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Developing Standards for The Cloud

cloud

Storing data on “The Cloud” is all the rage these days. And like any immature business technology, there is thus far not a ton of guidance for companies trying to educate themselves on the protocols, standards and best practices to follow before they make the transition from their internal servers to the cloud.

To help in this area, we just ran a feature story on the topic, highlighting the benefits (cost, speedy disaster recovery) and the risks (security, uncertain contracts with suppliers) that any risk professional should read. (Yes, I am biased … but it’s a good breakdown. You may also benefit from the advice surrounding security, customer service and integrity in “Putting Cloud Storage Providers to the Test.”)

Fortunately, however, the federal government has launched an initiative to standardize all of the key areas related to cloud computing.

The federal government’s standards organization plans to develop a roadmap for cloud computing standards and guidance, National Institute of Standards and Technology officials said Thursday during the first day of a two-day government cloud computing forum.

“Right now, when government CIOs want to go to the cloud, it’s kind of a free-for-all, and they have to think of everything themselves,” NIST director Patrick Gallagher said in a brief interview. “We want to help provide a structure.”

Developing a roadmap, officials said, will help prioritize standards efforts, looking to remove perceived barriers to cloud adoption around security, interoperability, portability and reliability.

NIST’s Strategic Cloud Computing initiative will not solve all of risk managers’ problems. Each still has to do his or her homework to determine whether or not the concerns outweigh the benefits for the organization.

But this is a good start and should help.

The Risks of Social Media: Planning to Fire Someone for a Facebook Post? You Better Think Twice

The more Facebook has risen in popularity — culminating in it reaching 500 million followers last June and its Hollywood creation tale The Social Network becoming the number-one movie in America in October — the more legal issues have surfaced. The most high-profile have been the near-constant privacy complaints against the company, which has a history of introducing new, unpopular features that people must opt-out of if they don’t want to submit to rather than opt-in to access.

For outside companies, however, perhaps no legal issue has been more contentious than the issue of firing an employee for something they posted on Facebook. It might be due to a salacious photo or an off-color remark about the business — and it might even have been done on the employee’s personal time — but time and time again, companies have fired workers for “inappropriate” behavior online.

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Well, based on a National Labor Relations Board (NLRB) ruling last week, we might be seeing a lot fewer of these incidents in the future.

In what labor officials and lawyers view as a ground-breaking case involving workers and social media, the National Labor Relations Board has accused a company of illegally firing an employee after she criticized her supervisor on her Facebook page.

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This is the first case in which the labor board has stepped in to argue that workers’ criticisms of their bosses or companies on a social networking site are generally a protected activity and that employers would be violating the law by punishing workers for such statements.

In what labor officials and lawyers view as a ground-breaking case involving workers and social media, the National Labor Relations Board has accused a company of illegally firing an employee after she criticized her supervisor on her Facebook page.

This is the first case in which the labor board has stepped in to argue that workers’ criticisms of their bosses or companies on a social networking site are generally a protected activity and that employers would be violating the law by punishing workers for such statements.

This specific case deals with a Connecticut ambulance company that fired an EMT, who belonged to a union, for criticizing a supervisor. The company termed the violation as “negative personal attacks against a co-worker posted publicly on Facebook” — something that went well beyond the company’s ban on depicting the company “in any way” on social networks.

Ultimately, however, the legal issue comes down to whether or not what the EMT posted was a protected worker right. Given the fact that a union is involved, those rights are already more clearly defined than they might be otherwise.

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And in the opinion of the NLRB, this was a clearly protected right.

Lafe Solomon, the board’s acting general counsel, said, “This is a fairly straightforward case under the National Labor Relations Act — whether it takes place on Facebook or at the water cooler, it was employees talking jointly about working conditions, in this case about their supervisor, and they have a right to do that.”

That act gives workers a federally protected right to form unions, and it prohibits employers from punishing workers — whether union or nonunion — for discussing working conditions or unionization

The ambulance company, naturally, disagrees with this assessment.

Regardless of the details of this case, however, there are obviously still many things that an employee could do on Facebook that would merit termination.

(Off the top of my head, some behaviors would likely include libel, harassment and violent threats, among others). And those without union protection are likely going to have a harder time at receiving re-instatement or fair compensation for unwarranted termination.

But this case, which will go in front of a judge on January 25, will help demarcate the standards that companies must adhere to in cases where the egregiousness of the comments is more murky than blatant libel or harassment. And the likely outcome is that many companies will have to re-evaluate their social media policies to determine if their bans on discussing the company in any way on social networks are overly broad.

For a look back at some of the most high-profile firings over Facebook, check out The Huffington Post’s “Fired Over Facebook: 13 Posts That Got People CANNED.”

Minnesota Leads Nation in Touchdowns

No, despite the their shocking comeback to beat the Arizona Cardinals yesterday, we’re not talking about touchdowns scored by the still-struggling Minnesota Vikings. Unfortunately for those in the Land of 10,000 Lakes, battered — both physically and emotionally — QB Brett Favre has only found the endzone nine times this season.

But Minnesota did surprisingly lead all states in 2010 in terms of tornado touchdowns — mostly due to an insane amount of twister activity on June 17, which saw an unprecedented 48 tornadoes, according to the St. Paul Pioneer Press.

It leads all others in the number of tornadoes that have swept through the state this year.

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The National Weather Service says 104 tornadoes touched down in Minnesota in 2010, shattering the old record of 74 in 2001.

The state usually doesn’t find itself at the top of the list.

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Kansas, Oklahoma and Texas typically have the most.

Obviously, tornado preparedness and relief are a very serious matter.

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Our sincere condolences go out to all of the families and communities affected by the loss of life and property due to these pernicious windstorms throughout the year.

tornado

How Risk Oversight Fails

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For the past few years, Congress, the SEC, rating agencies and even the venerable Risk Management magazine have all been harping on the need for organizations to improve their risk oversight. But as any risk professional worth his or her salt should know, all risk oversight is not good risk oversight.

It’s a very simple, logical fact — but one that is all too often overlooked.

No organization would think that just having management means it has good management. Few would think having an IT department means they inherently have optimal technology. For some reason, however, that is the way many think about risk oversight. We have it — it must be working.

Wrong.

Luckily, Boardmember.com has put together a good list of “Ten Ways Risk Oversight Can Fail” to help illustrate the difference.

Not understanding strategic risk management — the next “wave of the future” and something I wrote about in September — is one key way companies fail.

(2) Lack of understanding of, or a failure to monitor, the significant assumptions underlying the strategy – Boards should understand the critical factors that make or break the successful execution of the strategy and ensure a process is in place to monitor business or regulatory changes that could impact those factors.

Charting emerging risks, not surprisingly, were another obvious inclusion.

(4) Failure to identify and manage emerging risks – The board must satisfy itself that management brings to bear the appropriate expertise, processes and information to identify new and complex risks to the execution of the enterprise’s strategy and business model and to manage those risks effectively.

The list also featured a nice summation of what too many organizations consider an actual enterprise risk management program.

(6) The company practices “enterprise list management” – Generating lists of risks over time with no follow-up to understand and close gaps in risk management capabilities is not good practice. Risk management should impact the core management activities that matter – strategy-setting, business planning and performance management.

And, of course, the board — often a laggard on understanding the true risks of the company — can provide a critical point of risk oversight failure.

(10) The board isn’t organized effectively for risk oversight – The board may not be allocating sufficient time and resources to risk oversight. Or the board isn’t availing itself of the appropriate company officers to focus on identifying areas in which management needs to improve the organization’s capabilities and information for managing risk. Or there is insufficient coverage by the board of the enterprise’s risks.

Click through to the full article for the other six ways risks oversight can fail.