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The Leaders of Italy’s Disaster-warning Agency Resign

The head of Italy’s disaster-warning committee, Luciano Maiani, has resigned in protest over the sentencing of seven of the organization’s members for underestimating the risks of a deadly 2009 earthquake. The commission’s vice president, Mauro Rosi, and president emeritus, Giuseppe Zamberletti, also resigned.

The April 2009 earthquake rocked the central Italian town of L’Aquila, killing 309 people and leaving thousands homeless. The seven defendants were members of the country’s Major Risks Committee, which met in L’Aquila March 31, 2009 — six days before the 6.

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3-magnitude quake struck. The seven have been found guilty of manslaughter, accused of providing “inaccurate, incomplete and contradictory” information after small tremors were first felt.

Maiami, one of Italy’s top physicists and a former head of the top partical physics laboratory Cern in Geneva, criticised the verdict as “a big mistake.”

“These are professionals who spoke in good faith and were by no means motivated by personal interests, they had always said that it is not possible to predict an earthquake,” he told the Corriere della Sera newspaper.

“It is impossible to produce serious, professional and disinterested advice under this mad judicial and media pressure. This sort of thing doesn’t happen anywhere else in the world.

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This is the end of scientists giving consultations to the state.”

The seven defendants were given six-year prison sentences and they, along with the Prime Minister’s office, were ordered to pay 7.8 million euros in damages.

There has been an outcry from both the Italian and international scientific community, who say these individuals shouldn’t be punished if their forecasts don’t come true.

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The American Association for the Advancement of Science has has called the convictions “unfaire and naive,” while the The Guardian has written that “few scientists will want to take responsibility for similar statements in the future.”

Scientific American takes a different stance, however. Risk perception consultant David Ropeik, in a guest blog post for the publication, feels the Italian scientists were at fault for failing to communicate the risks to the public. It’s tough to disagree with Ropeik.

The meeting that was held six days before the earthquake was called after a swarm of tremors shook the area. Seeing this as no major reason to expect an earthquake, the group gathered for what they called a media operation — basically, a meeting to calm the public’s fears, when what they should have been doing was preparing the public in case a major quake were to follow the tremors. Even worse is the following:

In a leaked telephone call, Guido Bertolaso, then head of the civil protection agency, told a local official that he was calling the meeting as “more of a media operation.” The top civil protection official at the meeting, Bernardo De Bernardinis, said in a television interview that residents faced “no danger” and should sit back with a glass of wine – recommending a Montepulciano.

Six days after that Montepulciano recommendation, 309 people were dead. And though a six-year sentence seems too harsh, someone must be held accountable — not for failing to predict, but for nonchalantly failing to educate and warn the public of what could occur.

The Five Most Treacherous Airports to Land a Plane

Flight, a movie starring Denzel Washington as a pilot who makes a harrowing landing to save a planeload of a passengers, will open nationwide on November 2. While the inspiration for the Robert Zemeckis-directed film was certainly Sully Sullenberger’s famous landing in the Hudson, the movie is fiction and fortunately threatened the lives of no fliers.

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But even though the miracle of flight happens thousands of times everyday across the globe, it remains dangerous.

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Just check out what pilots had to confront one day in Spain.

To former pilot Guy Hirst, who spent 34 years with British Airways, the five scariest airports to land a plane at are Mexico City, Hong Kong, Salzburg, Gibralter and New York’s JFK. Each poses its own challenges — from visibility and wind conditions to air-space restrictions and nearby mountains — but when he thinks about each of these locations, he just seems happy to be retired.

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Robert Hartwig Discusses the Insurance Market

Due mostly to much lower catastrophe losses, the property/casualty insurance world was much more profitable in the first six months of 2012 than it was in the first half of 2011. Dr. Robert Hartwig, president of the Insurance Information Institute, stopped by WRIN TV to discuss these results and what affect they might have on commercial insurance pricing in the near future.

Click through to watch the video interview.

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The Reputational Risk and IT Relationship

With more visibility and vulnerability in today’s business landscape due to social media, online commerce and doing business through mobile devices, it only makes sense that there would be more potential risks to a company’s reputation and brand. In fact, now more than ever, executives are attempting to protect their brands from these security threats by being more proactive and looking for blindspots in their risk management program. That’s according to findings from the “2012 IBM Global Reputational Risk and IT Study,” conducted by the Economist Intelligence Unit, which analyzed responses from 427 senior executives from around the world, representing nearly all industries.

Respondents indicated that cybercrime is more of a reputational threat than systems failure — a finding that clearly illustrates how cybersecurity is a growing concern among executives, as shown in the following graph from the report.

What’s more, 64% say their company will put additional effort into managing its reputation in the future while 75% of respondents say their IT budget will grow over the next 12 months due to reputational concerns. “Underestimating the cost of reputational risk greatly exceeds the cost of protection,” said one U.S.-based study participant. “Being proactive is preferable to being reactive.”

As the report states:

Going forward, assessing potential blind spots and new technologies will likely be accelerated through the use of case studies and scenario analysis rather than waiting for direct experience. “To use new technologies like cloud you need trust,” says Andrea MacIntosh, director of quality with Alpha Technologies in British Columbia, Canada. “How do you build trust? Either by demonstrating performance or through looking at comparable organizations that are using it with good success. I think there’s a lot of referential data for companies like ours, but as with any new technology, you’ve got to be cautious.”

So how does a company avoid data breaches and strengthen the public’s trust in its brand? The respondents feel that integrating IT into reputational risk management, along with having a strong IT risk management capacity, is the best bet.

Gone are the days when a customer inherently trusts that a company’s IT capabilities are sufficient. In fact, customers are taking a more proactive approach when it comes to understanding a current or potential business partner’s IT infrastructure. “We’re seeing more requests from our customers for details of our IT infrastructure and security, along with on-site audits, as part of the supplier qualification process,” said MacIntosh.

Organizations of all sizes across all industries are devoting more time and attention to potential cyber threats that could harm their reputation. “This concern is reflected in more integrated, enterprise-wide approaches to risk management led from the C-suite and increased attention being paid to the direct reputational impacts of IT risks,” the report states. This study, along with many others, point to the conclusion that cyber and data security has earned top billing in the list of biggest risks posed to businesses. How is your company responding?