Tag: Risk

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Samsung Galaxy S8 Face Unlock Defeated by Photo

MARCIANOTECH uploaded a video showing a Samsung Galaxy S8 unlock using a photo of himself. Google introduced the Face Unlock feature in Android 4.0 and is aware that photos can unlock the screen. The feature is a convenience, not a security enhancement.

In a statement to Ars Technica Samsung Electronics Ltd. ( KS:005930) spokesperson provided the following:

The Galaxy S8 provides various levels of biometric authentication, with the highest level of authentication from the iris scanner and fingerprint reader. In addition, the Galaxy S8 provides users with multiple options to unlock their phones through both biometric security options, and convenient options such as swipe and facial recognition. It is important to reiterate that facial recognition, while convenient, can only be used for opening your Galaxy S8 and currently cannot be used to authenticate access to Samsung Pay or Secure Folder.

This is a reminder that businesses should consider the convenience vs. security tradeoff. A fingerprint is more secure, but may introduce other security issues. Government agents can compel you or your employees to unlock a phone using a fingerprint or an iris scan. A PIN is the best choice if confidentiality of your company data is the highest priority.

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Natural Gas Prices Drop After Winter Storm Stella Misses NYC

Natural Gas (CME: NG) futures closed the day at $2.948. Winter storm Stella did not dump more snow on NYC as expected. Instead it shifted inland causing demand to drop.

Natural Gas Futures
Natural Gas Futures Intraday 2017-03-14

 

Heating Oil/Diesel (CME: HO) futures closed the day higher due to increased demand.

Heating Oil Futures
Heating Oil/Diesel Futures Intraday 2017-03-14

Preparing for storms and natural disasters is important to the success of your business. The ISO 22301 framework is a good starting point for your Business Continuity Program. Section 6 of ISO 22301 states that organizations need to address risks and opportunities to prevent, or reduce, undesired effects.

Having an inclement weather plan and topping off your backup generators with fuel is just one component of preparedness. Prices for emergency fuel always spike before a weather event or immediately following a natural disaster. By refueling or negotiating guaranteed pricing while demand is low your business can save a lot of money. Immediately after a disaster market prices are very high. It may not be possible to receive delivery of fuel due to the event. Planning and executing is one way weather the storm.

If you are new to Business Continuity Planning and would like to learn more about developing your program or how to become certified in ISO 22301 please contact us for a free over the phone or Skype consultation.

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Economic Risk Assessment With FRB Mobility Data

The St. Louis Fed published a new study on Economic Mobility in the US. The study leads to a simple statistic: “the probability that a child born to parents in the bottom fifth of the income distribution makes the leap all the way to the top fifth of the income distribution”

Children born to parents in the bottom fifth of the income distribution chance of reaching the top fifth:

  • 7.5% USA
  • 9.0% UK
  • 11.7% Denmark
  • 13.5% Canada

There is a high degree of variation between regions in the US. The most optimistic and pessimistic numbers are:

  • 16.8% Top decile USA
  • 4.8% Bottom decile USA

People growing up in San Jose, California are three times as likely to move up the income ladder compared to Charlotte, Atlanta, Indianapolis.

Upward mobility national
Source: St. Louis Fed

 

The high degree of variation is not only regional. It is visible at the county level.

Average upward mobility rate:

  • 11% DC Metro Average
  • 3.5% Baltimore
  • 4.7% DC
  • 9.2% Prince Georges County
  • 14.2% Charles County
Upward mobility DC Metro
Source: St. Louis Fed

Factors affecting mobility during childhood in the more mobile areas include:

  • moving to low poverty census tracts improves long-term success
  • moving to a mobile area increases earnings in adulthood by 30%
  • higher likelihood of attending college
  • lower instances of teen pregnancy

General factors contributing to upward mobility:

  • mixed income communities produce a better outcome for kids from disadvantaged backgrounds
  • areas with less income inequality have higher rates of upward mobility
  • areas with fewer single parents have substantially higher rates of upward mobility
  • areas that are more socially cohesive have higher rates of social mobility

Risk assessments are important for international and local ventures. Finding a high-performing economy and a suitable workforce lowers the risk of failure. This information from the St. Louis Fed is an essential source for performing a risk assessment for US domestic businesses and for foreign businesses seeking to enter the US market.

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Societe Generale updates black swan report

Societe Generale has release their latest black swan risk report.  The risks are still the same as the post election report last November.

The key downside risks in order of probability are:

  • Political uncertainty drag (30%)
  • Sharp increase in bond yields (25%)
  • China hard landing (20%)
  • Isolationism and trade wars (15%)

The key upside risks in order of probability are:

  • More capex (10%)
  • Significant fiscal accommodation & fast track reform (5%)
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Ethics is the Foundation for Business

Verizon will purchase Yahoo’s internet business for $4.83 billion. Verizon is offering $350 million less than its initial bid. Both companies will share any future cost from the data breaches. Verizon will also waive its right to sue over allegations that Yahoo staged a cover-up of the breaches. The investment fund selling Yahoo will still be liable for penalties from the SEC and shareholder lawsuits. The sale price reductions are reasonable. Other breaches cost companies more than $100 million.

Transparency is the greatest concern for Verizon and the SEC. If Yahoo disclosed the event earlier the harm to investors may have less. Verizon’s bid impact would be less if it were known during due diligence. They instead had to react strongly to the news after due diligence. This proves that transparency is the best policy for all parties in the long run.

A strong compliance and ethics program is the foundation for businesses of all sizes. Business ethics is more than a slogan in a policy manual. The benefits of a compliance and ethics program are attainable without large programs built by even larger consulting firms. Leadership commitment to compliance and ethics is the first step. If the first step is inexpensive, why make the next steps expensive and complicated?

The Society of Corporate Compliance and Ethics has many free resources available to assist with building a compliance program.

A Compliance & Ethics Program on a Dollar a Day: How Small Companies Can Have Effective Programs