Risk Rap

Rapping About a World at Risk

Lousiville Business Community Iced Over

The massive ice storm that raged across the US this week has left a path of devastation in its wake. Particularly hard hit was the jewel of the Ohio River, Louisville Kentucky.

Damaging ice covers the entire region and the three largest electric utilities estimate that over 700,000 people are without power. This type of disaster has an immediate impact on small and mid-size businesses. Many small businesses are shuttered due to an inability to access power. Service oriented and home based businesses are also particularly hard hit by the power outages due to their dependency on digital technologies.

Business closure means that cash registers are not ringing. During these lean times of a deepening recession weaker businesses are particularly susceptible to the negative impact of these events. A single day of lost revenue can be the difference in a small businesses ability to maintain itself as a going concern.

The importance of having a set of contingency plans to accommodate these types of business interruptions is critical even more so due to the difficult business cycle we are now confronting.

The implementation of a sound practice program as advocated by Sum2 helps businesses to address these types of risks. The Profit|Optimizer helps managers craft an effective sound practice program. Sound practices incorporates plans to mitigate the negative effects of business interruption events and initiate actions that maintains profitability during the most adverse market conditions.

You Tube Video: James Taylor and Natalie Cole, Baby It’s Cold Outside

Risk; business continuity, sustainability, disaster planning

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January 30, 2009 Posted by | business continuity, disaster planning, risk management | , , , , | Leave a comment

Economy Starts to Freeze Up

They say if they don’t get this TARP deal done the credit markets will freeze. Heck they were saying that all this afternoon on CNBC. Its amazing how tempers are flaring even on CNBC about this bailout. They are trying their best to sell it, but Americans don’t like to be told what they must do. God bless em. Barney Frank and Nancy Pelosi have been trashing McCain all day. They think a deal will be struck by this weekend. The markets are hopeful this will be the case.

Today US equity markets were mixed with the S&P 500 up and the Dow is holding tough at 11,000 plus. Incredibly the DOW was up by 121 points after the FDIC seizure of WAMU and sale of assets to JP Morgan. Next up for seizure is Wachcovia and National City. Fortis the large Belgian Bank said today that it is sufficiently capitalized to remain solvent. As the banks continue to fall like so many cascading dominoes pretty soon the severity of the economic crisis will be more apparent. Make no mistake we are in a rough spot. The US dollar remained stable and US Treasuries yields are falling as money seeks a safe haven.

The Labor Department expects employment to fall by 90,000 jobs in its September Employment Report. Today the Commerce Department revised down second quarter GDP by .5% to annual growth of 2.8%.

This debate looms large and Obama and McCain have lots to talk about. Good thing McCain put country first and decided to show up. His countrymen want to hear what he has to say and don’t deserve a cold shoulder from this old warrior.

Heres a great song by Ray Charles and Betty Carter Baby its Cold Outside.

Risk: political apathy

September 26, 2008 Posted by | banking, credit crisis, EESA, jazz, McCain, Obama, politics, TARP | , , , , , , , , , , | Leave a comment