@Risk

Human rights and labor standards risks for companies and investors are increasing on a global scale, according to a new study from the risk analysis and mapping company Maplecroft.

The fifth annual Human Rights Risk Atlas (HRRA) found that nearly half (48 percent) of the 197 countries studied now pose ‘extreme’ or ‘high’ risks of corporate complicity in rights violations. All told, citizens in 95 countries are now exposed to human rights violations by states –that’s a 6 percent increase in countries posing ‘extreme’ or ‘high’ risks to business and investors since 2010.

What’s the reason behind the increase in human rights and labor standards risk? Maplecroft cites three main factors:

• the violent crackdown on protesters by security forces during the Arab Spring uprisings,
• an emerging set of resource scarcity challenges for business, linked to large scale ‘land grabs’ in developing countries by foreign investors, aimed at increasing food, water and energy security at home, and
• the global economic recession continued to challenge the rights of workers and has resulted in a trend for the trafficking of migrant workers for forced labor in countries such as Malaysia, Russia, South Africa and UAE.

Here is Maplecroft’s ranking of the ten countries where there’s the most extreme risk for human rights violations: (more…)

Many companies are focused on emerging markets to fuel growth. But in order to achieve success, these companies typically must clear numerous –and sometimes daunting –hurdles.

For example, Deloitte recently surveyed business leaders from companies expanding into developing economies. They said their primary challenges to increasing revenues in emerging markets are:

• providing products and services at affordable prices that meet customer needs (43 percent)
• competition from local businesses (40 percent)
• brand awareness in the market (40 percent)
• navigating protectionist policies and government bureaucracy (39 percent)

Clearly, each individual business situation is different, and so each company that eyes expansion into emerging markets must carefully weigh options and design strategies around the special requirements of each country’s consumer and regulatory environments.

The Deloitte study found companies with successful emerging markets operations implement certain strategies to generate revenue. They: (more…)

How careful are employees when it comes to IT security?

Apparently, most aren’t careful, at all. What’s more, most aren’t really concerned whether or not IT policies are followed.

Take a look at these survey results. IT security expert Avira polled nearly 1,000 of its users in September and found that:

• Only 38.95 percent of those participating in the study said they adhere to security policies designed to protect their company.
• About the same amount (35.42 percent) admitted there are security policies in place at their business, but that they didn’t feel that anyone really cared whether those policies were followed or not.
• The remaining 25.63 percent said they see security as a system administrator’s responsibility and not an employee concern. (more…)

In today’s economic environment, it’s no surprise that manufacturers are focused on cutting costs and improving productivity whenever possible. However, these priorities must be balanced with effective safety strategies that both ensure compliance and mitigate risks.

A new report from Aberdeen Group explores the challenge. Between September and October 2011, Aberdeen used on an online survey to examine the use, experiences and intentions of more than 120 enterprises that have implemented safety systems. The research showed that:

• Best-in-Class companies are 81 percent more likely than Laggard organizations to leverage outsource services to maintain their safety systems.
• Best-in-Class companies achieve a 0.2 percent injury frequency rate as compared to Laggard organizations who achieve 3.9 percent injury frequency rate.
• Best-in-Class companies achieve a 0.09 percent repeat accident rate.
• Best-in-Class companies are twice as likely as Laggards to leverage diagnostic tools to gain visibility into manufacturing operations.

But, even so, it’s clear that much work needs to be done. (more…)

Over the past few years, social media has evolved into an essential component of the marketing toolbox.

But, most companies have failed to keep pace with the necessary compliance and risk policies and procedures.

A recent study conducted by Grant Thornton LLP and Financial Executives Research Foundation illustrates the problem. The survey responses from 141 senior financial executives from public and private companies showed that: (more…)