Disaster Due Diligence March 5, 2009
Food safety
HEADLINE: Food poisoning strikes 25 percent of Americans each year
SUMMARY: According to the CDC, as much as 25 percent of the U.S. population will experience a food-borne illness each year. A virus often contracted on cruise ships accounts for two-thirds of food poisoning cases. The recent peanut-related salmonella outbreak caused more than 600 illnesses and has been linked to nine deaths.
STORY LINK: http://hsdailywire.com/single.php?id=7464
ANALYSIS: Recent food contamination in the U.S. and China has many concerned about the safety of domestic and imported food products. The U.S. is a very large food importer -- spending around $81 billion last year on imported foods, flavorings and ingredients. Despite the downturn in the U.S. economy, agricultural imports continued to rise, with an expected 4 percent growth over this federal fiscal year. The projected total import value is $82.5 billion, up $1.5 billion from last year and $3.2 billion more than in 2007
Each year we import a significant amount of fruit juice (4.9 million metric tons), fresh fruit (8.7 million metric tons), fresh vegetables (4.6 million metric tons) and processed fruits and vegetables (4.4 million metric tons). With respect to fresh fruits, import demand has shifted from citrus fruits and melons to other fresh fruits such as avocados, cranberries, grapes, papayas and oranges. Some imports are a surprise to consumers. For example, although the U.S. is the second-largest beef exporter in the world, we are also the second-largest importer. We export higher priced beef cuts (steaks and tenderloins) and offals (liver, tongues, kidneys) and import a significant amount of meat trimmings from Australia and Uruguay to be ground into hamburger.
In reaction to food safety concerns, the FDA has opened offices in China and India to help improve local processing prior to any product moving to the U.S. The USDA Animal Plant Health Inspection Service and the Food Safety Inspection Service are also working to assure the safety of product being shipped from foreign markets. Yet, less than 5 percent of food imports are inspected at the port of entry. Needless to say, food safety is an issue that the new administration is going to have to deal with to regain consumer confidence. The same is true in China, Europe and other nations that have had recent scandals regarding food adulteration.
Homeland security
HEADLINE: FBI director: Mumbai attack raises questions about terrorism in U.S.
SUMMARY: Robert Mueller pointed to recent terror attacks in Mumbai, India, and Somalia to highlight the FBI's concern that small groups or individuals could carry out such attacks on U.S. soil. The FBI director said the Mumbai attack showed a small group of terrorists with little resources can have a large impact.
STORY LINK: http://www.cnn.com/2009/US/02/23/fbi.terrorism/index.html
ANALYSIS: As stated in previous comments and in this article, this type of attack could certainly happen in Seattle, San Diego, Miami or Manhattan. However, let us not forget the hotels and shopping centers in Palm Springs, Albuquerque, Milwaukee or Charlotte. We must not think that attacks only happen in large cities and that other areas of the country are safe. Remember, one of the biggest terrorist attacks in American history took place in Oklahoma City. This attack, as well as bombings in the 1960s and ‘70s, were planned and carried out by homegrown terrorists.
The issue with a soft-target attack is not if it will happen, but when, and will we be ready when it does. Why hasn’t a Mumbai-style attack happened here? It could be that our intelligence gathering is working. It could be that no one has worked up the nerve or has been convinced to take part. Or, it could be that the great majority of Americans, and those who have lived in America for any length of time, realize how good they have it here compared to other parts of the world and they don't want to mess it up.
Communicable illness
HEADLINE: EGYPT: Migrants the weakest link in bird flu preparedness - report
SUMMARY: Sudanese refugee and migrant communities in Egypt were the primary focus of a health report conducted by The Centre for Migration and Refugee Studies and the International Organization for Migration (IOM). These groups were found to be extremely vulnerable as they are not a component in Egypt’s current pandemic preparedness plan. Refugees and migrants were found to be unknowledgeable about a pandemic and fearful of deportation and therefore might not come forward with an illness.
STORY LINK: http://www.irinnews.org/Report.aspx?ReportId=81078
ANALYSIS: Plans must be designed to include everyone. Failure to account for the poor, disabled or illiterate is a form of disaster discrimination. Different people have different motivation and needs. In this example, the poor in Egypt view birds as a major asset. They have a cultural bias in protecting their asset. The plan did not recognize drivers to promote change.
All corporate disaster plans must require planning at home for employees. In this situation, communications and incentives are needed. Without that, there is failure.
-- Jim Satterfield, Firestorm President/COO
Cyber security
HEADLINE: Data theft common by departing employees
SUMMARY: Many people secretly take proprietary data from their former employer on their way out the door, a study released this week found. Nearly 60 percent of employees who quit a job or are asked to leave are stealing company data, according to a report by a Tucson-based research group. Sixty-five percent of those grabbed e-mail lists. The next most frequently stolen data included non-financial business information (45 percent), customer contact lists (39 percent), employee records (35 percent) and financial information (16 percent).
STORY LINK: http://www.washingtonpost.com/wp-dyn/content/article/2009/02/26/AR2009022601821.html
ANALYSIS: One of the really great things about being able to stick your head in the sand is that you can be totally oblivious to issues that pivot on your employees stealing you blind. While plausible deniability has its advantages for some levels of management, it seldom contributes to fixing a problem, which as this article points out, is rampant in corporate America.
Two factors contribute to this situation: First is an HR department that doesn't see the need to establish a working relationship with the IT security folks when it comes to the termination process. As a result, employees who have been fired for cause can still have access to the company's IT infrastructure and all the data in it. HR staffs typically never realize there is a compelling need to revoke an employee's remote access privileges before they leave the building. Hence, a "steal what you want" blank check is issued. That's a situation that exists 24 percent of the time, according to this article.
Second on the list is the use of the home computer to telecommute into the office. While telecommuting can be a very effective solution for lowering costs significantly (especially when the employee is paying for the computer equipment), these savings are completely nullified when a company fails to put enforceable policies in place that control the distribution of its most sensitive intellectual property.
"Giving away the farm" has never been a viable business model. But that's what companies do when they fail to control what information gets sent out of their environment (e-mail attachments, file transfers, etc.) or copied to removable storage devices. So what can you do? Make sure your HR department has a termination checklist that includes revoking any access privileges, both physical and logical, before the employee leaves the building. If employees are allowed to telecommute, ask someone in HR how they plan to get their company's data back after a termination occurs. Most of the time the response will be, "Get back what?" Good luck on your quest.
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