@Risk

New research from OpSec Security, Inc. reveals that counterfeiting has expanded beyond high cost health and beauty products, such as luxury fragrances, into everyday personal care items, such as toothpaste, shampoo and nail polish.

Obviously, these fake goods extract an enormous economic toll, pose a threat to brand reputation and present a serious risk to consumer safety, as well.

OpSec used its proprietary internet monitoring platform to identify listings of health and beauty products on business-to-business (B2B) trade boards and business-to-consumer (B2C) trading platforms within the following categories: mascara, nail polish, shampoo, razors, men’s cologne and women’s perfume. By monitoring the key Suspicious Behavior Indicators characteristic of dubious sellers, OpSec found that: (more…)

Earlier this year, ten leading garment brands and retailers signed a “Call to Action” designed to ban denim sandblasting, a hazardous process that can cause illness and even death for workers.

“Jeans are one of the most popular items of clothing and a very profitable segment of the market is for ‘distressed’ jeans,” explained Patrick Itschert, General Secretary of the International Textile, Garment and Leather Workers’ Federation (ITGLWF). “The method of choice for giving jeans a faded look is sandblasting, but it is a process which is very damaging to workers’ health. Sandblasting releases dust which, when inhaled, causes scarring in the lungs. This can cause silicosis, an incurable and potentially fatal respiratory disease.”

Most countries banned sandblasting decades ago. However, it still occurs in numerous illegal workshops, putting thousands of workers at risk –and threatening the reputation and supply chain integrity of garment brands and retailers from throughout the globe.

Initially, the Call to Action to end sandblasting was signed and supported by Aurora Fashions, Bestseller, C&A, Carrefour, Esprit, Hennes & Mauritz AB (H&M), Inditex, Karen Millen, Levi Strauss & Co. and New Look.

Now, The Independent is reporting that the Italian fashion giant Versace has also agreed to throw its weight behind the effort. From the article: (more…)

Of course, members of your Board of Directors worry about financial risk.

But, new survey results from EisnerAmper clearly indicate that financial risk isn’t the only issue that has board members biting their nails.

EisnerAmper’s second annual Board of Directors Survey, Concerns About Risks Confronting Boards, showed that in addition to financial risk, board members are also concerned about:

• Reputational risk (69 percent)
• Regulatory and compliance risk (61 percent)
• CEO succession planning ( 55 percent)
• IT risk (51 percent)

More than 140 board members, sourced from both NACD Directorship and EisnerAmper databases, participated in the survey. Respondents represented both public and private companies, and 31 percent identified themselves as serving on audit committees.

Deep-diving into the regulatory and compliance risk category, EisnerAmper found that the board members polled are most concerned about: (more…)

“Conflict minerals” – minerals that are sourced from unstable regions of the Democratic Republic of Congo (DRC) and surrounding countries –continue to threaten a variety of manufacturing supply chains.

Over the past several years, mines and trading routes for tin, tantalum, tungsten and gold have become illegally controlled by rebel groups, which are profiting financially even as they inflict suffering on the local populations.

However, recent shifts in the control of eastern DRC may represent opportunities to begin reversing that trend.

Congo’s mineral trade in the balance: opportunities and obstacles to demilitarization, a new report from Global Witness, concludes that even though much of eastern Congo’s mineral trade remains under armed control, the recent departure of the Congolese army from Bisle –the region’s largest mine –is a promising development.

According to the report: (more…)

As companies dig out from the worst recession since the 1930s, business leaders continue to feel the threat of sustained economic trouble.

This persistent concern is front and center in Aon’s 2011 Global Risk Management Survey, which polled nearly 1,000 business professionals from 58 countries. The survey found that the economic slowdown is the number one risk facing organizations across all geographies, with 67 percent of respondents reporting loss of income in the last 12 months associated with this risk.

In another interesting highlight from the study, failure to innovate/meet customer needs made the top 10 list of global risks for the first time in the history of the study, debuting at number six. This development reflects growing concern about the risk of losing market share to more forward-looking competitors. What’s more, technology failure/system failure also earned its first top 10 spot, ranking ninth on the list. Technology concerns lead to fears about additional risks, including business interruption and damage to brand, which are also found to be top of mind for survey respondents.

Here’s the complete list of Aon’s 2011Global Risk Management Survey Top 10 Risks: (more…)