.

In closing, Seidenberg stated that social media litigation is the next big wave.

Scary, and, unfortunately, true.

 

October Issue of Risk Management Now Online

The October issue of Risk Management magazine is now online. The cover story, “Immovable Objects,” focuses on how complacent boards of directors fear change, often retaining CEOs past the expiration date of their effectiveness. We also cover food safety in a feature by John Turner, North America product recall manager at XL Insurance. And, as is tradition with our October issue, we highlight cyberrisk, this time in a four-part feature covering cyberattacks and critical infrastructure, the military and its vulnerability to hacking, the cost of protection and a guide to selecting cyber insurance.

Our columns explore topics such as:

If you enjoy what you seen online, you can subscribe to the print edition to enjoy even more content.

Please let us know what you think in the comments below. And stay tuned to the blog for even more coverage in the future. Lastly, you can follow the magazine on Twitter“like” us on Facebook and join our LinkedIn group.

Happy Cybersecurity Awareness Month

October is national cybersecurity awareness month. Here at Risk Management magazine, we celebrated by running an eight-page feature on the topic in our latest issue. Over at the Department of Homeland Security, they have launched an online campaign to educate the public on the threat and ways to mitigate the threat.

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Atop the webpage for its “Stop. Think. Connect” campaign is the following quote from the president.

“Cybersecurity is not an end unto itself; it is instead an obligation that our governments and societies must take on willingly, to ensure that innovation continues to flourish, drive markets, and improve lives.”

— President Barack Obama

And they also include the handy chart below on ways people can protect themselves.

Increasingly, the government is taking this risk seriously.

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I heard a presentation by Richard Clarke this summer and he warned that the United States remains woefully underprepared for cyberthreats. That’s probably true, but Washington officials are ramping up their efforts with reforms like the National Cyber Command.

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And while a web campaign isn’t going to protect the nation against Chinese hackers, Iranian worm attacks or North Korean cyberattacks, it will hopefully help a few people increase their personal safely, even if ever so slightly.

And while that isn’t the major leap forward the nation needs to stay protected in a world in which the digital threat gets scarier everyday, increasing the security of one person at a time is better than nothing.