Category Archives: Reputation Risk

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Risks and Questions Surround 3D Printing Technology

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NEW ORLEANS—One of the most promising new technologies to hit the wider market in recent years, 3D printing is poised to revolutionize manufacturing as we know it. Otherwise known as additive manufacturing, 3D printing allows users to print almost anything they can dream up, including toys, machine parts, clothing, food, and prosthetic (as well as actual) body parts. There even companies that can print a lifesize, 3D model of your unborn fetus using ultrasound scans.

Of course, as with any new technology, there are many risks to consider and just as many unanswered questions about how to address those risks. At an educational session this morning at the RIMS 2015 Annual Conference & Exhibition, Cynthia Slubowski, head o f manufacturing at Zurich, Lisa Cirando, and attorney with Jones Day and Toni Herwaldt, risk manager at Kraft Foods, provided a risk checklist, outlining at the wide range of risks and questions facing those in the 3D printing space and those whose industries will be impacted by this new technology:

Product risk. Since 3D printing changes the traditional manufacturing model, industries will need to determine who owns a 3D printed product and in the event of an accident how will liability be apportioned?

Technology risk. Who owns the software and designs used to create products, particularly when users can make endless customizations?

Operations risk. How will 3D printing impact power supplies (the printers generate a lot of heat during operation), and how will the possible toxicity of ingredients and their byproducts be addressed. In addition, what are the business interruption and transportation risks?

Cybersecurity risk. How do you protect you designs and formulas? How do you prevent counterfeiting?

Environmental risk. How do you address exhaust, housing and disposal issues?

Contract risk. What kind of risk transfer or licensing agreements do you want to have in place?

Insurance risk. Do you have the appropriate coverage and where will it be coming from?

Strategic risk. How do you handle reputation and intellectual property issues? What happens to your product development lifecycle management?

Supply chain risk. Does your supply chain risk increase or decrease?

Market risk. What differentiates your product? What happens to your geographical risk?

Data Protection in the Cloud: Planning for Data Loss and Downtime

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As we brace for another season of tornadoes, hurricanes, forest fires, earthquakes and floods, all businesses should be asking, “Is our data protected should disaster strike?” Or more simply, “What happens if we lose our data?”

Sadly, despite the fact that significant portions of the country are at risk for severe weather and other natural disasters, not all businesses are thinking pragmatically about catastrophic data loss and downtime, which can lead to staggering financial losses and impact productivity, reputation, regulatory compliance, and ultimately the bottom line.

According to a global data protection study released in December, enterprises are losing as much as .

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7 trillion annually through data loss and unplanned downtime. Data loss is up 400% since 2012, and two-thirds of the 3,300 organizations surveyed had experienced data loss in the last 12 months. Researchers found that although a high percentage of organizations had disaster recovery plans in place, surprisingly few had implemented data protection practices and fewer than half employed remote, cloud-based data protection. Seventy-one percent of organizations were not fully confident in their ability to recover after a disruption.

If your business is unprepared for a disaster, then act now to improve your resilience and mitigate risk. Plan for natural catastrophes and man-made disasters alike (such as theft, hardware failure, human error, system failure, computer viruses, power failure and accidental deletion).

Disaster preparedness begins with a business continuity plan. This serves as your playbook for staying in business following a disaster and it enables you to restore operations and communications systematically while helping minimize risk. Ask your IT department to incorporate the steps needed to safeguard your IT infrastructure from disaster, including backup and recovery measures.  In today’s highly-regulated environment, having a secure backup and recovery solution that meets the stringent requirements defined by Sarbanes-Oxley, Gramm-Leach-Bliley, HIPAA, FISMA, PCI, ISO and other regulatory standards is expected.

During this process, develop a clear understanding of where the cloud fits in and how it can help save time, money and resources.

Businesses are increasingly backing up their data and apps in a secure, off-site cloud environment (not in the physical office), because the cloud is faster than other options and typically offers the most protection at the lowest cost.

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Recovery in the cloud requires no travel and no extra hardware, and it offers extreme levels of reliability.

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Should disaster occur, a cloud solution allows the continuously backed up systems to be restored as virtual machines. All of the cloud’s benefits speak to why highly regulated businesses protecting sensitive data are finding that virtualization technologies make it simpler to comply with stringent security and compliance regulations governing electronic storage and access to data.

Here are seven steps to help businesses plan for data loss and downtime:

  1. Identify the risks. List and categorize all natural and man-made threats and their impact on various systems. Ask what would it take to knock out our entire network and how much unplanned downtime can our business sustain?
  2. Inventory IT assets. Which are most critical to maintaining business continuity? What’s our tolerance for loss of those assets? The cost of the response should be balanced against your tolerance for system downtime.
  3. Define goals. In a worst case scenario, how long can our business shut down? Does it need to recover off-site? Define goals in terms of RPO (Recovery Point Objective, “How much data can we lose?”) and RTO (Recovery Time Objective, “How long can we be down?”).
  4. Develop a plan. Include “IT Assets Inventory,” data protection procedures and contingency plans, notification/activation schedules, a list of roles and responsibilities, a list of resource requirements, and details about training provisions. Good plans include maintenance and backup/recovery testing schedules.
  5. Understand the cloud’s benefits. Virtualization technologies make backup and disaster recovery vastly faster, cheaper and easier. The combination of the cloud and the right backup and disaster recovery solution allows for continuous data protection (so the backups always run 24/7/365) as well as consistent compliance and security.
  6. Implement the plan. If executives understand clearly the consequences of system disruptions, you will win their support and funding for contingency policies.
  7. Test the plan. Continuous testing and plan updating helps ensure business survival.

Security Technology: Reducing Risk for Law Enforcement

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Nowhere is the work environment more unpredictable than on the front line. Front line employees, whether they work in customer service or high-level security, are constantly exposed to the biggest element of risk—the human element. Working in the field exposes employees to a variety of unpredictable factors, interacting with the public and operating in different environments, making it difficult to predict risks and properly protect employees from external threats.

This is particularly true in law enforcement and security industries, with “police officer” being named as one of America’s most dangerous jobs. It’s no wonder organizations (both public and private sector) are looking for solutions, especially when considering what is at risk. Obviously, employee safety is of paramount concern to any organization and should always be top priority, but there are other elements to consider. Attacks on employees or property can result in huge legal costs, and without physical evidence, it can be hard to recoup this loss. Businesses must also consider the risk to their public image.

To help fight crime and reduce the risks to their front line workers, many government law enforcement agencies and private security organizations are using technology solutions. These solutions, such as advanced security recordings and tracking devices, can act as deterrents. While providing law enforcement officers with more protection, they also help collect irrefutable evidence to protect the company from a legal perspective.

Personal security cameras

These personal security cameras have been adopted by numerous law enforcement agencies around the world, including the City of Clare Police Department in Michigan. The body-worn cameras are attached to the police officer’s uniform—recording footage and displaying a live feed on their front-facing screen. This works in two ways, by providing reliable video evidence from the officer’s perspective of the crime scene and also acting as a deterrent. This approach of alerting members of the public to the fact that they’re being recorded has been shown to reduce the occurrence of criminal activity.

GPS

While GPS systems have existed for a long time, more and more law enforcement agencies are taking full advantage of their benefits—particularly when it comes to pursuing vehicles. Tested with police departments in Arizona and Florida, GPS ‘darts’ are currently in development to reduce the risk to police officers and the general public posed by high speed traffic pursuits. The darts are fired using compressed air and discreetly attach to the vehicle being chased. This means the officer in pursuit can track the vehicle remotely, without the need to initiate a chase at dangerous speeds.

Drones

Perhaps the most controversial of these technologies, drone surveillance has been a hot topic in recent news. While opposition to their use is primarily in relation to privacy or military usage, for law enforcement they provide an affordable and convenient alternative to police helicopters. These small portable flying police drones are equipped with HD surveillance cameras, providing a birds-eye view of crime scenes or events. This live video feed can be monitored and recorded remotely, allowing officers to survey any danger in the area before making a physical appearance. Like body worn cameras, the video footage can also serve as valuable evidence in court. The future of drone technologies being adopted by police departments remains up in the air, however, as some public opposition looks to restrict their usage.

Gunshot detection

Possibly the most innovative of these technologies, gunfire locators or gunshot detection systems have proven to be extremely valuable in protecting front line workers and increasing response time in high gun crime areas. Already used in many cities throughout the United States, these systems use numerous super sensitive microphones (dispersed through a geographic area and connected to a central processor) to immediately alert police to the exact location, and even direction, of gunshots fired in the area.

While some of these technologies have yet to reach their potential, their benefits suggest it won’t be long before they’re fully integrated into police and security industries—and seeing widespread use around the world. While tracking devices and security cameras are nothing new, their improvement and innovative applications in recent years have made them invaluable. From collecting evidence to improving safety for front line workers, these high-tech security solutions effectively reduce risks faced by organizations operating in the sector.

 

Study Lists Most and Least Resilient Countries

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Businesses are more dependent on their supply chains than ever, with supply chain disruption one of the leading causes of business instability. To thrive, companies need to be resilient, and part of that is their location and the location of suppliers. According to FM Global’s 2015 FM Global Resilience Index, Norway tops the list of resilient countries, with Switzerland in second place.

The study’s purpose is to help companies evaluate and manage their supply chain risk by ranking 130 countries and regions in terms of their business resilience to supply chain disruption. Data is based on: economic strength, risk quality (mostly related to natural hazard exposure and risk management) and supply chain factors (including corruption, infrastructure and local supplier quality).

According to the study:

1. Norway retains its top position in the index from last year, with strong results for economic productivity, control of corruption, political risk and resilience to an oil shock. The country’s management of fire risk offers opportunity to improve still further.

2. Despite its massive oil reserves, Venezuela ranks 130, placing it at the bottom of the index, and reflecting the many challenges South America faces, ranging from economic and political to geological, with its west coast on the Pacific ‘Ring of Fire’.

3. Taiwan has jumped the most in the index – 52 places in the annual ranking to 37; more than any other country. Its rise is due mainly to a substantial improvement in the country’s commitment to risk management, as it relates both to natural hazard risk and fire risk. Given the country’s location at the western edge of the Philippine Sea plate, this is a welcome development.

4. Ukraine, ranked 107, and Kazakhstan, ranked 102, dropped more places this year than any other country; a fall of 31 places each. Unsurprisingly, for Ukraine, the worsening political risk, combined with poorer infrastructure, was to blame. The fall for Kazakhstan this year reflects a poorer commitment to natural hazard risk management in the region.

5. In the European Union (EU), Greece fell from position 54 to 65. The recent victory of the anti-austerity Syriza party almost certainly will usher in a period of greater friction and turbulence with its EU partners.

6. France, ranked 19, trails Germany at 6, the leading EU nation. France has slid down the index in recent years reflecting a rising risk of terrorism – evidenced tragically in Paris – and deteriorating perceptions of both infrastructure and local suppliers. Also exposed to terrorism risk is the United Kingdom, which nevertheless held steady at 20 for the third year running, aided by its relative resistance to oil shocks.

New to the top 10 this year are Qatar, ranked 7, and Finland, ranked 9. Qatar benefits from its macroeconomic stability, efficient goods and labor markets and high degree of security. The country owes its rise of 8 places to a considerable improvement in commitment to fire risk management in the region. Finland’s strengths derive from its innovative capabilities, a product of high public and private investment in research and development, strong links between academia and private sector companies, and an excellent record in education and training, according to the study.

In 10th place is U.S. Region 3, the central region of the United States. While this part of the country is subject to a variety of natural hazards, there is less exposure than states on the east or west coasts of the country. Belgium, ranked 11, and Australia, ranked 14, dropped out of the top 10–barely–and both countries retain high positions in the 2015 index.