Guarding Your Business From Offense

This week's troubles on Wall Street make me remember an earlier downturn in the 90's in the financial services industry once i was a VP of HR for a large national retail and mortgage commercial bank. While working in this industry, I managed two separate selective reductions in effect affecting about 85 employees, plus a plant shut down of approximately 330 employees.

Certainly it any difficult time for me and for my employees. My husband called me "the black widow" then, asking me following each workday just how many employees I'd baulked. Once I finished managing the plant shut down, Then i received my own severance package and exited the company to begin my own diamond ring HR consulting experience. I'd been offered the option in regards to a transfer to another division or a severance package. Quite honestly, I didn't want to manage anymore RIFs despite the fact that I'd become person matter expert, it truly opted for the severance package.

As the economy tightens, overall criminal activities increase dramatically. This includes every type of crime from theft & embezzlement to workplace violence and corporate espionage. The American Bankruptcy Institute reports that consumer bankruptcy filings rose to just one.06 million in 2008, compared with 801,840 during 2007 & that trend will be far higher in 09.

More and more, individuals are facing increased financial pressures; which leads to be able to sharp spike in every one areas of crime and litigious attitude. As individuals struggle with foreclosures, layoffs, rising expenses, increasing medical costs, plus more ! interpersonal stress, problem of the increase the chance that employees will steal from employers, or leave the company taking company assets or other sensitive information with the group. Expect IP theft and identity theft to reach record highs in the approaching year, and take additional precautions safeguard your business' most useful assets.

Businesses both large & small are heading into bankruptcy in record numbers: 28,322 businesses filed in 2008 along with 29,960 in the first three quarters of 2008 (according to the American Bankruptcy Institute), with no signs of slowing down anytime soon. So it's not surprising to see theft & litigious activity sky-rocketing. The US Chamber of Commerce estimates that employee theft costs businesses $40 billion dollars each year. This total is retail outplacement far the value of street crime losses annually in usa. The US banking industry reports losses of that could reach over $1billion annually may well above the combined losses since bank robberies. American businesses lose around 5 percent of annual revenues to fraud resulting in staggering losses of around $638 billion (based on research via Association of Certified Fraud Examiners). Compromised systems, data leakage, and network security vulnerabilities also top the list of damaging and criminal activities when the economy nose-dives. Businesses, governments and institutions reported nearly 50 percent more data breaches last year as compared to 2007, exposing personalized records of to start 35.7 million Americans, according to the Identity Theft Resource Center of Hillcrest. Organized crime rings are expanding, using insider employees, and are to blame for much of this theft. The FBI states that employee theft is the fastest growing crime found today.

Businesses should consider the effects of prior employees as well as recently laid-off employee behaviors, in addition to some existing employees. Employers and managers often overlook their existing employees who in a position to outwardly happy for optimal job but inwardly feel they are owed more from company for their loyalty, because their pay or options have been reduced, or simply considering that they often feel eligible for have more. The incidence of Workers comp claims are already increasing and incidents of petty theft internally within companies is at an all-time high.