Nuclear facilities need better risk management plans
US nuclear plants need to boost risk management plans for natural disasters in the wake of the Fukushima incident in Japan three years ago. A new report
by the National Academy of Sciences, commissioned by Congress, highlights the risks from earthquakes, tsunamis and floods. It recommends that the 100 nuclear facilities in the US should maintain information on the latest scientific data on risks and adjust plans accordingly. It also says that plans should allow for damage to infrastructure and dispersal of radioactive material beyond the standard 10 mile emergency planning zone. As well as natural disasters, the report also draws attention to risk from human error and terrorism.
The biggest risks to business
Geopolitical instability tops the list of risks to businesses, according to Charles Hecker, global research director of Control Risks. He says that the global economy means that “companies care less and less about borders, countries care more and more.” He cites China’s action against Vietnamese energy interests in the South China Sea and the Russia/Ukraine unrest among the current tensions. Other things on Mr Hecker’s top 10 risk list include hacking, slowing of emerging economies, local corruption laws and extremism. He also mentions ‘youth’ as a risk, or at least the growth in a young population. Although he notes that it also creates opportunity, he says that there is a risk in not keeping the younger generation educated, working, healthy and housed. Read the full story.
Australian police foil multi-million dollar cybercrime
Police in Australia have successfully smashed an attempt to steal A$570 million (US$ 537m) from the country’s businesses. A Russian organised crime gang hacked into computer systems using malware which spied on banking transactions. The malicious applications were intended to establish patterns of large transactions and then redirect the money to the gang’s bank minutes before a genuine transaction. Police say there is increasing using of ‘keystroke loggers’ which record which keys are used to log in to accounts and systems, and also ‘ransomware’ which encrypts data on your system which is only released when you make a payment to the hackers. Read the full story.
Non-Profits focus on risk management in investments
A new survey has found that more nonprofits are prioritizing the effective risk management strategies. Nearly half (46 percent) of respondents said they place greater value on positive risk-adjusted returns than on overall portfolio returns when evaluating investment success. Despite that emphasis, 44 percent are not confident that sufficient time is being spent assessing the impact of potential market shocks and nearly half (49 percent) lack confidence that the investment committee has identified all key portfolio risks. The survey found that 48 percent of nonprofits are currently using or considering the use of an outsourcing provider to help manage the portfolio with the ability to 'more promptly take advantage of market changes' and 'improve overall risk management’ given as the main reasons.