How to Improve Network Security
February 19, 2012 | 
Author Naturally, with the growing benefits of technology, the Internet and network configurations comes the growing danger of security breaches, identity theft and cyber crimes. Unfortunately, electronic theft is becoming a greater danger to many businesses across the globe, so how do business owners keep their data safe and secure? One way to keep sensitive information secure is to constantly improve network security and to stay ahead of the game.
Every day we hear that computer viruses, hacker, and other security breaches have found new ways to steal identities, financial records and other information we thought previously secure. Because of the increase in such cyber crimes, data protection laws have tightened and the punishments hardened. With this comes the need for all businesses to take data security very seriously.
It is extremely important to improve network security for your business on a regular basis. Aside from encrypted pages and passwords, there is a multitude of ways to improve network security for your business which include firewalls and other infrastructure protective measures. Education, information and action are key elements to improving any network’s security.
Before a business can adequately protect its network, it is important to understand that there is no such thing as a completely secure system, as technology is always changing. However, to stay one step ahead and keep the network secure, business owners and their IT department should learn and understand any and all risks associated with security standards and network systems.
Network security can always be improved. After understanding the risks involved in any network, network operators should be educated and informed. It is important for network operators to keep an eye out for operational anomalies. Any anomaly is usually an indication that something is wrong and there may be a security breach. In addition to educating operators, it is important for operators to know and understand the risks associated with your existing security standards. Risk mitigation is essential in improving network security.
Organisation is also crucial to improving network security. It is an excellent idea to employ both control system engineers and IT specialists to work together to maintain the network. If you are unable to employ individuals, you may outsource the positions. The team should schedule risk analyses on a regular basis, implement change control and monitor the network regularly. Additionally, create policies and procedures that describe and outline risk mitigation, alert vectors and actions to be taken if and when any type of security breach is detected is smart. Furthermore, your operating staff should know exactly who to contact in the case of a breach or attack on the security of the network.
Following industry guidance and suggestions is also a good way to improve network security. One of these suggestions is to create a single point failure matrix, which is often critical during possible threats or attacks. The network security industry is always announcing new ways to secure and protect networks, configurations and information.
Staying informed has never been more important than when a business needs to improve network security. Though integrating the latest technologies and protections for your network is smart, regular security audits, education, and monitoring are all key ways to improve network security.
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Virtual Worlds For Children, Tweens and Teens
Virtual worlds have become a growing power in kids’ online activities. In 2008, an estimated eight million US children and teens visited virtual worlds on a regular basis. It is estimated that by 2013 this number will be doubled. These online worlds are a relatively new phenomenon, so there isn’t much research on their impact on kids. As parents, we ask: Is it safe? Is it educational? Do our children benefit from this activity? In lack of long-term research the best answer seems to be that like every other activity we choose to do, when it is measured and in balance with other activities, it can be enjoyable, harmless and sometimes even educational. It is our responsibility as parents to direct our children to safe constructive activities that will help them to grow as people and become contributing citizens. The same thing is true for choosing online activities for them and specifically for virtual worlds. As parents we have to make sure that our children visit virtual worlds that are suited for their age and are safe for them. We also want to direct our children to virtual worlds that offer quality content and educational value.
What is a virtual world?
Virtual worlds are services which offer Internet users a computer simulated environment imitating the real world. In the virtual world the user interacts by using an avatar (a two-dimensional or a three-dimensional computer graphic identity, which represent a user’s alter ego or the user’s real persona) in online chats.
There are two main types:
Massively Multiplayer Online Games (MMOGs) -
These virtual worlds use point systems and competition in the simulation. They have winners and losers. Commercial MMOGs include Everquest and World of Warcraft.
Non-game worlds -
These virtual worlds are less game-like, or not games at all. They are more like social networking services like MySpace and Facebook, but with 3D simulation features. For example, Second Life, ActiveWorlds and The Sims Online.
What are the risks for kids in virtual worlds?
Children and teenagers can easily get absorbed in a virtual world. It is an enjoyable pastime allowing them to try different points of view and avatars. The danger is when a child is invested more in the virtual life than in real life. This may result in withdrawal from real life activities, poor social skills, loss of ability to distinguish between the real and the imaginary, etc. It is important to limit the time a child or teenager spends surfing virtual worlds in order to keep the child’s base in the real world.
Private information may be exposed in virtual worlds when a child is persuaded to give up his/her real identity to strangers. It is important to emphasize to the child not to give away private information under any circumstances.
Sometimes virtual worlds especially ones that are intended for teens can become violent environments. Many virtual worlds have guardians – adults that have avatars in the game and are there to keep the peace. These guardians can not always stop violent behavior. It is important for parents of teens to be involved in their children’s online activities and to instruct them how to behave in problematic situations.
Online predators sometimes use social network services and virtual worlds to target potential victims. They pose as children and gradually seduce them into an online relationship. This relationship might end in sexual abuse.
The chance of your child being targeted by online predator is low, but since such an encounter has severe consequences, parents should be aware and make sure that their kids don’t get involved in online relationships with strangers.
All of these risks are worrying, but it seems that the greatest risk in virtual worlds for kids is the inherently commercial nature of many of them. Kids are encouraged to buy clothes, toys, food, books and more for their avatars using the virtual world currency. In some worlds they have to play games in order to earn “money”, in some they buy the virtual world currency with real money. You can see in many virtual worlds, avatars that are dressed in high fashion clothing and have expensive cars and homes. Many virtual worlds have a strong correlation between consumption and citizenship. Kids are learning that in order to be a good citizen they have to buy the right stuff. Many virtual worlds also have a lot of advertisement.
In order to avoid this commercial nature, parents should direct their children to non-commercial virtual worlds that usually have more educational value.
What are the Benefits of Virtual Worlds for Children?
In virtual worlds kids are involved in informal learning. By trying different avatars, points of view and jobs they play out scenarios over and over from different angles. They can see what approach is best for them. They learn how to socialize, how to be Internet savvy, how to buy and sell online and how to be members of a society. They learn skills that they’ll need in the future workforce.
Matching the Virtual World to the Child’s Age
When choosing a virtual world for your kids or checking the ones your kids use, it is important to keep the age factor in mind. Today children surf in online worlds from the age of three (usually with adult help) to 18. It is important to see that the virtual world they enter is safe for their age and offers appropriate content.
There are three major age groups:
Young children – age 3-10. Kids in this age group are just starting to discover the cyber world. They often need help from an adult in order to surf. It is not recommended to let children at this age surf without adult supervision. It is important to make sure that the virtual worlds the child surfs are safe, enclosed environments. There should be no advertisement (or very little). Online chats and forums, if such exist, should be limited and monitored.
Tweens or juniors – age 10-14. Tweens are kids who are stuck in this phase between being young kids and being teens. Children at this age range usually have good technological and language abilities that allow them to surf freely. On the other hand, they lack the maturity and experience to help them understand the content that they encounter when surfing-they need adult guidance.
They are a vulnerable population. Their high technological abilities and desire to socialize exposes them to risks, as well as their PC and private family information.
Tweens will usually look for more complex online worlds that will allow them to chat with their friends freely. It is important for parents of tweens to be involved as much as they can in their kids’ online activities. Parents should direct their tweens to virtual worlds they find suited for them. Guidelines for Internet use should be defined. These guidelines should emphasize Web ethics and privacy protection. Include the child when defining the guidelines in order to make the child more committed to them. An Internet-use policy may help in making those guidelines clear. Parents should talk to their kids about Internet threats, such as: malware attacks, online predators, harassments, and give them examples of immediate solutions, for example: turning off the PC and notifying a parent. Most important is to give your children confidence about approaching the adults in the family in case they encounter suspicious behavior when surfing.
Teenagers – age 14-18. Teens have fully developed technological and language skills. They are confident surfing the Internet (sometimes more than their parents). The Internet becomes a strong social and educational tool in their life. Teens are usually more aware of the risks that exist on the web. On the other hand, in this age group there is a tendency for risk taking. In addition, teens usually use a PC in the privacy of their own room, or they go to places that allow them to surf without supervision. So it is nearly impossible to monitor the teenager’s Internet activities.
Teens will usually be attracted to adult virtual worlds. Adult virtual worlds are not always suited for teenagers. In some you can encounter cybersex activity and violence. It is important for parents of teens to keep being involved in their kids’ online activities. Offering teens appropriate websites that may interest them could be a great solution. There are virtual worlds for teens that offer great content and are non-commercial. Parents should also emphasize Web ethics to their teenagers and warn them about Internet threats.
In order to find a suitable virtual world for your kids you can check out – SafeWeb directory [http://safewebforchildren.com/pages/sub_category.php/?sub_category=Virtual%20Worlds]. This is a web directory that offers safe websites for kids.
Risks in International Business
Just as there are reasons to get into global markets, and benefits from global markets, there are also risks involved in locating companies in certain countries. Each country may have its potentials; it also has its woes that are associated with doing business with major companies. Some of the rogue countries may have all the natural minerals but the risks involved in doing business in those countries exceed the benefits. Some of the risks in international business are:
(1) Strategic Risk
(2) Operational Risk
(3) Political Risk
(4) Country Risk
(5) Technological Risk
(6) Environmental Risk
(7) Economic Risk
(8) Financial Risk
(9) Terrorism Risk
Strategic Risk: The ability of a firm to make a strategic decision in order to respond to the forces that are a source of risk. These forces also impact the competiveness of a firm. Porter defines them as: threat of new entrants in the industry, threat of substitute goods and services, intensity of competition within the industry, bargaining power of suppliers, and bargaining power of consumers.
Operational Risk: This is caused by the assets and financial capital that aid in the day-to-day business operations. The breakdown of machineries, supply and demand of the resources and products, shortfall of the goods and services, lack of perfect logistic and inventory will lead to inefficiency of production. By controlling costs, unnecessary waste will be reduced, and the process improvement may enhance the lead-time, reduce variance and contribute to efficiency in globalization.
Political Risk: The political actions and instability may make it difficult for companies to operate efficiently in these countries due to negative publicity and impact created by individuals in the top government. A firm cannot effectively operate to its full capacity in order to maximize profit in such an unstable country’s political turbulence. A new and hostile government may replace the friendly one, and hence expropriate foreign assets.
Country Risk: The culture or the instability of a country may create risks that may make it difficult for multinational companies to operate safely, effectively, and efficiently. Some of the country risks come from the governments’ policies, economic conditions, security factors, and political conditions. Solving one of these problems without all of the problems (aggregate) together will not be enough in mitigating the country risk.
Technological Risk: Lack of security in electronic transactions, the cost of developing new technology, and the fact that these new technology may fail, and when all of these are coupled with the outdated existing technology, the result may create a dangerous effect in doing business in the international arena.
Environmental Risk: Air, water, and environmental pollution may affect the health of the citizens, and lead to public outcry of the citizens. These problems may also lead to damaging the reputation of the companies that do business in that area.
Economic Risk: This comes from the inability of a country to meet its financial obligations. The changing of foreign-investment or/and domestic fiscal or monetary policies. The effect of exchange-rate and interest rate make it difficult to conduct international business.
Financial Risk: This area is affected by the currency exchange rate, government flexibility in allowing the firms to repatriate profits or funds outside the country. The devaluation and inflation will also impact the firm’s ability to operate at an efficient capacity and still be stable. Most countries make it difficult for foreign firms to repatriate funds thus forcing these firms to invest its funds at a less optimal level. Sometimes, firms’ assets are confiscated and that contributes to financial losses.
Terrorism Risk: These are attacks that may stem from lack of hope; confidence; differences in culture and religious philosophy, and/or merely hate of companies by citizens of host countries. It leads to potential hostile attitudes, sabotage of foreign companies and/or kidnapping of the employers and employees. Such frustrating situations make it difficult to operate in these countries.
Although the benefits in international business exceed the risks, firms should take a risk assessment of each country and to also include intellectual property, red tape and corruption, human resource restrictions, and ownership restrictions in the analysis, in order to consider all risks involved before venturing into any of the countries.
Managing Risk in Financial Sector
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isk Management is a hot topic in the financial sector especially in the light of the recent losses of some multinational corporations e.g. collapses of Britain’s Barings Bank, WorldCom and also due to the incident of 9/11. Rapid changes in business condition, restructuring of organizations to cope with ever increasing competition, development of new products, emerging markets and increase in cross border transactions along with complexity of transactions has exposed Financial Institutions to new risks dimensions. Thus the concept of risk has captured a growing importance in modern financial society.By facilitating transactions and making credit and other financial products available, the financial sector is a crucial building block for private as well as public sector development. In its broadest definition, it includes everything from banks, stock exchanges, and insurers, to credit unions, microfinance institutions and moneylenders. As an efficient service provider, the financial sector simultaneously fulfils an important function in the overall economy. Various types of Financial Institutions actively working in Financial Sectors include Banks, DFIs, Micro Finance Banks, Leasing Companies, Modarabas, Assets Management Company, Mutual Funds, etc.
Thus today’s operating environment demands systematic and more integrated risk management approach.
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isk:
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isk by default has tow components; uncertainty and exposure. If both are not present, there is no risk. Definition of Risk as per Guidelines on Risk Management issued by State Bank of Pakistan is, “Financial risk in a banking organization is possibility that the outcome of an action or event could bring up adverse impacts. Such outcomes could either result in a direct loss of earnings / capital or may result in imposition of constraints on bank’s ability to meet its business objectives. Such constraints pose a risk as these could hinder a bank’s ability to conduct its ongoing business or to take benefit of opportunities to enhance its business.”Types of Risks:
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sks are usually defined by the adverse impact on profitability of several distinct sources of uncertainty. More or less all financial institutions have to manage the following faces of risks:1. Credit Risk
2. Market Risk
3. Liquidity Risk
4. Operational Risk
5. Country Risk
6. Legal Risks
7. Compliance Risk
8. Reputational Risk
Broadly speaking there are four risks as per Risk Management Guidelines which surround Financial Sector i.e. Credit Risk, Market Risk, Liquidity Risk and Operational Risk. These risk are elaborated here under:
i. Credit Risk
This is the risk incurred in case of a counter-party default. It arises from lending activities, investing activities and from buying and selling financial assets on behalf of others. This risk is associated with financing transactions i.e.:
a. Default in repayment by the borrower and
b. Default in obliging the commitment by another Financial Institution in case of syndicated arrangements.
It is the most critical risk in banking and one that must be managed carefully. It is also the risk that requires the most subjective judgment despite constant efforts to improve and quantify the credit decision process.
ii. Market Risk
Market risk is defined as the volatility of income or market value due to fluctuations in underlying market factors such as currency, interest rates, or credit spreads. For commercial banks, the market risk of the stable liquidity investment portfolio arises from mismatches between the risk profile of the assets and their funding. This risk involves interest rate risk in all of its components: equity risk, exchange risk and commodity risk.
iii. Liquidity Risk
The liquidity risk is defined as the risk of not being able to meet its commitments or not being able to unwind or offset a position by an organization in a timely fashion because it cannot liquidate assets at reasonable prices when required.
iv. Operational Risk
This risk results from inadequacies in the conception, organization, or implementation of procedures for recording any events concerning bank’s operations in the accounting system/information systems.
Need for Risk Management and Monitoring:
There are a number of reasons as to why there is so much emphasis given to Risk Management in Financial Sector now a day. Some of them are listed below: -
1. Present structure of joint stock companies, wherein owners are not the mangers, hence risks increase; therefore proper tools are required to achieve the desired results by covering the risks.
2. The financial sector has come out of simple deposit and lending function.
3. The world has become very complex so the financial transactions and instruments.
4. Increase in the number of cross border transactions which caries its own risks.
5. Emerging markets
6. Terrorism Remittances
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isk monitoring in financial sector is very crucial and an inevitable part of risk management. Risk Monitoring is important in the financial sector due to the following reasons:1. Deals in others’ money
2. Direct stake of deposit holder.
3. Much riskier sector than trading and manufacturing.
4. Previous / Recent problems faced by banks i.e. stuck portfolio that is credit risk.
5. Bankruptcy of Barings Bank due to short selling / long position that is market risk.
6. Operational risk does not has immediate impact, but important for continuity and progress of organization.
7. Appetite of a financial institution to take risk is related with the capital base of the institute so it caries a huge risk of over exposure.
Components of Risk Management Frame Work
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isk Management Frame Work has five components. First of all risk is Identified, then it is Assessed to classify, seek solution and management, after assessing quick Response and implementation of solution and the last phase is Monitoring of the risk management progress and Learning from this experience that such problem never occur again. Whole process is to be well Communicated during the entire process of risk management if it is to be managed efficiently.The International Organization for Standardization (ISO) has defined risk management as the identification, analysis, evaluation, treatment (control), monitoring, review and communication of risk. These activities can be applied in a systematic or ad hoc manner. The presumption is that systematic application of these activities will result in improved decision-making and, most likely, improved outcomes.
Structure of Risk Management
Depending upon the structure and operations of organization, financial risk management can be implemented in different ways. Risk management structure defines the different layers of an organization at which risk is identified and managed. Although there are different layers or level at which risk is managed but there are three layers which are common to all. i.e.
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isk ManagementFor managing risk there are certain basic principles which are to be followed by every organization:
1. Corporate level Policies
2. Risk management strategy
3. Well-defined policies and procedures by senior management
4. Dissemination, implementation and compliance of policies and procedures
5. Accountability of individuals heading various functions/ business lines
6. Independent Risk review function
7. Contingency plans
8. Tools to monitor risks
Institutions can reduce some risks simply by researching them. A bank can reduce its credit risk by getting to know its borrowers. A brokerage firm can reduce market risk by being knowledgeable about the markets it operates in.
Functionally, there are four aspects of financial risk management. Success depends upon
A. A positive corporate culture,
No one can manage risk if they are not prepared to take risk. While individual initiative is critical, it is the corporate culture which facilitates the process. A positive risk culture is one which promotes individual responsibility and is supportive of risk taking.
B. Actively observed policies and procedures
Used correctly, procedures are powerful tool of risk management. The purpose of policies and procedures is to empower people. They specify how people can accomplish what needs to be done. The success of policies and procedures depends critically upon a positive risk culture.
C. Effective use of technology
The primary role technology plays in risk management is risk assessment and communication. Technology is employed to quantify or otherwise summarize risks as they are being taken. It then communicates this information to decision makers, as appropriate.
D. Independence or risk management professionals
To get the desired outcome from risk management, risk managers must be independent of risk taking functions within the organization. Enron’s experience with risk management is instructive. The firm maintained a risk management function staffed with capable employees. Lines of reporting were reasonably independent in theory, but less so in practice.
Internal Controls
Para one on first page of the ‘Guidelines on Internal Controls’ issued by SBP provides:
“Internal Control refers to policies, plans and processes as affected by the Board of Directors and performed on continuous basis by the senior management and all levels of employees within the bank. These internal controls are used to provide reasonable assurance regarding the achievement of organizational objectives. The system of internal controls includes financial, operational and compliance controls.”
The current official definition of internal control was developed by the Committee of Sponsoring Organization (COSO) of the Treadway Commission. In its influential report, Internal Control – Integrated Framework, the Commission defines internal control as follows:
“Internal control is a process, effected by an entity’s Board of Directors, management and other personnel, designed to provide reasonable assurance regarding the achievement of objectives in the following categories:
Effectiveness and efficiency of operations.
Reliability of financial reporting.
Compliance with applicable laws and regulations.
This definition reflects certain fundamental concepts:
Internal control is a process. It is a means to an end, not an end in itself.
Internal control is effected by people. It is not policy manuals and forms, but people at every level of an organization.
Internal control can be expected to provide only reasonable assurance, not absolute assurance, to an entity’s management and board.
Internal control should assist and never impede management and staff from achieving their objectives. Control must be taken seriously. A well-designed system of internal control is worse than worthless unless it is complied with, since the assemblance of control will be likely to convey a false sense of assurance. Controls are there to be kept, not avoided. For instance, exception reports should be followed up. Senior management should set a good example about control compliance. For instance, physical access restrictions to secure areas should be observed equally by senior management as by junior personnel.
Components of Internal Controls
Components of internal control also depend upon the structure of the business unit and nature of its operation. The COSO Report describes the internal control process as consisting of five interrelated components that are derived from and integrated with the management process. The components are interrelated, which means that each component affects and is affected by the other four. These five components, which are the necessary foundation for an effective internal control system, include:
I. Control Environment,
Control environment, an intangible factor and the first of the five components, is the foundation for all other components of internal control, providing discipline and structure and encompassing both technical competence and ethical commitment.
II. Risk Assessments,
Organizations exist to achieve some purpose or goal. Goals, because they tend to be broad, are usually divided into specific targets known as objectives. A risk is anything that endangers the achievement of an objective. Risk assessments is done to determine the relative potential for loss in programs and functions and to design the most cost-effective and productive internal controls.
III. Control Activities,
Control activities mean the structure, policies, and procedures, which an organization establishes so that identified risks do not prevent the organization from reaching its objectives.
Policies, procedures, and other items like job descriptions, organizational charts and supervisory standards, do not, of course, exist only for internal control purposes. These activities are basic management practices.
IV. Information and Communication, and
Organizations must be able to obtain reliable information to determine their risks and communicate policies and other information to those who need it. Information and communication, the fourth component of internal control, articulates this factor.
V. Monitoring
Life is change; internal controls are no exception. Satisfactory internal controls can become obsolete through changes in external circumstances. Therefore, after risks are identified, policies and procedures put into place, and information on control activities communicated to staff, superiors must then implement the fifth component of internal control, monitoring.
Even the best internal control plan will be unsuccessful if it is not followed. Monitoring allows the management to identify whether controls are being followed before problems occur. In the same way, management must review weaknesses identified by audits to determine whether related internal controls need revision.
Tools for Monitoring of Risk
Management Information System
M.I.S or Management Information System is the collection and analysis of data in order to support management’s decision with respect to the achievement of objectives mentioned in the policies and procedures and the control of various risks therein.
It is this area i.e. M.I.S, where I.T can play a vital and effective role as with the help of I.T large information may be analyzed efficiently and with accuracy, so that effective decision may be taken by the management without the loss of any time.
Asset-Liability Management Committee (ALCO)
In most cases, day-to-day risk assessment and management is assigned to a specialized committee, such as an Asset-Liability Management Committee (ALCO). Duties pertaining to key elements of the risk management process should be adequately separated to avoid potential conflicts of interest – in other words, a financial institution‘s risk monitoring and control functions should be sufficiently independent from its risk-taking functions. Larger or more complex institutions often have a designated, independent unit responsible for the design and administration of balance sheet management, including interest rate risk. Given today’s widespread innovation in banking and the dynamics of markets, banks should identify any risks inherent in a new product or service before it is introduced, and ensure that these risks are promptly considered in the assessment and management process.
Corporate Governance Principles
Corporate governance relates to the manner in which the business of the organization is governed, including setting corporate objectives and a institution‘s risk profile, aligning corporate activities and behaviors with the expectation that the management will operate in a safe and sound manner, running day-to-day operations within an established risk profile, while protecting the interests of depositors and other stakeholders. It is defined by a set of relationships between the institution’s management, its board, its shareholders, and other stakeholders.
The key elements of sound corporate governance in a bank include:
a) A well-articulated corporate strategy against which the overall success and the contribution of individuals can be measured.
b) Setting and enforcing clear assignment of responsibilities, decision-making authority and accountabilities that are appropriate for the bank‘s risk profile.
c) A strong financial risk management function (independent of business lines), adequate internal control systems (including internal and external audit functions), and functional process design with the necessary checks and balances.
d) Corporate values, codes of conduct and other standards of appropriate behavior, and effective systems used to ensure compliance. This includes special monitoring of a bank‘s risk exposures where conflicts of interest are expected to appear (e.g., relationships with affiliated parties).
e) Financial and managerial incentives to act in an appropriate manner offered to the board, management and employees, including compensation, promotion and penalties. (i.e., compensation should be consistent with the bank’s objectives, performance, and ethical values).
f) Transparency and appropriate information flows internally and to the public.
Tools mentioned above can be utilized in identifying and managing different risks in the following manner:
I. Credit Risk
It is managed by setting prudent limits for exposures to individual transaction, counterparties and portfolios. Credits limits are set by reference to credit rating established by Credit Rating Agencies, methodologies established by Regulators and as per Board’s direction.
o Monitoring of per party exposure
o Monitoring of group exposure
o Monitoring of bank’s exposure in contingent liabilities
o Bank’s exposure in clean facilities
o Analysis of bank’s exposure product wise
o Analysis of concentration of bank’s exposure in various segments of economy
o Product profitability reports
II. Market
Financial Institutions should also have an adequate system of internal controls to oversee the interest rate risk management process. A fundamental component of such a system is a regular, independent review and evaluation to ensure the system’s effectiveness and, when appropriate, to recommend revisions or enhancements.
Interest rate risk should be monitored on a consolidated basis, including the exposure of subsidiaries. The institution’s board of directors has ultimate responsibility for the management of interest rate risk. The board approves the business strategies that determine the degree of exposure to risk and provides guidance on the level of interest rate risk that is acceptable to the institution, on the policies that limit risk exposure, and on the procedures, lines of authority, and accountability related to risk management. The board also should systematically review risk, in such a way as to fully understand the level of risk exposure and to assess the performance of management in monitoring and controlling risks in compliance with board policies. Reports to senior management should provide aggregate information and a sufficient level of supporting detail to facilitate a meaningful evaluation of the level of risk, the sensitivity of the bank to changing market conditions, and other relevant factors.
The Asset and Liability Committee (ALCO) plays a key role in the oversight and coordinated management of market risk. ALCOs meet monthly. Investment mandates and risk limits are reviewed on a regular basis, usually annually to ensure that they remain valid.
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isk Management and Risk BudgetsA risk budget establishes the tolerance of the board or its delegates to income or capital loss due to market risk over a given horizon, typically one year because of the accounting cycle. (Institutions that are not sensitive to annual income requirements may have a longer horizon, which would also allow for a greater degree of freedom in portfolio management.). Once an annual risk budget has been established, a system of risk limits needs to be put in place to guard against actual or potential losses exceeding the risk budget. There are two types of risk limits, and both are necessary to constrain losses to within the prescribed level (the risk budget).
The first type is stop-loss limits, which control cumulative losses from the mark-to-market of existing positions relative to the benchmark. The second is position limits, which control potential losses that could arise from future adverse changes in market prices. Stop-loss limits are set relative to the overall risk budget. The allocation of the risk budget to different types of risk is as much an art as it is a science, and the methodology used will depend on the set-up of the individual investment process. Some of the questions that affect the risk allocation include the following:
* What are the significant market risks of the portfolio?
* What is the correlation among these risks?
* How many risk takers are there?
* How is the risk expected to be used over the course of a year?
Compliance with stop-loss limits requires frequent, if not daily, performance measurement. Performance is the total return of the portfolio less the total return of the benchmark. The measurement of performance is a critical statistic for monitoring the usage of the risk budget and compliance with stop-loss limits. Position limits also are set relative to the overall risk budget, and are subject to the same considerations discussed above. The function of position limits, however, is to constrain potential losses from future adverse changes in prices or yields.
III. Liquidity Risk
The Basel Committee has established certain quantitative standards for internal models when they are used in the capital adequacy context.
a. Allocation of capital into various types of business after taking into account the operational risks i.e. disruption of business activity, which has especially increased due to excessive EDP usage
b. Allocation of the capital is also made amongst various products i.e. long term, short term, consumer, corporate etc. considering the risks involved in each product and its life cycle to avoid any liquidity crunch for which gap analysis is made. This is the job of ALCO
c. For instance Contingent liabilities not more than 10 times of capital,
d. Fund based not more than 6 times of capital
e. Capital market operations not more than 1 time of capital
f. However these limits cannot exceed the regulations.
g. Parameters of controls
o Regulatory Requirements
o Board’s directions
o Prudent practices
For liquidity management organizations are compelled to hold reserves for unexpected liquidity demands. The ALCO has responsibility for setting and monitoring liquidity risk limits. These limits are set by Regulatory Bodies and under Board’s directions keeping in mind the market condition and past experience.
The Basel Accord comprises a definition of regulatory capital, measures of risk exposure, and rules specifying the level of capital to be maintained in relation to these risks. It introduced a de facto capital adequacy standard, based on the risk-weighted composition of a bank’s assets and off-balance-sheet exposures that ensures that an adequate amount of capital and reserves is maintained to safeguard solvency. The 1988 Basel Accord primarily addressed banking in the sense of deposit taking and lending (commercial banking under US law), so its focus was credit risk.
In the early 1990s, the Basel Committee decided to update the 1988 accord to include bank capital requirements for market risk. This would have implications for non-bank securities firms.
Thus, the formula for determining capital adequacy can be illustrated as follows:
= Tier I + Tier 2 + Tier 3 *- 8% .
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isk-weighted Assets + (Market Risk Capital Charge x 12.5)IV. Operational Risk
To manage this risk documented policies and procedures are established. In addition, regular training is provided to ensure that staffs are well aware of organization’s objective, statutory requirements.
o Reporting of major/ unusual/ exceptional transactions with respect to ensuring the compliance of the principles of KYC and Anti-money laundering measure
o Analysis of system problems
Window Security
In the process of securing our homes, in many cases people don’t think about securing their windows. Well, there are security measures that are designed to protect windows from home invaders and burglars. People should decide on what kind of security to get for their windows depending on factors such as. What kind of window security is available in the market? Which windows are more at risk from intruders? Are those on the first floor or the second floor more at risk from home invaders? If my home is facing the street or a fenced off back yard am I more at risk?
How much will it cost to install security features on the windows and also the look of the security features? All these are factors that the consumer will put into consideration when going into the market. Recommendations from other consumers can be found on the internet as well as in store reviews. The experts can also recommend to you, the buyer the product best suited to your budget and needs. These products can be found in home improvement stores, on the internet and in specialized security stores. You can also customize or add on new features to your window security, so many times, you have to look at more than one product. You can combine more than one security feature when getting your security installed.
This means that when looking for window security, the buyer needs to take their time and explore all their options, again depending on what their needs and what their budget allows. Once the purchase has been done, the installation should be done professionally and the buyer should as always ensure they understand the way the security features work. Providing window security for your home is very important and that is why you must always set up a security system that will protect you and your home.
Cyberethics (Information System Ethics)
In order to examine ethical issues, it is first necessary to define ethics. Today, we regard ethics as a “rational process founded on certain principles.” However, I believe a definition that is more applicable to this project is the ethical theory that existed in ancient Greece. There, ethics was the study of what was good for both the individual and society. We will look at some online issues and how they may be good and/or bad for society. Cyberethics is quite simply the study of ethics on the Internet.
“Ethics begins when elements within a moral system conflict.”
Cyberethics is often called as Information System Ethics. Information System ethics can be defined as “The study of moral, legal, ethical issues involving the use of information and communication technologies”
There are many unique challenges we face in this age of information. They stem from the nature of information itself. Information is the means through which the mind expands and increases its capacity to achieve its goals, often as the result of an input from another mind. Thus, information forms the intellectual capital from which human beings craft their lives and secure dignity.
However, the building of intellectual capital is vulnerable in many ways. For example, people’s intellectual capital is impaired whenever they lose their personal information without being compensated for it, when they are precluded access to information which is of value to them, when they have revealed information they hold intimate, or when they find out that the information upon which their living depends is in error. The social contract among people in the information age must deal with these threats to human dignity. The ethical issues involved are many and varied in Information System Ethics.
Ethics is required in information Systems to overcome the following ethical issues.
Privacy: What information about one’s self or one’s associations must a person reveal to others, under what conditions and with what safeguards? What things can people keep to themselves and not be forced to reveal to others?
Accuracy: Who is responsible for the authenticity, fidelity and accuracy of information? Similarly, who is to be held accountable for errors in information and how is the injured party to be made whole?
Property: Who owns information? What are the just and fair prices for its exchange? Who owns the channels, especially the airways, through which information is transmitted? How should access to this scarce resource be allocated?
Accessibility: What information does a person or an organization have a right or a privilege to obtain, under what conditions and with what safeguards?
Information System ethics explores and evaluates:
o the development of moral values in the information field,
o the creation of new power structures in the information field, information myths,
o hidden contradictions and intentionality’s in information theories and practices,
o the development of ethical conflicts in the information field. etc
Now let us take a look at privacy by the following examples. A few years ago, Florida lawmakers gave the go ahead to have monitors stationed in bathrooms at Tallahassee Community College to determine if the facilities were being underutilized. Students and faculty vehemently protested that the monitors violated their privacy. State officials said that the value of the information gained through the study was more important than the threat to privacy. Other issues like collection of private data of the users using internet by monitoring the traffic is strongly related to one’s policy as that information can be further used for illegal purposes. These types of privacy issues are needed to be addressed properly so that they should not exploit one’s freedom. One issue that I kept thinking about when I was constructing my Web page was whether it was ethical to lift an image from someone’s home page and use it on my Web page without crediting the source. Such ethical issues come under property.
One reason that topics such as online gambling and pornography have become such firestorms of controversy in cyberspace is the simple fact that so many people have access to the Web sites. Simply put, if no one had access to online pornography no one would care. With this another issue “Censorship” comes which should be deal in efficient way as it is not easy to implement. Ethical issues can also be religious, moral or any other.These type of issues are not easy to deal with.
Similarly, let us take China into consideration on the issue of “Censorship”. China has implemented the methods of censoring the internet that are somewhat harder to bypass for people generally unfamiliar with the way internet works. There is ,for example internet censorship as implemented in China–using a list of banned words that are censored on the fly. As users in china request a webpage , the incoming page is first inspected by government servers n blocked if a banned term such as “Democracy” is present. Human censors are also actively looking at what people browse on the internet, and block websites as they see fit.
Crimes on internet are also increasing in a continuous manner.Computer crime is a general term that embraces such crimes as phishing, credit card frauds, bank robbery, Industrial espionage, child porn, kidnapping children via chat rooms, scams, cyber terrorism, viruses, spam and so on. All such crimes are computer related and facilitated crimes. Many recent cases seen like Microsoft’s website was brought down for a little time resulting in a huge loss to Microsoft. Similarly, NUST, one of the best considered university in Pakistan got Hacked and redirected to another domain. Credit card fraud have grown in an increasingly manner. Leakage of Military information from internet is another internet crime. Software known as google earth, which shows information about different places including military land or can lead to robbery planning, is becoming an ethical issue around the world. Many people protest against this leakage of information but still one can’t deny that it is one of the major enhancements in Information Technology.
The question about how to police these crimes has already been constructed, but this task is turning out to be an uphill battle. Since the first computer crime law, the Counterfeit Access Device and Computer Fraud and Abuse Act of 1984, the governments have been trying to track down and stop online criminals. The FBI of different countries have tried many programs and investigations in order to deter Internet crime, like creating an online crime registry for employers .The reality is that Internet criminals are rarely caught. One reason is that hackers will use one computer in one country to hack another computer in another country. And that criminal isn’t working alone. Loosely organized groups–which security experts call “Web gangs”–conduct much of the illegal activity online. The structure of Web gangs may be patterned on that of traditional organized crime, in which the members of the group may never come into contact with one another and may never be aware of who they are working for.
Conclusion:
We live in an exciting time in history. The widespread availability of computers and Internet connections provides unprecedented opportunities to communicate and learn. Unfortunately, although most people use the Internet as a powerful and beneficial tool for communication and education, some individuals exploit the power of the Internet for criminal or terrorist purposes.
We can minimize the harm that such individuals do by learning ourselves, and teaching young people, how to use the Internet safely and responsibly. The term “cyberethics” refers to a code of safe and responsible behavior for the Internet community. Practicing good cyberethics involves understanding the risks of harmful and illegal behavior online and learning how to protect ourselves, and other Internet users, from such behavior. It also involves teaching young people, who may not realize the potential for harm to themselves and others, how to use the Internet safely and responsibly.
How to Fix Rundll32.exe?
What Is Rundll32.exe?
Rundll32.exe is an important process of your windows operating system. The process rundll32.exe executes dll files and puts their libraries into your system’s memory. Without this process your computer would become instable and very slow.
The process runs from your system directory C:\windows\system32. If it executes or runs from a different location it is most likely a virus or trojan horse. You should scan your computer immediately with a virus scanner. Viruses using the name rundll32.exe are W32.Miroot.Worm. Backdoor.Lastdoor, and Trojan.StartPage (among others).
Fix Rundll32.exe
If a virus, such as the Netsky, destroys your rundll32.exe or, if for some other reason, your rundll32.exe is corrupt or gets accidentally removed, you need to take the following action:
Locate a Copy of Rundll32.exe on Your System
Check if you find a copy of rundll32.exe in the folder C:\windows\system32\dllcache or in C:\windows\ServicePackFiles\i386. If this is the case, go ahead and copy rundll32.exe to the system folder C:\windows\system32
If you don’t find a copy on your system, you can try to find the file on your windows installation disks. Lastly, you could simply re-install windows. However, this would be very time-consuming and you might lose all your data. So this would be the last resort.
First of All Run a System Repair Tool to Fix Rundll32.exe
There are various tools available on the Internet that scan, analyze, and fix your computer. Besides fixing your rundll32.exe, these tools will remove any registry errors, remove invalid shortcuts and duplicate files, repair DLL files, and remove startup and runtime errors.
Human Resource Information System – HRIS
Human Resource Information Systems
The purpose of this paper is to identify other companies who have faced similar human resources issues in regards to information technology. Through benchmarking different companies we can learn how other companies have handled certain human resources issues related to information technology, information systems, new technology, and data security. An overall analysis has been completed using research on IBM Europe, Ameriprise Financial, Terasen Pipelines, Shaw’s Supermarkets, CS Stars LLC, IBM, WORKSource Inc., and Toshiba America Medical Systems, Inc. This paper also includes eight synopses of companies facing similar issue to those in the reading.
New Technology
With the changing world and constant new technology that is available, managers need to be aware of the technology that will increase effectiveness in their company. Human resource information systems (HRIS) have increasingly transformed since it was first introduced at General Electric in the 1950s. HRIS has gone from a basic process to convert manual information keeping systems into computerized systems, to the HRIS systems that are used today. Human resource professionals began to see the possibility of new applications for the computer. The idea was to integrate many of the different human resource functions. The result was the third generation of the computerized HRIS, a feature-rich, broad-based, self-contained HRIS. The third generation took systems far beyond being mere data repositories and created tools with which human resource professionals could do much more (Byars, 2004).
Many companies have seen a need to transform the way Human Resource operations are performed in order to keep up with new technology and increasing numbers of employees. Terasen Pipelines moved its headquarters from Vancouver to Calgary to be closer to the oil and realized a major growth in employees. In the past recording keeping was done on paper and with spreadsheets. Mangers at Terasen realized that there was a need to change to a more computerized system and looked into different HRIS vendors. By making the move to a HRIS system, Terasen is able to keep more accurate records as well as better prepare for future growth. Another company that saw the benefits of keeping up with new technology is WORKSource Inc. To meet the challenge of handling 100 new employees, WORKSource Inc. acquired Web-based technology programs from GHG Corp. like electronic pay stub, electronic timesheet software, time-off system, and human resource information system (“Tips,” 2006). By adapting these new programs, WORKSource was able to reduce waste and cost.
The Internet is an increasingly popular way to recruit applicants, research technologies and perform other essential functions in business. Delivering human resource services online (eHR) supports more efficient collection, storage, distribution, and exchange of data (Friesen, 2003). An intranet is a type of network used by companies to share information to people within the organization. An intranet connects people to people and people to information and knowledge within the organization; it serves as an “information hub” for the entire organization. Most organizations set up intranets primarily for employees, but they can extend to business partners and even customers with appropriate security clearance (Byars & Rue, 2004).
Applications of HRIS
The efficiency of HRIS, the systems are able to produce more effective and faster outcomes than can be done on paper. Some of the many applications of HRIS are: Clerical applications, applicant search expenditures, risk management, training management, training experiences, financial planning, turnover analysis, succession planning, flexible-benefits administration, compliance with government regulations, attendance reporting and analysis, human resource planning, accident reporting and prevention and strategic planning. With the many different applications of HRIS, it is difficult to understand how the programs benefit companies without looking at companies that have already benefited from such programs.
One such company is IBM. IBM has a paperless online enrollment plan for all of its employees. Not only has the online enrollment saved the company 1.2 million per year on printing and mailing costs, the employees enjoy working with the online plan. “Since we began offering online enrollment, we’ve learned that employees want web access,” Donnelly [Senior Communications Specialist] says, so they can log on at home rather than through the company intranet. So the company has been working to put in place a web-based enrollment system that employees and retirees can access from anywhere (Huering, 2003). By utilizing the flexible-benefits application HRIS has to offer, IBM was able to cut costs and give employees the freedom to discover their benefits on their own time and pace.
Another company that has taken advantage of HRIS applications is Shaw’s Supermarkets. In order for Shaw’s to better manage its workforce, the company decided it was time to centralize the HR operations. After looking at different options, Shaw’s decided to implement an Employee Self Service (ESS) system. The use of self-service applications creates a positive situation for HR. ESS gives HR more time to focus on strategic issues, such as workforce management, succession planning, and compensation management, while at the same time improving service to employees and managers, and ensuring that their data is accurate. With this solution, employees have online access to forms, training material, benefits information and other payroll related information (Koven, 2002). By giving employees access to their personal information and the ability to update or change their information as needed, HR was given more time to focus on other issues. Understanding the different applications HRIS has to offer will give companies the chance to increase employee efficiency and reduce costs.
Measuring the Effectiveness of HRIS
The evaluation should determine whether or not the HRIS has performed up to its expectations and if the HRIS is being used to its full advantage (Byars & Rue, 2004). One of the most significant challenges faced by public personnel executives today is measuring the performance of their human resources information system (HRIS) In order to justify the value-added contribution of the HRIS to accomplishing the organization’s mission (Hagood & Friedman, 2002). Implementing an HRIS program may seem a necessary stem for a company, but unless it will be an effective tool for HR operations, it will not help increase efficiency and may hinder it instead.
One company that implemented a HRIS system is Toshiba America Medical Systems, Inc. (TAMS). TAMS put all employee benefits information online and created an open enrollment option when TAMS changed healthcare providers. Almost immediately upon rolling out the UltiPro portal [new HRIS technology] to employees, TAMS began seeing improvements, with an estimated 70% increase in open enrollment efficiency (Wojcik, 2004). By determining the efficiency of the new program, TAMS was able to realize the benefits of the new HRIS system.
Security of HRIS
The privacy of employee information has become a major issue in recent years. With identity theft becoming a common problem, employees are becoming more sensitive about who sees their personal information, and the security it is kept in. By making sure employee information that is kept in the HRIS is relevant to the company and making sure there is limited access (password protection) to such information, companies can make its employees more secure with the safety of their information. Whether electronic or paper, employee files deserve to be treated with great care. Establishing security and end-user privileges calls for a balance of incorporating, HR policy, system knowledge and day-to-day operations (O’Connell, 1994).
One company that faced a major security issue was CS Stars, LLC. CS Stars lost track of one of its computers that contained personal information that included names, addresses and social security numbers of workers compensation benefits. The bigger problem was that CS Stars failed to notify the affected consumers and employees about the missing computer. Though the computer was retrieved and no information seemed to have been harmed, many employees lost their sense of security with the company. New York’s Information Security Breach and Notification Law, effective in December 2005, requires businesses that maintain computerized data which includes private information to notify the owner of the information of any breach of the security of the system immediately following discovery, if the private information was, or is reasonably believed to have been, acquired by a person without valid authorization (Cadrain, 2007).
Another company that experienced a breach in security is Ameriprise Financial. In late 2005, a computer that contained personal information on clients and employees was stolen. Because many of the employees at Ameriprise take their computers between work and home, the company determined there was a need to put more security into those computers. Ameriprise made sure all employees had the new security suite installed on their computers. By responding quickly to the need for more security, Ameriprise made sure all information is being kept secure. Making sure employees information is kept as secure as possible there will be more trust in the company and the HR employees working with that information.
Conclusion
IBM, Terasen Pipeline, CS Stars LCC, and Toshiba America Medical Systems, Inc. are good examples of companies facing issues similar to human resources information technology and human resources information systems. All of these companies know the importance of new technology, human resources information systems, and data security. The remainder of this paper provides synopses of more companies facing human resources issues, how the company responded to the issues, and the outcomes of the company’s responses.
Companies Benchmarked
IBM Europe
The Situation:
IBM is a global organization offering research, software, hardware, IT consulting, business and management consulting, ring and financing. It employs around 340,000 people, speaking 165 languages across 75 countries, and serving clients in 174 countries. In January 2007, IBM established a separate “new media” function within its corporate communication department. IBM main goal is to educate, support, and promote programs that utilize social media. IBM Europe decided to expand internal communication by blogging guidelines. The recognition was that blogging was already happening among IBMers, just in an unregulated way. In a similar way, institutionalizing a function to deal specifically with new media is not a corporate move, or establishing from scratch. It’s a response to the issues already emerging in the company. Now that those technologies are here, people are using them, they’re growing and there here to stay-we’re just going to put some structure around them so that we can try to optimize their use.” The users decide what technologies they want to use and how they want to use them. That main idea is that IBM understands that they must remember to respect the fact that social media are social. IBM had the need to connect its 340,000 global employees more effectively.
The Response:
IBM’s intent around social media has now been officially formalized. From January 22 2007, the company established a separate “new media” function within its corporate communication department. “Its remit: To act as expert consultants inside and outside IBM on issues relating to blogs, wikis, RSS and other social media applications. The main idea is to educate, support and promote programs that utilize these tools. IBM has a history of being a t the forefront of technology based corporate communication. From the multimedia brainstorming “WorldJam” that made news headlines back in 2001 in which 50,000 employees worldwide joined a real time, online idea-sharing session about the company’s direction. IMB has always prepared itself to use breakthrough technologies to establish a two-way dialogue with its employees. The need for social media was necessary and could no longer wait.
The Outcome:
In the last few years IBM has been recognized as being the vanguard of social-media use: IBM was on of the first Fortune 500 companies to get behind collaborative wikis, published internal blogging guidelines as far back as 2003, and is now moving fast beyond RSS and podcasts into videocasting and “virtual world” technologies like Second Life. The intranet search facility extends to all areas of the site, including new media aspects. When an employee logs onto their portal an executes a key word search, the results they get back not only come from the main intranet pages, but include results from IBM forums, wikis, blogs and podcast/videocasts tags. IMB has an understanding that employees are no longer staying in a company their entire lives. It’s just not like that any more. In Belgium for example over 50 percent of 2,300 employees have been there fewer than five years. The company has come to the conclusion that with an increasingly young and mobile workforce, the likelihood is that an employee population full of a younger generation, for whom these tools are part and parcel of life, is not that far away. In years to come IBM will have to deal with employee base for which blogging is just the natural way to interact over a web platform. IBM has created centralized platforms for most tools that fall under its remit, which includes wikis. For Philippe Borremans, new media lead Europe for IBM, has the potential business applications of a wiki cover two broad benefits: Collaborating and knowledge sharing. IBM has scored some notable successes on both fronts in the near 5000 wiki pages now up and running in the organization. The company has been a huge pick-up in interest in podcasting over the last 18 months writing can seem such a technical skill, whereas people feel they can talk more freely than they can write. One of the most consistently popular IBM podcasts, with over 20,000 downloads a week.
Ameriprise Financial
The Situation:
The Department of Justice survey estimates that 3.6 million U.S. households were victims of identity theft in 2004. Trafficking in personal date goes beyond U.S. borders: the New York Times reports that stolen financial information is often distributed among participants of online trading boards, and the buyers are frequently located in Russia, Ukraine, and the Middle East. One reason clients are concerned about data security is the widespread publicity generated by breaches at financial services firm. In late December 2205, an Ameriprise Financial employee’s laptop that contained unencrypted data on approximately 230,000 customers and advisors was stolen from a car. Other financial services firm, including Citigroup and Bank of America, also acknowledge large-scale customer data losses in 2005. President of NCS, Rita Dew, a compliance consulting firm in Delray Beach, Florida, says that the Securities and Exchange Commission requires investment advisors to have policies and procedures that address the administrative, technical, and physical safeguards related to client records and information.
The Response:
Ameriprise Financial had to fight back and had to implement “layers of protection.” It is important for employees who their primary business computer, and employees regularly transport the computer between home, office, and meeting sites. The vulnerability of this arrangement and the need for a safety software program is much needed.
The Outcome:
Employees who are transporting lab tops should install the Steganos Security Suite on their computer. This software allows employees to create an encrypted virtual drive on the laptop that serves as data storage safe. Employees stores all client related data and tax preparation software database on the encrypted drive, which employees has set up with one gigabyte of storage space. The best thing is that when an employee turns off the computer the information is stored “safe”, the software automatically encrypts the virtual drive’s data. The software also generates encrypted backup files, which employees store on CDs in a fireproof safe. This should keep the data secure if any employee’s laptop is stolen or if the drive is removed from the laptop. Other financial advisors are relying on encryption both in and out of the office. Other programs that are being used to protect client’s information are RAID Level 1 system to store data on the drives that are encrypted with WinMagic’s SecureDocs software. Encryption ensures that anyone who steals the computer will be absolutely unable to read the data, even by connecting it to another computer as a “slave drive. This has given many financial advisors the greatest peace of mind.
Terasen Pipelines
The Situation:
Terasen Pipelines is a subsidiary of Terasen Inc. located in Vancouver, Canada and is located in several provinces and U.S. states. In 2001 the company changed its headquarters to Calgary to be closer to the oil. With the big move, the company went through a growth spurt. With the company in many different locations and the growing numbers of employees, the HR department saw a need to find a new system to keep more accurate records.
The Response:
In the past Terasen had kept records on paper and with spreadsheets and with the growth of the company, this system does not work as well as in the past. In order to compensate for future growth, Terasen began to look into HRIS companies to help with the HR operations. After researching different companies, Hewitt’s application service provider model with eCyborg was found to be the right fit.
The Outcome:
Although there was difficulty adapting to a new way of recordkeeping, Terasen was able to find a system that will help support the current and future growth of the company. Fortunately, some of the HR staff had experience working with an HRIS and were able to help their colleagues imagine new processes, as aided by a system. One theme often voiced throughout this process was: “You guys don’t know how hard we’re working when we can make it so much easier with a system that could do a lot of this for us. You don’t always have to run to the cabinet for the employee file just to get basic information. It can all be at your fingertips.” (Vu, 2005). In order to help Terasen ease the HR burden of implementing a new HR system, the management of Terasen was convinced to look for a vendor to help implement and maintain a HRIS system. This system has helped Terasen better prepare for current and future growth.
Shaw’s Supermarkets
The Situation:
Shaw’s Supermarkets is the second largest supermarket chain in New England. With a workforce of 30,000 located at 180 stores throughout six states, Shaw’s HR staff is responsible for managing employees’ personal data. Their employee mix includes approximately 70 percent part-time employees, consisting of students, senior citizens, second-job part-timers, and career part-timers. One third of the workforce is made up of union associates, and Shaw’s staff oversees the company’s involvement with three unions and six separate contracts (Koven, 2002). In order to help manage the workforce, the HR staff became interested in centralizing its HR operations.
The Response:
In order to centralize HR operations Shaw’s decided to implement an ESS (employee self-service) solution. The use of self-service applications creates a positive situation for HR. ESS gives HR more time to focus on strategic issues, such as workforce management, succession planning, and compensation management, while at the same time improving service to employees and managers, and ensuring that their data is accurate. With this solution, employees have online access to forms, training material, benefits information and other payroll related information.
The Outcome:
Shaw’s has had positive feedback since implementing the ESS solution. “The reaction from our employees has been extremely positive,” Penney, VP of Compensation and Benefits, says. “We even had a significant increase in our medical coverage costs, and it was almost a non-issue because the online enrollment featured the plan choices, the employee cost, and the company subsidy. An employee self-service application makes it very easy for them to understand their contributions and coverage options. I received several e-mails from employees saying this was a great change and how easy ESS was, which the case is not often when employees are selecting their benefit options.” (Koven, 2002). By giving the employees more access to their information they are able to see the benefit choices available to them. Employees are also able to update their information online, which helps reduce the paperwork of the past. Shaw’s has also seen improvement in productivity because employees are updating information at home, not during work hours.
CS Stars, LLC
The Situation:
New York Attorney General Andrew Cuomo has announced that New York State has reached its first settlement with a company charged with failing to notify consumers and others that their personal data had gone missing. Cuomo’s office, which enforces the state’s 2005 Information Security Breach and Notification Law, charged CS STARS LLC, a Chicago-based claims management company, with failing to give notice that it had lost track of a computer containing data on 540,000 New Yorkers’ workers’ comp claims.
The Response:
The owner of the lost data, which had been in the custody of CS STARS, was the New York Special Funds Conservation Committee, an organization that assists in providing workers’ comp benefits under the state’s workers’ comp law. On May 9, 2006, a CS STARS employee noticed that a computer was missing that held personal information, including the names, addresses, and Social Security numbers of recipients of workers’ compensation benefits. But CS Stars waited until June 29, 2006, to notify Special Funds and the FBI of the security breach. Because the FBI declared that notice to consumers might impede its investigation, CS STARS waited until July 8, 2006, to send notices to the 540,000 New Yorkers affected by the breach. On July 25, 2006, the FBI determined an employee, of a cleaning contractor, had stolen the computer, and the missing computer was located and recovered. In addition, the FBI found that the data on the missing computer had not been improperly accessed.
The Outcome:
New York’s Information Security Breach and Notification Law, effective in December 2005, requires businesses that maintain computerized data which includes private information to notify the owner of the information of any breach of the security of the system immediately following discovery, if the private information was, or is reasonably believed to have been, acquired by a person without valid authorization. The law affects not only businesses in their dealings with their customers, but employers in their role as custodians of employees’ personal data. (Cadrain)
Without admitting to any violation of law, CS STARS agreed to comply with the law and ensure that proper notifications will be made in the event of any future breach. The company also agreed to implement more extensive practices relating to the security of private information. CS STARS will pay the Attorney General’s office $60,000 for costs related to this investigation. (Cadrain)
IBM
The Situation:
IBM’s paperless online enrollment system, introduced in 1999, has proved to be a winner for both the company’s 135,000 active U.S. employees and the company, according to Cathleen Donnelly, senior communications specialist at company headquarters in Armonk, N.Y. The company saves $1.2 million per year on printing and mailing costs alone, Donnelly says, and the employees’ can take advantage of a variety of technologies to learn about issues, research program information and access decision support tools from their desktop computers. (Heuring, 2002)
The Response:
One of those tools, a personal medical cost estimator, enables employees to calculate potential out-of-pocket health care expenses under each of the plan options available to them, Donnelly says. Employees log in personally and are greeted by name and with important information regarding their benefits enrollment, such as the deadlines and when changes take effect. They automatically get access to health plans that are available to them, and the calculator lets them compare estimated benefit amounts for each plan.
“Employees can select the health care services they expect to use in a particular year, estimate expected frequency of use, and calculate potential costs under each plan option,” Donnelly says. “The feedback that we’ve received from employees tells us that this tool has really helped them to make a comparison between plans based on how they consume medical services.” The calculator shows both IBM’s costs and the employee’s. (Heuring, 2002)
The Outcome:
“Since we began offering online enrollment, we’ve learned that employees want web access,” Donnelly says, so they can log on at home rather than through the company intranet. So the company has been working to put in place a web-based enrollment system that employees and retirees can access from anywhere.
Employees can get summary information on the plans, drill down into very specific details and follow links to the health care providers for research. Donnelly says the system has received high marks for convenience because employees can “get in and out quickly.”
WORKSource Inc.
The Situation:
To meet the challenge of handling 100 new employees, WORKSource Inc. acquired Web-based technology programs from GHG Corp. like electronic paystub, electronic timesheet software, time-off system, and human resource information system (“Tips,” 2006). These tools enabled CEO Judith Hahn to handling payroll procedures efficiently and effectively.
The Response:
WORKSource has eight workforce centers, with approximately 108 employees, located throughout a six-county region. Previously, payroll, benefits, and human resources for those employees were processed and managed by a Professional Employer Organization. The company also has 52 administrative staff in its headquarters office. When the contract with the PEO terminated on June 30, 2006, those 108 employees were immediately moved to the payroll of WORKSource, which meant Hahn’s workload more than doubled effective July 2006 (“Tips,” 2006).
Hahn, in an interview with PMR, said she relied on LEAN to help get a handle on what needed to change for her to manage the increased workload. Two years earlier, Hahn’s CEO had introduced her to LEAN, a Japanese management concept of eliminating wasteful steps and motion when completing processes. “I began to read as much as possible about LEAN and joined an HR LEAN focus group” (“Tips,” 2006).
The Outcome:
Mastering the concepts of LEAN led Hahn to develop and apply her own acronym of “REASON” to her department’s payroll and HR processes. Review the process: map payroll tasks from start to finish. Eliminate waste: determine how to complete a payroll task most efficiently without unnecessary steps. Analyze alternatives: research and evaluate the applicability of new technology. Sell innovations to management: document the return on investment of each innovation. Open the lines of communication: communicate openly—and often—with all stakeholders, including employees and top management. Never allow negativity: make change simple and fun. Give employees plenty of encouragement and time to learn (“Tips,” 2006). Judith Hahn was able to implement the right human resource functions using information systems.
Toshiba America Medical Systems Inc.
The Situation:
Lynda Morvik, director of benefits and human resources information systems at Tustin, California-based Toshiba America Medical Systems Inc. (TAMS), thought it would make sense to add a benefits communication component to it. By having all the benefit information online, the TAMS employee handbook would also be a living document, enabling Morvik to make changes when necessary. Such was the case halfway through the project, when TAMS changed health care plans from Aetna Inc. to United Health Group Inc (Wojcik, 2004).
The Response:
TAMS, an independent group company of Toshiba Corporation and a global leading provider of diagnostic medical imaging systems and comprehensive medical solutions, such as CT, X-ray, ultrasound, nuclear medicine, MRI, and information systems, had been using a payroll service bureau and an in-house solution for HR that didn’t include easy-to-use consolidated reporting or an employee portal. After evaluating UltiPro alongside several enterprise resource vendors, TAMS selected Ultimate Software’s offering and went live in September 2002 after an on-time and on-budget implementation. Almost immediately upon rolling out the UltiPro portal to employees, TAMS began seeing improvements, with an estimated 70% increase in open enrollment efficiency (Wojcik, 2004).
The Outcome:
In an effort to expand the usage of the Web beyond the benefits enrollment process, TAMS has posted a library of documents and forms on its HR portal, including the benefits handbook, which garnered a 2004 Apex Award for publication excellence. That same year, Business Insurance magazine also gave TAMS the Electronic Benefit Communication (EBC) award for outstanding achievement in communicating employee benefits programs over the Web. To continue elevating its use of Ultimate Software’s HRMS/payroll solution, TAMS modified the UltiPro portal to meet the imaging company’s unique needs (Wojcik, 2004). It was completely integrated with several proprietary applications created to address compensation and performance management issues so that TAMS employees have a central location for comprehensive workforce and payroll information from a Web browser that they can access with a single sign-on (Wojcik, 2004).
References
Byars, Lloyd L. & Rue, Leslie W. (2004). Human Resource Management, 7e. The McGraw-Hill Companies.
Cadrain, Diane (2007). New York: Company Settles Data Breach Charges. Retrieved June 3, 2007 from [http://www.shrm.org/law/states/CMS_021505.asp#P-8_0]
Clarifying IBM’s Strategic mission for social media (2007). Strategic Communication
Management. Retrieved June 1, 2007 from
http://proquest.umi.com/pqdweb?index=17&did=1263791161&SrchMode=1&sid=2&Fmt=4&clientld=2606&RQT=309&VName=PQD.
Friesen, G. Bruce (2003). Is your client ready for eHR? Consulting to Management, 14(3), 27. Retrieved June 3, 2007 from ProQuest Database.
Hagood, Wesley O. & Friedman, Lee ( 2002). Using the balanced scorecard to measure the performance of your HR information system. Public Personnel Management, 31(4), 543-58. Retrieved June 3, 2007 from ProQuest Database.
Heuring, Linda (2003). IBM: Laying Outing Enrollment Options. Retrieved June 2, 2007 from [http://www.shrm.org/hrmagazine/articles/0803/0803heuring_paperless.asp]
Koven, Jeff (2002). Streamlining benefit process with employee self-service applications: A case study. Compensation & Benefits Management, 18(3), 18-23. Retrieved June 2, 2007 from ProQuest Database.
O’Connell, Sandra (1994). Security for HR records – human resources. HR Magazine. Retrieved June 3, 2007 from [http://findarticles.com/p/articles/mi_m349] 5/is_n9_v39/ai_16309018
Protecting Client Data (2006). Financial Planning. Retrieved June 1, 2007 from
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&VName=PQD.
Tips on Using Technology to Streamline Payroll Processes – and Cut Costs (2006). Payroll Managers Report, 6(10), 1-9. Retrieved June 2, 2007 from EBSCOhost Database.
Vu, Uyen (2005). Contracting out HRIS easy call at Terasen Pipelines. Canadian HR Reporter, 18(4), 5-9. Retrieved June 2, 2007 from ProQuest Database.
Wojcik, J. (2004). Toshiba Employee Handbook Goes Online. Business Insurance, 38(49), 18.
Retrieved June 2, 2007 from EBSCOhost Database.
7 Steps To Apply For Federal Permanent Disability
Do you know how to apply for permanent disability? Do you know how long it will take to complete your goal? Do you know you can not work at all when applying for permanent disability? If you answered yes or no do any of these questions, read on.
STEP ONE:
Call Social Security and tell them you want to start the paperwork for you being permanent disability.
Or
Make an appointment at your local Social Security office.
Or
Or you can walk in and take a number and wait.
Note: Being represented by an Attorney and having Medical assistance available will help your case.
STEP TWO:
You will receive a packet of papers in the mail to be filled out and returned to the Social Security Office by the date requested.
All your medical records will be sent for from your various medical providers.
STEP THREE:
You will receive a letter from Social Security with a date and time for you to have a medical examination by a Medical Doctor.
STEP FOUR:
If after your examination you are refused permanent disability you have a time limit to file for an appeal. The appeal form will be enclosed with your refusal letter from Social Security.
STEP FIVE:
At this time you may be represented by an attorney. Actually you may have attorney representation starting with Step One.
STEP SIX:
You will be waiting for a court date to be set. This can take months.
STEP SEVEN:
You can appeal again.
If denied again. You can start Step One over again.
Note: Each state has different requirements to be fulfilled by you. Always call your social security office and get the correct information for your personal use.
During this complete process you will not be able to work. You will have to depend on your bank account, family and friends for support to make it through the tough times.
Thank you for reading my article. Please feel free to read any of my numerous articles.
Copyright Linda E. Meckler 2007
Top 10 Jobs For Ex Felons
Getting a job with a felony on your record can be very difficult, as you probably already know. Jobs for felons are difficult to get, and most companies wont hire a felon. The ones that do generally don’t pay very well. I have compiled a list of the top 10 jobs for felons. Helpful tip: if your felony is over 7 years old, most states dont allow background checks to go back that far. If your state has this law, you can answer ‘no’ on an application.
Top 10 List
#10 Job – UPS Delivery Driver
UPS has been known to hire felons. They have moderate salaries and is a stable job to have.
#9 Job – Join the army
The army accepts people with criminal backgrounds, depending on the crime. Contact a recruiter to see if you qualify to join.
#8 Job – Truck driver
Many trucking companies are willing to hire felons. Most likely you will need to obtain a trucking license.
#7 Job – Start your own business
You can start your own business. One idea is to go to school to be a locksmith, and start your own company. Also consider getting a barber license.
#6 Job – Telephone Customer Service
Many companies are willing to hire felons for over the phone customer service, because you aren’t dealing with the people in person.
#5 Job – Temp Agency
Temp agencies can occasionally find good work for you. Many times it will be day labor, so be in good physical shape.
#4 Job – Family business
See if you can work in a family or friend’s business. They will be happy to hire you if you are willing to work hard. They will probably be glad to help you get back on your feet.
#3 Job – Independent Contractor
Many people will still use your services as long as you get the job done. If you work hard, it doesn’t matter that you have a felony on your record.
#2 Job – Privately owned small businesses
Some chain businesses have rules against accepting felons. Small business owners are more likely to accept you. They will take more of a ‘risk‘ in hiring employees, and you can be more personal with the business owner.
—> #1 Recommended Job – Online GPT Services
This is the best job for a felon, because it requires no screenings whether it be background checks, drug tests, etc. Everyone is accepted, and you work on your own time and you can work as much or as little as you want. Online ‘GPT’ or “Get-Paid-To” services offer a great way to make a few hundred dollars a month without spending a lot of time working. There are many GPT services available, some better then others. My experience with GPT services has been a great one, and I recommend this as the best job in my list of Top 10 Jobs for Felons.