About Justin Smulison

Justin Smulison is the business content writer at RIMS.

More About Santa-Related Risks

Earlier this month, we reviewed how the mere mention of Santa Claus can affect business and finance. Tying his name to a stock market rally or business operation could make values jolly, or the reverse, it could have more of a Freddy Krueger effect. But even if your portfolio and productivity remain unchanged, Santa-related risks can also follow you home and even impact family life.

Anyone who needs more than a mere glimpse of Santa Claus may want to take the fun a step further and attend one of the SantaCons across the country (many of which will be held this weekend). According to SantaCon.info, the best-known repository for SantaCons, at least 397 cities in 52 countries host the events, and some cities have more than one. Whether you want to appear in costume or take your family, dressed in their red, green and white seasonal sweaters, the site has some tips to help you avoid getting jilted out of holiday cheer. The site warns that while SantaCons are typically free, some are ticketed events to help organizers cover excess costs, and many of the Santa-themed events are commercial. Then there are the spoilers. It continues:

Again, this year, websites are popping-up making false claims and trying to sell SantaCon tickets. Please be careful not to get scammed and also consider the reputation and safety risks involved. Use this guide:

  • Most SantaCons are completely free to attend (Washington, D.C. is one of these).
  • Many SantaCons request a donation which is completely optional (San Francisco is one of these).
  • Some SantaCons request a donation which gets you some benefits (NYC is one of these).

Visit the site to review the overall criteria for entering and remaining at SantaCon for the event’s duration. The most important guidelines cover dress, safety, and conduct:

  1. You can dress how you like but the theme is red.
  2. Don’t make kids cry.
  3. Don’t mess with security and make people feel unsafe.
  4. Don’t get drunk or high.

(It would seem like disregarding tips 3 and 4 could directly cause #2.)

Additionally, be sure to determine if your SantaCon will be family-friendly or for adults only. Some of these events are fundraisers for charities, while others are just a prelude to a pub crawl—which does contradict the fact that Santa is generally discouraged from drunk and disorderly behavior (see guideline #4 above). Those pub crawls are often limited to the Santas in the crowd, but why shouldn’t everybody be merry?

And although you and your family will see Santa’s foot soldiers, lots of people will wonder which is the real Santa amid all the white beards and red hats.

What has become a pastime on Christmas Eve is the tracking of Santa’s location and progress.

There are several devices and agencies dedicated to keeping tabs on Santa. One of the most popular trackers is run by NORAD (North American Aerospace Defense Command). Its Santa Tracker began in 1955 after a newspaper ad for Sears mistakenly listed a phone number that kids could dial to reach Santa Claus; it was actually a secret line to the red phone at the Continental Air Defense Command, NORAD’s predecessor. One of the outcomes of the ad was to expose the risk of typographical errors in print publications.

Using more than one tracker on Christmas Eve, like the Google Santa Tracker, can call into question Santa’s aerodynamic abilities among children whose vocabularies might not include the word “aerodynamic.” Two trackers may simultaneously show Santa along different routes and indicate different amounts of presents delivered. So once a child is actively following Santa activities on more than one tracker, he or she may then ask: “How can he be in China on the Google tracker when NORAD says he’s in Nebraska?”

Most people actively tracking Santa do not want to comment on the technological and supply chain risks involved, accidentally bringing a “bah humbug” to the holiday. Of course, if you are seeking that information, enjoy reading one of his many risk assessments.

Risk and Crisis Management Explored at Cyber Event

NEW YORK—Cyberattacks and data security need to be high priorities for all businesses, experts stressed at ALM’s cyberSecure 2017 event here, Dec. 4 and 5. In fact, not only is failing to prepare for an attack or breach risky, it’s foolish, Kathleen McGee, internet & technology bureau chief for the Office of the Attorney General of the State of New York said in Monday’s opening address. She added that not reporting a breach in a timely fashion has its own set of legal and reputational risks, referring to the SHIELD Act (the Stop Hacks and Improve Electronic Data Security Act), introduced to New York State legislature by Attorney General Eric Schneiderman in November.

“Under the SHIELD Act, companies would have a legal responsibility to adopt reasonable, administrative, physical and technical safeguards for sensitive data,” she said Monday, adding that the standards would apply to any business holding data of New Yorkers, whether or not they do business in the state.

McGee noted that even though a company may not have all the details in the first 72 hours following a breach, reporting it to the New York Department of Financial Services (NYDFS) or another regulator is crucial. It is a legal requirement as part of the NYDFS Cybersecurity Requirements for Financial Services Companies, and even if all the pertinent information about an attack is not yet available, divulging what is known will prevent further enforcement action from the state.

“For some companies, data is the only commodity,” she said. “But in the past 10 years, risk assessments have not evolved as quickly as data collection.”

That observation lent itself to a segue for the next session, “Integrating Periodic Risk Assessment to Avoid Becoming the Next Target of a High-Profile Cyberattack.” Panelists covered the importance of formal risk assessments, which will be legally required by regulators like the NYDFS and the General Data Protection Regulation (GDPR) in Europe and goes into effect in 2018.

Moderator Eric Hodge, director of consulting at CyberScout, said education charts the path to a positive assessment and suggested using non-traditional training methods to onboard clients and employees over the course of a year.

“There are a lot of ways to educate other than the traditional annual training session set in a typical conference room,” Hodge said. “You can try white hat phishing to trap people in a safe way. Share your stories every month and be honest about your own failures. There are ways beyond just checking a box.”

eHarmony Vice President and General Counsel Ronald Sarian said his company has learned from its past incidents to better prepare and to update its ERM framework. The dating and compatibility company’s site was breached in 2012, before he joined the group.

“You need to do a data impact assessment and ask: What are your family jewels?” noted Sarian, who has implemented ISO27001 as the ERM framework to secure eHarmony’s international and cyber presence. “We had so much in place already that I thought we should take a shot at it. It takes at least a year but so far it’s working for us.”

When considering ransomware, experts from healthcare, insurance and electronic payments companies spoke passionately during a dedicated session about how they mitigate risks. Christopher Frenz, director of infrastructure at the Interfaith Medical Center strongly advocated for network segmentation, which he uses at the center, in an effort to keep intrusions contained.

As previously reported, Advisen’s recent Information Security and Cyber Risk Management Survey indicated that, for the first time in the seven years of the survey, there has been a decline in how seriously C-Suite executives view cyberrisk. With that trend in mind, panelist Christopher Pierson, PhD, chief security officer & general counsel of ViewPost, a provider of electronic invoice and payment services to businesses, outlined his approach to eliciting a response from board members.

“You can’t tell the board that [paying] is not an option, unless it’s illegal,” Pierson said. “Educate the board and explain that it is an option to pay terrorists and criminal syndicates. You’ll see the looks on their faces and then you’ll get them [to want to take action].”

Santa’s Impact on Business and Finance

Just as Santa Claus brings gifts down chimneys, his name alone also carries the stigma of risks that transcend all industries. Indeed, thanks to the logistics of his job we better understand the risks of reindeer-led aviation. But perhaps more importantly, Kris Kringle’s presence has long influenced finance and business.

Mentioning him on Wall Street this year may trigger an underlying wealth management risk. The annual “Santa Claus Rally” marks an uptick in the stock market and a 1.4% average return of the S&P 500 index from the last five trading days of the year through the first two of January. This phenomenon can be attributable to people spending and investing a bit extra – possibly from holiday bonuses – leading to a generally happy mood on and off trading room floors.

Since 1950, the market has declined only 15 times during the Santa Claus Rally period. But due to the uncertainty surrounding the tax reform plan making its way through Congress, that 1-in-4.4 chance of downturn is on the minds of cynical investors. As reported recently by Investopedia, “Some bears think that, if Congress fails to make appreciable progress on tax reform before their holiday recess, Scrooge or Krampus will elbow Santa aside, and send the markets downward at year-end.”

And similar to the way Punxatawney Phil seeing his shadow on Groundhog Day can predict six more weeks of winter, Santa skipping stock exchanges’ chimneys may indicate a frosty new year. According to The Stock Trader’s Almanac, some of the more recent holiday seasons without a rally included the last two, as well as in late 2007 and early 2008 leading up to the financial crisis, and just before the dotcom bubble burst in the 1999-2000 holiday period.

Santa’s influence isn’t just relegated to stock speculation and short-term investments, however. Some executives and employees may emulate his work ethic without realizing it. All eyes turn to him in good times and especially during the bad. He’s trying to meet year-end quotas while keeping a workforce happy and focused. Plus, Santa has the burden of trans-meridian travel with frequent stops over a 24-hour period, which is sure to cause jet lag. Sound familiar?

While one all-nighter might not have major long-term effects, regular ones could lead to shift work disorder, which has been linked to chronic diseases and illnesses. Anyone known to “Santa Claus it” too frequently may accumulate a large “sleep debt” over time. According to the Sleep Foundation, “if you work at night, you’re also going against your biological clock, which is naturally cueing you to become less alert and encouraging you to sleep during the nighttime hours.”

This can lead to seasonal “presenteeism,” an issue Risk Management magazine recently explored, detailing pain management in the workforce. Presenteeism occurs when a worker inhabits a space at their job, but “is unable to focus and perform as expected” and can be an even greater drag on productivity than absenteeism. The condition is indiscriminate – it can affect interns and CEOs – and may cause someone to “miss out not only on the income, but also the sense of meaning, purposefulness and belonging that can be gained from a job. Initial distress may lead to chronic anxiety and even depression.”

Identify these risks now, so that the mention of Santa Claus doesn’t put a humbug in your eggnog this holiday season.

Open Offices and Holidays: A Parade of Risks

‘Tis the season for many businesses to stay open through the holidays and for some to take part in the tradition of partying or watching a parade warmly from behind office windows. That’s why businesses located near public events should inform employees of how their offices will be impacted during the holiday season.

Parades pose various operational risks to property owners and businesses, both inside and outside their buildings. On Nov. 23 alone, at least five large parades will inch their way through the streets of major cities like Chicago and Detroit. Macy’s anticipates 3.5 million spectators to pack New York City’s streets for its annual Thanksgiving Day Parade. That means 2.5 miles of barriers and street closings in the “frozen zone” between 77th and 34th streets, and businesses in the country’s most congested city should prepare for some disruption.

Theresa Morzello, the managing director for asset services for CBRE in New York City, has advised many companies who stay open or host events coinciding with parades and holidays. She said the first steps in mitigating disruption involve communicating with the event organizers and disseminating that information to tenants.

“This way they’ll know, for example, if one of their building’s entrances will close because of a parade,” Morzello said. “We also make sure that employees and their guests know the protocol for providing documentation for entering and exiting. That is usually handled in advance and lists are provided to security. And there are protocols for what to do when someone doesn’t have it. These are all things we do on a daily basis, but amped up a few levels because of the holidays.”

Morzello also said that property managers often try to utilize vacant office space because there is less potential for damage or disruption there. Wherever the gathering takes place within CBRE’s properties, she advises tenants to consider the following:

Hire elevator operators to help keep guests on their assigned floors.

  • Obtain a temporary alcohol license, if necessary.
  • Confirm that outside caterers are insured.
  • Address if the windows are operable and ensure they are kept closed.

But parades and crowded events are not relegated to big cities, as many major retailers take part in the festivities. Acadia Realty Trust manages hundreds of retail and office properties in the U.S. and Kellie Shapiro, vice president of risk management said clearing a physical path is the first step to mitigate safety risks during a high-traffic season.

“We issue a moratorium on any work during the holiday season. We email tenants reminding them to get everything done before Thanksgiving,” she said. “From then until New Year’s is not the time to have scaffolding and things like that.” She added that capital improvements are suspended across most of Acadia’s portfolio to avoid interfering with tenants’ operations during their busiest season.

Businesses can easily lose track of who’s coming and going during the busy holiday season, Shapiro noted. Acadia’s focus is on knowing its vendors, and she reminds tenants to be diligent about vetting third-party contractors for the sake of safety and reputation.

“You can protect your company by being diligent about who you bring in to your site. You should know who your contractors are – you don’t want to let some criminal just walk right in because you handed over the keys to your building,” Shapiro said. “You would hope tenants, if they saw something suspicious, would pick up the phone. We’d all like to secure something 100% but you have to know your limitations.”

Public safety in the U.S. has been headline news, considering the recent high-profile violence involving weapons and automobiles in just the last two months in Las Vegas, California, Texas and Manhattan. In a recent interview with Risk Management Monitor, Rezwan Ali, risk solutions group head of security at Falck Global Assistance, discussed how businesses and employees should review their emergency plans during high-volume times. He maintained, however, that the odds of being impacted by a terror attack is very low.

“When participating in larger events, such as the Thanksgiving Day Parade in New York, people tend to focus only on the parade and their phones taking pictures and posting on social media,” said Ali. “However, it is important to stay alert and aware of one’s surroundings. Not just to be prepared for terror, but also to prevent being a victim of crime. It is recommended to download apps either provided by the authorities or by media outlets that generate alerts allowing you to get direct notifications should anything happen in your vicinity.”