Risk Roundup for March and April 2018
Our second Risk Roundup of the year is notable for its tragedies and hope for a safer world. Over the last two months we’ve had a bridge collapse in Miami, a Facebook data privacy crisis, a family tragedy in Mexico, an airline’s worst accident, and we ended April with great hope for North and South Korea. All together, they represent our top risks for March and April.
Pedestrian bridge collapses in Miami
In mid-March, a newly built pedestrian bridge at Florida International University collapsed, killing six people and injuring nine. How could such a thing happen? Contractors were certified. Processes were followed. Or were they? Two days before the collapse, a bridge project engineer called an official at the Florida Department of Transportation and left a voicemail warning about “some cracking.” The official was on assignment and didn’t receive the message. The risk management process associated with civil engineering projects should account for new incoming information that impacts worker and public safety.
Facebook under fire for data privacy and fake news
Iowa family tragedy in Mexico
Spring Break is supposed to be fun. For one Iowa family, it was tragic. The family of four lost their lives in the middle of the night when the water heater in their rented condo leaked propane and asphyxiated all family members. According to the National Institutes of Health, “exposure to very high concentrations of propane can cause death by suffocation from lack of oxygen.” It makes Risk Roundup wonder what policies and safeguards are in place to protect people staying in hotels, resorts, and Airbnbs around the world?
Southwest Airlines’ worst accident ever
On a Southwest flight from New York to Dallas, a fan blade broke off from an engine, sending debris into the wing and fuselage. The damage blew out the window on Row 14 and fatally injured the passenger sitting in the window seat. The plane landed safely in Philadelphia, but it represented the worst accident in Southwest’s history. By all appearances, like the way passengers were taken care of and immediate inspection of engine fan blades on all its planes, the company clearly understands the importance of business continuity and disaster recovery planning.
Historic Korea summit
Geopolitical risk watchers didn’t see this coming. North Korean leader Kim Jong Un and South Korea’s President Moon Jae-in had a historic meeting at the Military Demarcation Line. Right there in the DMZ, both leaders signed a document that commits the two countries to a nuclear-free peninsula and sets into motion a formal end to the Korean War. That’s good news for companies with operations or supply chains in South Korea or aspirations for North Korea. A geopolitical risk has been mitigated for the time being.
That’s it for our May edition of Risk Roundup. We’ll be back in early July with a roundup of notable risks from May and June.
NSCC members face a new compliance requirement: cybersecurity confirmation. It sounds easy, complete a form, but risk is high. Here’s guidance.
Compliance departments are seriously challenged these days. As business swirls in response to COVID-19, compliance has taken a back seat. That can lead to trouble—violations, fines or both—due to missing deadlines. Management, in a questionable move, may ask compliance to do something taboo. Instead of reading a half empty glass post designed to help compliance deal with these challenges, they instead get a half full glass post that is brimming with optimism for compliance’s role during COVID-19.
COVID-19 has pushed several risk disciplines into the spotlight, including business continuity, third party risk, cybersecurity, and data privacy. We’ll explore each one and deliver advice and guidance.