Recent news of financial misappropriation by employees, brand hijacking and even natural disasters have left many businesses in the lurch and even closed many. As a business owner or leader, time and knowledge is critical. The pace of each day leaves little time for knowing every facet of your business. As budgets tighten, you are pressed to do more with less. It is not uncommon to have a myriad of things fall through the cracks - blind spots! This year's 7-7-7 panel will explore the many blind spots that exist and offer some simple and practical tips for identifying and preventing them from doing further damage.
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2012 777 The Seven Blind Spots in Business and How to Prevent Them
1. 7 Experts – 7 Tips – 7 Minutes
The Seven Blind Spots of Business
May 23, 2012
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2. Ground Rules
1. Each EXPERT will have SEVEN MINUTES to share their
TIP.
2. A one-minute warning will sound.
3. Once the signal sounds, no more TIPS!
4. Please hold all questions until the end.
5. There will be approximately 30 minutes for questions
and answers after all have shared.
6. Questions should be directed to the moderator.
7. Please keep track of TIPS on the back of your info sheet.
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5. Hiring is a Big Deal
• Lots of: time, money, effort
• Turnover costs:
• Minimum wage employee 1/3 to ½ salary
($5,600-$8,500)
• $50,000 employee 1 – 2X salary
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6. After All this Effort:
• Sink or swim philosophy
• We don’t have time to coddle employees.
• No one gave me extra help when I was
new.
• We don’t have a training budget; they’ll
just figure it out.
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7. Some Employee Statistics
• According to research by the Aberdeen
Group, 86% of new hires make their decision to
leave or stay within the first 6 months; and
• 89% of new hires say they do not have the
optimum level of knowledge and tools
necessary to do their job.
• According to research conducted by Society for
Human Resources Management, 79% of those
who quit their jobs cite lack of appreciation as
the main reason.
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8. Onboarding: deliberate, focused efforts
over the first 6 months to a year to help
new employees acclimate.
• Feel comfortable sooner
• Feel competent and become more
productive
• Become an engaged team member
• Happier customers
• Reduced turnover
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9. First Impressions Count
• Send a new employee packet before the start
date; practical information: dress
code, parking, lunch protocol, job
description, sense of the culture, etc.)
• Clean work space
• Make sure supervisor is in first day
• Message: “We’re so glad you’re here!”
• Tour, introductions, lunch
• Spend time with top executive
• Add to all communication lists
• Be creative! (freebies, note from
top executive)
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10. Tools of the Trade
• Assign a mentor or buddy
• Provide all the materials and equipment
needed
• Provide information or where to find it
• Provide role modeling
• Check in periodically to see how they’re
doing; what else they need--
weekly, monthly
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11. C-o-n-n-e-c-t-o-t-h-e-o-d-o-t-s
• What is this job and its purpose?
• What does excellence look like?
• How does this position contribute to the
well-being of our customers?
• Set up informational meetings with
managers in other departments
• Communicate goals, mission and core
values
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12. Employee Recognition and Motivation
• Recognize early and often!
• Give honest feedback and coaching
• Determine first year milestones
• Recognize and celebrate
accomplishments
• Get to know the whole person
• Learn what’s important to this employee
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13. What’s good for new staff is good for all
• Don’t have dumb policies
• Nip bad behavior in the bud
• Encourage and value employee ideas.
Listen!
• Engender trust: keep your
word, communicate often (even to say “I
don’t know yet,”) never publicly
criticize, be consistent in
actions, values, practices.
• Accentuate the positive! 13
15. Risk Management
• Once risks have been identified and
assessed, all techniques to manage the
risk fall into one or more of these four
major categories:
• Avoidance: eliminate- withdraw from
• Reduction: optimize – mitigate-disperse
and redundancy
• Sharing : transfer risk – outsource or insure
• Retention: accept and budget
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16. Break it down to the most obvious
threats to your operation:
• Employees not able to come to work and
the fall out of whatever has happened to
them.
• Power/communication interruptions.
• What will produce these outcomes?:
• Fire.
• Flood.
• Blizzard/Ice storm.
• Theft, vandalism, PHISH reunion.
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34. Prevalence of Fraud by Payment Method
Type of payment % of organizations subject to
attempted or actual fraud in 2011
Checks 85%
ACH Debits 23%
Purchasing Cards 20%
ACH Credits 5%
Wire Transfer 5%
Payroll & Benefit cards 5%
Source: 2012 AFP Fraud and Control Survey
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35. 2012 AFP Fraud and Control
Survey shows that…..
Average
Fraud is
loss
up 25%
$19,200
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36. Who is committing the crime?
Kind of party % of Organizations subject to
attempted or actual fraud in
2011
Outside individual (ie. checks forged, stolen) 85%
Organized crime (ei. City specific crime spree) 16%
Internal party 11%
Third party or outsourcer (ie. Vendor, professional 7%
services provider)
Account takeover (ie. Hacked system, malicious 7%
code – spyware, malware, man in the middle)
Lost, stolen or compromised laptop or mobile *
devise
Source: 2012 AFP Fraud and Control Survey
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37. But why?
•Can’t look at every check
•Check Conversion (check 21)
•Accelerated availability
•Low cost, high quality equipment
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38. Regulations are changing…
Isn’t the bank responsible when there is check
fraud?
Changes to Uniform Commercial Code (UCC)
• Significant rewrite of articles 3 and 4
•Introduced “negligence” and “ordinary care”
• potentially shifting responsibility for fraud
•“Ordinary care” requires companies to follow “resonable
Commercial standard”
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39. What am I worrying about?
Usually the WRONG things…….
Who is the
boogey man?
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40. What should I be worrying
about?
•Keep checks & endorsement stamps in a locked location
•DO NOT take photocopy of checks that come into your
office
•Banks will never send you an e-mail asking you for
information
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41. #1 Way to Prevent Check Fraud
Check your account
on-line EVERY day.
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42. Other Ways to Protect Your
Business
•Segregation of duties
•Timely reconciliation of accounts
•Insist on vacation time off
•Protect check stock and endorsement stamps
•Positive Pay
•ACH Debit Blocks
•Create separate accounts for tax payments, payroll, etc.
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46. Security:
• Use and Manage a quality Firewall Appliance
• Don’t assume that no one wants to access your data
• Don’t store confidential data unless required.
• Credit Card data
• Social Security #
• Birth Date
• Use strong passwords – 8 case sensitive, alphanumeric
• Change Passwords periodically. 90 days.
• Case Study.
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47. According to the US Archives and Records
Administration, 93% of the companies that lost
their entire data for 10 days or more filed for
bankruptcy within one year of the disaster and
50% of businesses that found themselves
without data management for this same period
of time filed for bankruptcy immediately.
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48. Business Continuity:
• If your server was stolen today could you be operational
tomorrow?
• What would happen to your business?
• What is your Business Continuity Strategy?
• Do you test your backup on a regular basis? How do
you know you can restore data?
• Business Continuity is not the same as backup.
• If you delegate this function, test it quarterly.
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51. With today’s technology and pricing, the
only reason to lose data or have
significant downtime is poor decisions.
Never Click Here!
One Tip: Protect Yourself at all times!
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85. THANK YOU FOR ATTENDING TODAY
Copies of today’s presentation are available
for sharing or download at:
www.twitter.com/FamBizSuccess
www.facebook.com/vermontfamilybusiness
www.slideshare.com/dvdv
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Notes de l'éditeur
Do you know who this man is?
How about now? He’s flanked by LeonardoDiCaprio and Steven Speilberg. His Name is Frank Abagnale. You may recall that Leonardo chronicled his life between the ages of 16 and 21 in the film “Catch Me if you Can.” In this film, Frank
We love checks
In 2009 wrote nearly 25 billion checks. While this number is declining, there’s still plenty of reasons why we don’t anticipate they will be going away soon…….
So with all these checks in the banking system, folks like Frank Abagnale have figured out how to fradulently produce or alter them for profit. The 2012 AFP survey revealed that 85% of businesses experienced attempted or actual check fraud in 2011. That is nearly every single one….if you haven’t experienced fraud, the statistics indacted that you will.
Even scarier, of those business that experienced actual fraud, the average loss was over $19,000. Let’s just stop for a minute and think aobut what that would mean to your business. This is a real loss, after all the dust has settled. So, the fraud amount may have been more and this was the “residual” loss after the bank helped you untangle the web which could have taken years and potential litagation.
So, who is committing check fraud? 85% of business report that is committed by someone outside the organization by stealing checks and creating bogus ones, or by altering the payee or amount. What is important also about this slide is that what you don’t have to be afraid of….look at account takeover or compromised iphone. Very small percentage.
Checks are going thru the sorters so fast...the banks have figured out what the combustion speed to catch a check on fire then processes them just a bit slower.Check 21 brought us the ability to pass checks as images or convert to electronic transactions like when you go Walmart or Costco.Accelerated availability – very competitive, everybody wants immediate use of their money once depositedGood quality printers, scanners, photo shop and available check stock at staples. Old days had to use chemicals, isotone, brake fluides, etc. to wash the check. Now just scan off the MICR line with the routing & transit number and account number, buy some stock at Staples and start creating checks. Or better yet, order some checks on-line by providing that information.
Who is the boogey man? We worry about lots of very complex stuff, like hackers and spyware, trojan horses and brower-in-the middle. We are worried about on-line banking and mobile apps. The data is overwhelming that we can control our likelihood of fraud by taking a few simple precautions….
Who is the boogey man? We worry about lots of stuff…but let’s keep it simple.