Showing posts with label business risk. Show all posts
Showing posts with label business risk. Show all posts

Can a Business Just Say No?


“No shirt, no shoes, no service.” It is not uncommon to see signs like this marking a clear line when a business will refuse to serve a customer. But are there other times that a business can say no to a potential customer?

A recent court case highlights the potential risks. A New Mexico photographer turned down a job to take wedding photos. The wedding was a same-sex marriage and the photographer reportedly stated that she only did traditional weddings. The same-sex couple was quickly able to get another photographer, but then filed a complaint with the New Mexico Human Rights Commission.

The New Mexico courts found that the photographer violated anti-discrimination laws in turning down the job. Regardless of your personal views of same-sex marriages, it does pose a very real question about when businesses can say no to customers or situations that either go against a business owner’s personal beliefs or could be a situation that the business has other concerns.

In the case of a wedding, what if the couple was incorporating some type of satanic elements and the photographers were religiously opposed? Or what if the couple was Neo Nazi and the photographer did not want to be part of that ceremony?

Perhaps more typical, would be situations where a customer just seems too difficult or demanding and it seems like a better business decision to walk away rather than risk creating a bad business relationship. We have all seen on some level examples of businesses struggling to deal with a difficult or challenging customer. These could be on a large scale with big business operations or even small businesses turning down a single customer. In one case, a home estate seller walked away from a pending client after a brief argument about access to the home during the sale, leaving the homeowner high and dry. The estate seller apparently felt that the potential arguments and aggravation was worth less than the potential income.

The problem with turning a failed non-deal into an anti-discrimination case means that individuals who are told no could crowd the legal system with accusations of discrimination whether that was the reason or not. In the case of the photographer, the owner could have walked away and simply lied, stating that she was overbooked that date. By being honest, the photographer opened herself up to the anti-discrimination case. On the flip side, if the photographer had backed out for truly being overbooked or not available, the would-be customers could still file an anti-discrimination complaint, if the customers are considered some protected group.

This poses a very valid risk of false accusations and intrusive government compliance. More importantly, is the impact on the individuals who make up a business, especially small businesses. Ultimately, businesses are comprised of individuals with their own beliefs, values and sense of right and wrong. There will be grey areas, but businesses do not need more obstacles in the form of regulation and individuals, even as business owners, should not lose their rights or liberties.   

 

Get a Business Black Belt for your organization – visit www.businesskarate.com/karate-belts.

Eric Smith, CPP is the leading authority on organizational self-defense. He has extensive experience in law enforcement as well as security management. Eric is available for staff education and security awareness training as well as business coaching to help organizations provide safe workplaces. To learn more email Eric at businesskarate dot com.

 

 

If you would like to reprint this post, please contact Eric at Eric at businesskarate dot com.

5 Issues to Consider When Relying on Insurance For Security


There are times when I find myself amazed that I can still be amazed. After nearly two decades in law enforcement and security, I still see mopes and miscreants with some new twist on wrongdoing that leaves my head spinning. More amazing are some of the decisions made by otherwise intelligent and rational individuals. And I am talking about many of the leaders of the organizations surrounding us in our communities.

I recently heard one story of a large project in which security had been heavily considered throughout the planning and implementation. It was a surprise to the organization’s security leader to hear a side comment in a meeting about a warehouse full of expensive equipment, located off-site in a nearby city. When the security leader asked about the security of the location, it was mentioned that the building and equipment were covered by insurance.

It does beg the question of whether or not insurance truly equals security. True, security professionals are taught that insurance is one method to reduce or manage risks. However, even with the best insurance policy in the world, there are downsides of relying on insurance to recover any losses, whether due to a theft, vandalism or other disasters.

When deciding on the best approach to the risks, there are several issues to take into account and consider if you are going to rely on insurance as your risk management tool.

1.     Deductible. Clearly, the amount you would have to pay out for the deductible should be evaluated. For a commercial account, the deductible could be thousands of dollars. For some companies, a large portion is self-insured, meaning the loss could be tens of thousands or even a hundred thousand dollars, just in the deductible alone. That same money could be wisely invested in security measures that would limit or even eliminate the losses.


2.     Discounts. Often insurance carriers will provide discounts for having the right security measures in place. The savings help justify the investment.


3.     Time to replace. If critical items are stolen or damaged, it is important to consider the time involved in replacing those items. You may have to determine what was lost or damaged and there could be substantial lead time, especially if goods have to be customized or are shipped from overseas. How well can you manage without the merchandise that was lost and for how long?

 
4.    Availability of replacements. Time is not the only consideration with replacements. Sometimes, the materials are simply hard or even impossible to find. This will depend largely on the type of goods and industry. There are many industries where certain common goods may be tricky to obtain for one reason or another, or even there could be an all out shortage. Even if insurance covers the loss, you may have a difficult time actually replacing the stolen materials. There is also the time it takes to inventory what is left, place new orders and re-stock those goods, affecting the productivity of employees.


5.     Negative publicity. Depending on the type of organization you work for, there is a certain risk of negative publicity if certain materials are not available or on hand. Imagine a hospital dealing with the negative publicity due to a shortage of medicine like Tamiflu during the flu season, or even a shortage of saline solution (a very real problem). There have been cases in which schools were vandalized and had to close for a day or two while repairs were made. Insurance alone will not build confidence with customers or restore faith in the safety of the organization.

If you are in a situation where insurance seems like the right approach to dealing with the risk of losses, then be sure to truly evaluate and assess the potential downsides rather than just taking the easy path and hoping nothing bad happens.

Get a Business Black Belt for your organization – visit www.businesskarate.com/karate-belts.

Eric Smith, CPP is the leading authority on organizational self-defense. He has extensive experience in law enforcement as well as security management. Eric is available for staff education and security awareness training as well as business coaching to help organizations provide safe workplaces. To learn more email Eric at businesskarate dot com.

 

 

If you would like to reprint this post, please contact Eric at Eric at businesskarate dot com.

Security Tip: Know Your Industry Risks


Every business has its own unique challenges. Security and crime concerns are one of those challenges. Some businesses may be at a higher risk of robbery, others may be more likely to encounter violent behavior and some may have safety issues such as chemicals and hazardous materials.
 
A robbery will most likely happen at a business dealing in high-value items, such as cash. Think of banks. Liquor stores and even pharmacies are frequent targets for those looking for artificial ways to enhance their lives. Working in isolation or out in the community adds to the risks, such as taxi drivers or convenience store clerks.
Other industries may be more exposed to violent attacks. Hospital workers, for example, are at a higher risk of assault due to the interactions with patients dealing with substance abuse and withdrawal, as well as those with mental illness.
Think about the crime risks or dangers simply due to the type of industry where you work. Once you realize the general dangers at work, you will be ready to take the right steps to keep those perils away.
 
Eric Smith, CPP is the leading authority on organizational self-defense. He has extensive experience in law enforcement as well as security management. Eric is available for staff education and security awareness training as well as business coaching to help organizations provide safe workplaces. To learn more email Eric at businesskarate dot com.
 
 
If you would like to reprint this post, please contact Eric at Eric at businesskarate dot com.

The Security Outlook for 2014



               This is the time of year when we find ourselves thinking of New Year Eve’s parties, confetti, Auld Lang Syne and resolutions for the new year (usually around getting rid of the pounds we put on during Christmas). There is also the stream of news stories about the past year, the top stories and the events and people that shaped the year. It is also a good time to take a glimpse into the coming year and think about the changes, challenges and rewards that lie ahead.

               Security, and how security relates to business, is constantly changing as well, so this is a good time to reflect and plan for the future.

Information Security
Cyber risks are a global concern

               Information security will continue to be a top focus when it comes to security. With the latest breach of credit and debit cardholders who shopped at Target, there is the ongoing fear of identity theft. The investigation continues on how hackers were able to collect all that information, including PINs for debit cards. How much of this was actually used remains to be seen or if it was an inside job. However, it has garnered a lot of media attention and brought identity theft and information security back into the spotlight. It would be surprising if there were not a push for some new legislation as a result of this, including penalties to businesses that expose customers.

               Another top concern related to information security and hacking is the risk of cyber-attacks, especially on critical infrastructure such as power grids. There have been various attacks, including some coming from foreign governments, such as China and Iran. A serious attack on utilities could essentially put the United States back in the stone ages in moments and would certainly wreak havoc.

               The hidden risk is the continued shift of focus away from physical security. Protection from physical attacks should never be overlooked. There have been a number of actual attacks, including active shooters, even the recent suicide bombs in Russia. 

NSA
               The story of Edward Snowden, the wayward NSA contractor, fleeing the country with tens of thousands of confidential documents is not going to disappear any time soon. There are legal repercussions ongoing and the question of how much information the NSA (National Security Agency) can legally gather from citizens will almost certainly end up before the U.S. Supreme Court.

               In the meantime, Snowden still has tens of thousands of additional documents that could be released and we can only speculate what kind of information might be within. The revelations have re-ignited the debate between security and liberty. Benjamin Franklin is known for saying that those who value security over liberty deserve neither. In 2014, we will certainly see more debates on how to balance protection from terrorists while protecting individual privacy and our constitutional rights. There is an additional question related to security; how did the NSA, of all groups, miss the dangers of allowing a contractor, not even a full employee, access to so many confidential documents. You have to wonder what kind of background screening was done as well. That leads to the question of how the NSA can manage gathering so much information and find the true threats when probably 99% of the information is useless.

Pay Inequality

               The World Economic Forum’s annual report has identified economic disparity has one of the top risks facing the globe. It is certainly an area getting a great deal of attention, not just between poor and wealthy nations, but even within developed countries. The U.S. president routinely brings up the issue as a champion of the downtrodden, who in turn express their outrage at being poor across social media with their iPhones. 

               In truth, there is a growing problem. Historically, top executives once earned about 20 times what the average employee made. Today, it is not uncommon for top executives to earn 200 or even 500 times what the average employees earn. Worse, household income has dropped over the last few years while corporate profits have been increasing. That is a recipe for discontent and social unrest. Switzerland, a business-friendly nation, nearly passed a restriction that would have limited executive pay to only 12 times the pay of the lowest-paid employee.
 
News Photo
               The risk is disturbances or even riots, is a very real threat that could impact supply chains and disruptions of service or even strikes. We have seen a variety of businesses that boast of being ‘green’ or promoting ‘fair trade’ and it is likely that some forward thinking businesses will promote themselves for caring for employees and having more equitable pay scales.

Obamacare

               A look at business risks cannot ignore health insurance reform, a top issue in the United States, specifically the Affordable Care Act, aka Obamacare. Within the healthcare industry there is great uncertainty and talk of cost control, i.e., lay-offs. Meanwhile of the 40 million uninsured Americans, only 1 million signed up for Obamacare. Most Americans are finding that the costs are anything but affordable. 

               Certainly, health insurance is going to be a hot topic, within both politics and healthcare, but also one that impacts every business and individual with insurance. The deductibles and monthly premiums are increasing. Businesses that provide services to hospitals should be particularly wary, as the hospitals will squeeze every contract for savings. Likely, the only things that will not change are the salaries paid to the physicians.

Active Shooters


               Shootings in Colorado and at Sandy Hook Elementary have sparked debate on care for mental health patients and gun control. School security has been a particular focus. Just like after 9-11, when there was a sudden emersion of so-called terrorist experts, there is now a rush of school security experts with arrays of solutions. Training teachers how to fight armed attackers with knee strikes and elbows is becoming more commonplace, although there still seems to be reluctance to add well-trained, armed guards to schools (expense is part of the concern). Learning to fight back is great, but it would be better yet to have the right tools for the job.

               The risk is that attackers also learn from news coverage and will adapt their plans to harm as many people as possible. Schools and all organizations need to consider other potential tactics, such as explosives, chemicals or gas attacks and so forth. Terrorists have used similar methods around the world for decades, sometimes with horrific effect. Do not get tunnel vision.

All the Usual

               In 2014, we will see our share of bizarre and strange crimes. Lust and greed fuel evil people into all sorts of crazy schemes. If any involve beautiful women or tales of sex as part of it, you can expect the usual media frenzy. Oh. Don’t forget the usual celebrity stories with drugs, alcohol, rehab and relapses and whatnot. Did I mention Duck Dynasty?

               Fasten your seat belt and hold on. 2014 will certainly be another interesting year.



Eric Smith, CPP is the leading authority on organizational self-defense. He has extensive experience in law enforcement as well as security management. Eric is available for staff education and security awareness training as well as business coaching to help organizations provide safe workplaces. To learn more email Eric at businesskarate dot com.

  

If you would like to reprint this post, please contact Eric at Eric at businesskarate dot com.

The Hidden Risk Menacing Businesses


Often, we know the risks facing us. That piece of cake tempting you is full of calories, posing a risk to your weight. Those French fries put your cholesterol at risk. Even at work, we do, or should, recognize various risks – lights out in the parking garage, for example, put employees at risk when they leave after dark.


However, there are those hidden threats that may not ever cross our minds and yet, are no less dangerous or damaging.


The World Economic Forum has released their annual report on global risks. The report looks at various challenges facing society around the world. Some examples have been concerns about water shortages, famine, price collapse, weather, political instability and severe storms. The last two years, the report highlights the threat of economic disparity, leading to social unrest, or dystopia (as in the opposite of utopia).


It is not hard to imagine. There have been riots in countries like Greece, based on economic fears. Adding to the fuel are the constant media reports mentioning the “one-percent” or the wealthiest 1% of the world’s population.
Greek riots - news photo


Throughout history, revolutions have often been based on exactly that kind of wealth imbalance. The French Revolution of the 18th Century is a classic example. There has been a breaking point, in which people oppressed have enough and step up to throw off the yoke and change their governments. Even the American Revolution was sparked by higher taxes to pay for benefits of a government far away.


What does this mean for businesses? If employees feel like they are being left behind, financially, with no raises or decreasing benefits, then there is the real risk of employee dissatisfaction and resentment. Especially if the company is growing or profitable and is not rewarding employees. Various news articles have shown that recent corporate profits, as a percentage of GDP have grown, while wages have stagnated.


This translates into poor morale and decrease in productivity and even elevates the risk of internal theft by some. There is a maxim amongst loss prevention professionals that 10% of people will never steal, 10% will always try to steal and 80% can be swayed either way. Employees who are frustrated with their company are more likely to use that as another way to justify dishonest behavior. That increases the risk that at least some of those employees in the 80% group will embezzle, cheat, steal or just chase away customers.
Aftermath of Greek riots - news photo


Depending on your business, there are lots of ways employees can sabotage you, whether intentionally or not. Poor customer service and poor quality control are some examples. Productivity may drop if employees no longer strive as hard. Employees may even be more prone to ‘sweetheart’ deals and give away product, even to strangers if they are not happy at work, such as giving away coffee at convenience stores.


Business leaders need to pay attention to the potential unrest and make rewarding employees a top priority when the company is successful. If not, you could send a message as Marie Antoinette did when she famously declared, “Let them eat cake” when told her citizens had no food to eat. And we know how that ended – at the guillotine!

 

Eric Smith, CPP is the leading authority on organizational self-defense.  He has extensive experience in law enforcement as well as security management.  Eric is available for staff education and security awareness training as well as business coaching to help organizations provide safe workplaces.  To learn more email eric@businesskarate.com.

 

 

If you would like to reprint this post, please contact Eric at eric@businesskarate.com. 

Global Water Cooler – War, Crime and Scandals From Around the World

            Everyday around the world there are so many different things going on, it is hard to stay caught up.  Some are interesting; some tragic; some exciting; and others may have a direct impact on our lives and even on how or where we operate our businesses.  At the very least, a summary of some of the topics will give you something to talk about around the office ‘water cooler’ or something to think about when planning your global operations. 

North Korea

Last week, North Korea tested a rocket claiming it was going to be used to launch satellites.  The concern was that the rocket could have been used to fire nuclear bombs into Japan or even the United States.  Fortunately, the rocket blew up shortly after lift-off.  This was considered a violation of recent international agreements reached in February, in which food shipments were promised in return for non-proliferation of arms and nuclear testing.  The US has announced that it will stop food shipments to North Korea and reinstate sanctions.

Impact – Any hoped for change in North Korea under the new regime seems unlikely at this point.  Don’t count on new markets opening here.

Myanmar

British Prime Minister David Cameron visited Myanmar, formerly Burma, to assess recent changes in leadership.  The government is still dominated by the military, but key elections in Myanmar’s parliament have ignited confidence that the country could be changing.  EU sanctions are likely to be lifted (expect for an arms embargo) and both European and US companies are looking for potential business opportunities, especially in construction and healthcare.

Impact – This could be a great business opportunity as the market starts opening up to international companies.  Myanmar is the home of the longest producing oil field.  Beware, though, only about 25% of the country is on the nation’s electrical grid meaning very limited infrastructure.

Paris

A serial killer has been roaming Paris and has killed two women and two men with the same gun according to ballistic tests.  The killer struck three of the victims from a scooter wearing a helmet as a disguise.  French police arrested two suspects, one of whom was later released as a victim of identity theft while the other remains in custody and is expected to face charges.  However, he has not confessed as of yet.

Impact – More of an interesting story than having a real impact, but the fear and concern was increased due to the similar style attacks in southern France that left several dead, including victims at a Jewish school and three paratroopers from North Africa.  The suspect in that case died after a shootout with police as he jumped out of his apartment window.  That suspect had ties to Al-Qaeda and traveled to Afghanistan for training.

Sudan

South Sudan broke off from Sudan in 2011, after a six-year ‘waiting period’ following a bloody civil war ending in 2005.  In recent days, the fighting has escalated with reports of air attacks and bombing along the border.  Heglig, a city in Sudan, was seized by South Sudanese and bombed by Sudan during the fighting.  There are reports of fighting all along the border region.

Impact - Fighting in the area is nothing new, but the increased violence does pose concerns for the region.  Sudan borders Egypt and Libya, as well as Chad and all are suffering instability in light of recent changes in government and leadership.  Al-Qaeda has been active in the region so this certainly poses a concern of attacks on European and American interests as well as potential new footholds for the terrorist group.  The situation is ripe for exploitation by terrorists groups as Sudan is primarily a Muslim country and South Sudan is predominantly Christian.

Syria

A very fragile cease-fire has been put into place, but the fighting continues with government forces reportedly bombing areas near the Turkish border.  Turkey has been dealing with refuges crossing the border to escape the violence.

Impact – Only time will tell.  The current government has brought a certain amount of stability to the area, but at a cost to the county’s own people.  Since opposing forces have begun speaking up, more than 11,000 people are thought to have been killed.

China

In a growing scandal, British businessman Neil Heywood was murdered by Gu Kailai, the wife of one of the top communist party leaders, Bo Xilai.  Heywood’s death was originally thought to be alcohol-related, but it now appears that he was poisoned.  According to the Times of India, he threatened to report Kailai after she wanted him to move a large sum of money and he demanded a larger percentage, which was refused. 

Bo Xilai has been removed from office and the corruption has prompted calls for action to rid the government of corruption.

Impact – This may prompt some changes throughout the government and clean up some forms of corruption.  However, it seems that corruption will find a way and that dirty politicians will manage to contrive ways to cheat the system.  In the long term, probably no real impact, but an interesting story nonetheless. 

Eric Smith, CPP is the leading authority on organizational self-defense.  He has extensive experience in law enforcement as well as security management.  Eric is available for staff education and security awareness training as well as business coaching to help organizations provide safe workplaces.  To learn more visit http://www.businesskarate.com. 







If you would like to reprint this post, please contact Eric at eric@businesskarate.com. 

What Are You Afraid Of?

Recently, I came across a survey on the website of a security publication.  The survey asked the readers what their biggest concern was for the coming year.  The vast majority of security professionals had answered that terrorism was their biggest fear.  The poll got me thinking about the real everyday threats facing organizations.  What is the biggest threat ahead in the next year or next few years?

Certainly, terrorism is a very real risk.  There have been numerous attempts across the U.S., as well as attacks carried out overseas.  But is that the most serious or dangerous challenge facing businesses?  The better question might be should terrorism really be the focus of any risk mitigation or protection program?

It terms of probability, companies are much more likely to face crimes, such as robbery, theft or embezzlement.  Of those, embezzlement probably has the highest impact in terms of loss, with some insiders finding ways to steal millions of dollars from employers.  There is also the risk of workplace violence.  Some studies have shown a decrease in workplace violence, events such as active shooters still happen far too often.  Recently, we saw the news of a shooting at a small college campus that left seven dead and several wounded.  Active shooter cases seem to be much more frequent.

Terrorism response by most businesses is fairly limited as well.  Understanding your specific potential of being the target is important, as is training on identifying suspicious activity, such as surveillance.  The best approach for most enterprises is to develop solid business continuity plans and emergency response to survive a wide range of disasters.

Assuming you have disaster planning as part of your protection plan, the focus then shifts to the everyday and most common threats facing the organization. 

Globalization is one risk.  With growing instability in many parts of the world, there are increasing risks.  Supply chains are one critical element.  Social unrest or labor protests can interrupt or stop shipment of key supplies.  Austerity measures in countries like Greece, have led to protests in which transportation workers and drivers have walked off the job or gone on strike.  Truckers and subway workers in France have done the same thing in the past.  As long as there is growing concern over cutbacks and the disparity of wealth, protests such as this will continue. 

Closer to home is the concern over technology.  As a society, we are more and more dependent on technology from emails, texts and document sharing.  Smart phones to desktops, we are surrounded by high tech.  What are the risks from any interruption in service?  Loss of data, malware, denial of service attacks are some examples.  There are risks that are more ordinary as well.  What about the loss of productivity with changes in software or equipment?  Changing procedures, training staff on new ways of doing their jobs, and, the often overlooked, making sure the new processes work as intended, all can create downtime and lost productivity.  The time lost in re-learning basic tasks to use new technology can be a very real factor.

The greatest risks, though, may be in the fundamentals.  Poor leadership, bad customer service and lack of capital are the primary reasons that businesses fail.  Leaders that fail to set good direction or who make poor decisions steer organizations or their departments straight into failure.  This includes bad judgment, such as missing warning signs, changes in the market or perhaps not realizing that the team is not delivering what they need to.

 Every organization has customers and every employee needs to remember that.  The customer may be internal, such as the cleaning crew keeping the office sparkling and sanitary or it may be the cashier interacting face to face with external customers.  All customers, internal or not, have expectations that need to be met.  Failing to do so or doing it with a poor attitude, poor service or in a way that is uncaring will not work for long and will not be tolerated.  Once you’ve lost your customers, you cannot survive.

Lack of customer support and failure to lead effectively will certainly create a lack of capital.  Without resources, there is no ability to remain or regain competitiveness, develop programs to improve operations or even, in some cases, be able to pay employees.

And coming full circle back to terrorism, for those whose role is to provide security or protect the workplace, missing the fundamentals will mean not being able to do your job.  If your biggest fear is terrorism, then keep your focus on the basic day-to-day operations in order to be successful at the ultimate goal.



              

Eric Smith, CPP is the leading authority on organizational self-defense.  He has extensive experience in law enforcement as well as security management.  Eric is available for staff education and security awareness training as well as business coaching to help organizations provide safe workplaces.  To learn more visit http://www.businesskarate.com. 



If you would like to reprint this post, please contact Eric at eric@businesskarate.com.