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Disruptive Innovation Equals Growth

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Innovation is the key to growth.

In the late nineteenth century, three innovation technologies evolved at the same time and changed the way the world worked and its paradigm. Thanks to the introduction of the telephone, automobile, and electricity, the world’s productivity exploded as costs dropped, unleashing demand across the globe.

Today, the global economy is undergoing the largest technological transformation and displacement in history thanks to disruptive innovations.

ARK defines ‘‘disruptive innovation’’ as “the introduction of a technologically enabled product or service that changes an industry landscape by creating simplicity and accessibility while driving down costs.”

Innovation meets three criteria

“Over time, innovation should displace industry incumbents, increase efficiencies, and gain majority market share, offering growth opportunities for investors. More importantly, disruptive innovation impacts and concerns all of our lives and changes the way the world works.” Cathie Wood, Founder, CEO & CIO, ARK Investment Management LLC

According to ARK Investment Management, disruptive innovation will:

  • Experience significant cost declines and unleash waves of incremental demand. When a technology crosses certain cost or performance thresholds, its addressable market can widen and diversify dramatically.
  • Cut across sectors and geographies. A technology that cuts across industries and geographies can enjoy dramatic increases in addressable markets as applications are “discovered” by different business sectors. Spanning across sectors also provides better product-market fits, insulates against business cycle risk, and garners attention from multiple disciplines.
  • Serve as a platform atop which additional innovations can be built. A technology upon which other innovations can be built may expand its use-cases in ways that are almost impossible to imagine. As a result, innovation platforms may be underestimated over expansive time horizons because successful forecasts require anticipation of the scope of new products and services.

Today’s disruptive innovations include:

  • Artificial Intelligence
  • Robotics and Automation
  • Blockchain and Cryptoassets
  • DNA Sequencing and Gene Editing
  • Fintech Innovation
  • Energy Storage and Battery Tech
  • Next Generation Internet

For example, artificial intelligence (AI)  learning systems will transform not only retail, media and telecom, as did the Internet, but all sectors in the economy, even those previously thought impervious to disruption, notably health care and financial services.

Invest in the future

Disruptive innovation displaces industry incumbents (like digital photography has erased Kodak and Fuji film companies), increase efficiencies, and gain majority market share.

The threat to existing businesses is grave. The long-term opportunities for companies participating in this change could relate to exponential growth.

References:

  1. https://ark-invest.com/investment-process/
  2. https://research.ark-invest.com/hubfs/1_Download_Files_ARK-Invest/Marketing_Material/ARK-Invest-Thematic-Investment-Process.pdf?__hstc=13933160.99f789dd545191653572e5ece0571091.1584118328216.1587939706096.1587954906355.105&__hssc=13933160.8.1587954906355&__hsfp=101573855
  3. https://ark-invest.com/invest-in-innovation/

Cyber Security: Recognize Social Engineering

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Social engineering is highly successful because the cyber criminals make their work look and sound legitimate, sometimes even helpful, which makes it easier to deceive users. 

Large companies, like Equifax and Home Depot, are often the target of the most sophisticated and large-scale cyberattacks, but attacks aimed at small businesses can be equally as devastating. Some of the most common social engineering threats include phishing emails, texts or phone calls and malware.

Stay vigilant to social engineering

Small businesses need to do more to protect their IT systems against growing cyber threats. Larger companies have taken significant steps and dedicated significant resources to secure their systems.  As a result, less cyber secure small businesses have become easier targets for cyber criminals.

95% of cyber security breaches are due to human error!

Most small businesses and organizations lack the resources to hire dedicated IT staff and incorporate basic cyber security processes to protect their business, information and customers from cyber threats. Even a small business with one computer or one credit card terminal can benefit from strengthening their cyber security protocols.

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Social engineering is used by many criminals, both online and off, to trick unsuspecting people into giving away their personal information and/or installing malicious software onto their computers, devices or networks.  Social engineering is a psychological attack where an attacker tricks you into doing something you should not do through various manipulation techniques. Think of scammers or con artists; it is the same idea. However, today’s technology makes it much easier for any attacker from anywhere in the world, to pretend to be anything or anyone they want, and target anyone around the world, including you.

Social engineering is successful because the cyber criminals are doing their best to make their work look and sound legitimate, sometimes even helpful, which makes it easier to deceive users.  A 2014 IBM study revealed that human error was the primary reason for 95% of cybersecurity breaches.

Most offline social engineering occurs over the telephone, but it frequently occurs online. Information gathered from social networks or posted on websites can be enough to create a convincing ruse to trick your employees. For example, LinkedIn profiles, Facebook posts and Twitter messages can allow a criminal to assemble detailed dossiers on employees. Teaching people the risks involved in sharing personal or business details on the social media can help you partner with your staff to prevent both personal and organizational losses.

Many criminals use social engineering tactics to get individuals to voluntarily install malicious computer software such as fake antivirus, thinking they are doing something that will help make them more secure. Fake antivirus is designed to steal information by mimicking legitimate security software. Users who are tricked into loading malicious programs on their computers may be providing remote control capabilities to an attacker, unwittingly installing software that can steal financial information or simply try to sell them fake security software. The malware can also make system modifications which make it difficult to terminate the program.

The presence of pop-ups displaying unusual security warnings and asking for credit card or personal information is the most obvious method of identifying a fake antivirus infection.

Guard against cyberthreats

Here are 10 tips to help small businesses and organizations to guard against new and emerging cyberthreats:

  1. Develop or review your cybersecurity plan. An effective cybersecurity plan should include strong network security, encryption and authentication technologies. The FCC offers a free cybersecurity planner for small business owners.
  2. Use a firewall and antivirus software. Protect your internet connection by setting up a firewall and encryption. All computers should be equipped with antivirus software and antispyware. Set up automatic software updates on all company devices to ensure security fixes are in place.
  3. Secure your Wi-Fi network. Make sure your Wi-Fi network is secure with password-protected access to your router. Set up a separate guest account with a different password for customers or clients who need to access Wi-Fi, so they don’t have access to your main network.
  4. Protect your devices. Hackers can use a stolen laptop, smartphone or tablet to access your network. Maintain an inventory of equipment, and make sure your employees know to secure any company devices when not in use.
  5. Back up your data. Store data in several places, using off-site and cloud-based services. If you become a victim of a cyberattack, you’ll be able to restore operations quickly without having to pay for a ransomware decryption key.
  6. Strengthen passwords. Enforce strict company-wide policies for creating strong passwords, using different passwords for different applications and changing passwords on a regular basis.
  7. Educate employees. Develop an employee training program to ensure everyone understands security policies and procedures. Schedule refresher courses periodically to keep employees informed.
  8. Increase email security. Train your employees on how to spot a phishing attempt by paying close attention to URLs and reading emails carefully, even those appearing to come from a known sender. Ask them to avoid opening unknown or unexpected email attachments (especially compressed or ZIP files) or clicking on links.
  9. Separate your important data. Reduce the damage of a potential security breach by making sure your data isn’t all stored on one device or in one place. For instance, don’t keep your payroll information on the same device you use to process credit card payments. That way, if one of your devices is compromised, some of your data will still be safe.
  10. Implement an incident response plan. Documenting what to do in the event of a security breach—such as who to notify and where backups are stored—can save your organization valuable time in a crisis.

Cyber training and protocols can make a crucial difference in reducing or eliminating the number of cybersecurity breaches.

References:

  1. https://transition.fcc.gov/cyber/cyberplanner.pdf
  2. https://www.navyfederal.org/resources/articles/small-business/protect-your-business.php
  3. https://www.sans.org/security-awareness-training/resources/social-engineering-attacks/?utm_campaign=2020%20Social%20Media&utm_content=145945029&utm_medium=social&utm_source=twitter&hss_channel=tw-41655252
  4. https://www.ibm.com/developerworks/library/se-cyberindex2014/index.html#:~:text=IBM%20Security%20Services%202014%20Cyber%20Security%20Intelligence%20Index.,names%2C%20emails%2C%20credit%20card%20numbers%2C%20and%20passwords%E2%80%94were%20stolen.

CDC Recommends Avoiding Traveling over Thanksgiving

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The U.S. Centers for Disease Control and Prevention “strongly” recommends that Americans avoid traveling to see family members and friends over Thanksgiving. With the spread of the disease exploding in the U.S. and with several dozen states shattering records for daily new confirmed cases in the past week alone, the virus appears to be exponentially spreading across the country with records for new cases per capita being set in midwestern states.

“As we’re seeing exponential growth in cases, and the opportunity to translocate disease, or infection from one part of the country to another leads to our recommendation to, to avoid travel at this time,” said Dr. Henry Walke, CDC’s Covid-19 incident manager commented.

As of Wednesday, 11/18/2029, more than 250,000 Americans have died from COVID-19, according to data compiled by Johns Hopkins University. And, roughly 1 million new COVID-19 cases have been recorded in the U.S. in the past week.

Risk comes not just from the mode of travel, but from transportation hubs that can make physical distancing more difficult.

Holidays typically attract large gatherings, which tend to be associated with higher COVID-19 transmission levels. As a result, you want fewer people gathering than usual, and it’s even better if they’re people already in your “bubble.”

Risk factors to consider before attending a gathering include community spread of COVID-19, both where the gathering is held and attendees are coming from; exposure during travel; the location and duration of the gathering; the number of attendees and capacity for physical distancing; and attendees’ preventive behaviors before and during the gathering, according to broader CDC advice on how to navigate holiday celebrations and gatherings.

The risk level also depends on attendees’ social contacts and exposures over the preceding couple of weeks, M. Kit Delgado, an assistant professor of emergency medicine and epidemiology at the University of Pennsylvania explained. Sitting out this year’s big family gathering can help keep everyone safe — especially vulnerable family members — and avoid overburdening hospitals during flu season.

“Unfortunately, the merriment we crave — eating, drinking and singing together in a cozy room — are among the highest-risk scenarios for transmitting COVID-19,” Delgado said.

The dire COVID-19 infection numbers already had people reconsidering their Thanksgiving plans. AAA estimated that fewer Americans will travel for the holiday than last year — though this year’s number still hovers around 50 million people.

References:

  1. https://on.mktw.net/3pGIPEF
  2. https://www.npr.org/sections/coronavirus-live-updates/2020/11/19/936715870/dont-travel-for-thanksgiving-cdc-warns

Innovation and Professional Developmemt

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Most CEOs and leaders of organizations view training and professional development of their team members to be an expense instead of being a capital investment.

Every business leader knows that innovation is key to success. To be innovative, a company must be able to adapt to disruptive technology and disruptive change. This is only possible when everyone in the company’s leadership and executive team are committed to personal and professional growth.

Innovation doesn’t occur automatically within an organization. It only happens when the leaders encourages and individuals in an organization are growing and embracing change, taking on new challenges, learning new skills, entertaining new ideas. Innovation is the result of personal growth. Thus, the key is the ability to come up with fresh new ideas to keep the operation running and the products and services fresh.

Personal growth and professional development

Many leaders consider training to be an expense. When the macro economy stalls and money becomes tight within the organization, they cut the training and professional development budget line items first.

A company’s ability to take full advantage of every macro economic cycle requires employees with strong life skills: overcoming fear, managing emotions, building empathy, better communication, etc.

While training on job skills is important, training life skills can create those breakthrough moments where people transcend their limitations and grow into the person they need to be to move to the next level.

https://twitter.com/bizzidotco/status/1326827499985268740?s=21

Additionally, successful CEOs and leaders of organizations are lifelong learners themselves. They never rest on their accolades and laurels. Instead, they devour new information, seek new perspectives, challenge themselves to become the best they can be.

Innovation doesn’t come from hard work and long hours. It emerges from the personal growth of everyone involved.

Personal growth rarely results from hard work and long hours. It comes from spending time and energy on learning, growing and getting better. It comes from developing the courage to let go of being comfortable and transforming yourself into someone better.

Innovation is crucial to survive and grow.

Innovation is a very important factor to ensure consistent growth for an organization from a future point of view. Organizations are innovative when leaders can let go of the past, put aside the fear of change, create a compelling vision and learn to accept and then transcend their own strengths and weaknesses.

References:

  1. https://www.inc.com/geoffrey-james/the-key-to-innovation-is-personal-growth.html
  2. https://www.entrepreneur.com/article/319397

Vaccines Show Greater than Ninety Percent Efficacy

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“It’s not vaccines that save people; it’s vaccinations that will actually save people.” Edward Kelly, director of the WHO’s work on service delivery and safety

Biotechnology firm Moderna announced this week that preliminary results from large scale trials indicated that its coronavirus vaccine candidate demonstrated nearly 95 percent efficacy at preventing the illness.  This news comes on the heals of Pfizer’s announcement last week of it coronavirus vaccine candidate showed 95 percent efficacy (94 percent for adults over 65 years).

Efficacy refers to the performance of a treatment under ideal and controlled circumstances, and effectiveness is performance under real-world conditions. Clinical trials take place in a controlled environment to test if a vaccine is safe and if it works.

The efficacy rate means that COVID-19 symptoms were prevented for more than 90 percent for Pfizer’s coronavirus candidate and near 95 percent for Moderna’s candidate of participants who received the vaccine.

Pfizer plans to seek emergency use authorization for the vaccine, the company said.  This leave Pfizer’s vaccine on track to go into distribution by the end of the year if health regulators at the FDA permit.

Public health officials warn that the development of an effective COVID-19 vaccine represents the beginning of the challenge to vaccinate the world. “It’s not vaccines that save people; it’s vaccinations that will actually save people,” Edward Kelly, director of the WHO’s work on service delivery and safety, said.

A few of the significant challenges to vaccinate the world relate to vaccine supply, storage and distribution.  For example, Pfizer’s experimental vaccine requires ultracold storage conditions of about minus-70 degrees Celsius to ensure it remains effective.  While, Moderna’s vaccine can be kept at refrigerator temperatures for a month and frozen at minus-20 degrees Celsius for up to six months.

Additionally, there appears to be a steady reluctance among Americans and people across the globe to take the vaccine.  Convincing Americans that coronavirus vaccines are safe and effective will be another challenge thanks to the politicization of the vaccine development process by both sides of the aisle.

The U.S. Food and Drug Administration (FDA) will ultimately decide whether to authorize vaccines from Pfizer, Moderna and other candidates currently in large scale trials based on safety and effectiveness results that have been carefully reviewed by both government and independent health experts.

Health care workers should be given the highest priority to receive the vaccine and given to workers in essential industries, people with certain medical conditions, and people age 65 and older.

Bottom line, no vaccine is 100% effective, and whatever protection vaccines may provide, people should continue to wear masks, maintain social distancing, wash hands frequently, not touch their face and avoid crowded indoor gatherings until public health officials determine and the infection numbers demonstrate that the virus is under control.

References:

  1. https://www.washingtonpost.com/world/2020/11/16/who-vaccine-moderna-pfizer/
  2. https://www.wsj.com/articles/pfizers-covid-19-vaccine-95-effective-in-final-results-company-to-seek-approval-within-days-11605699996
  3. https://time.com/5907908/biden-administration-covid-19/?utm_source=twitter&utm_medium=social&utm_campaign=editorial&utm_term=health_covid-19&linkId=104044772

Measuring Oxygen Levels at Home

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With a pulse oximeter, you can monitor your oxygen levels and have a better measure for whether you need to contact your healthcare provider.

Some COVID-19 patients have dangerously low levels of oxygen, which is being called “silent hypoxia.”

When your body doesn’t have enough oxygen, you could get hypoxemia (low oxygen in your blood) which may lead to hypoxia (low oxygen in your tissues) when your blood doesn’t carry enough oxygen to your tissues to meet your body’s needs. These are dangerous conditions. Without oxygen, your brain, liver, and other organs can be damaged just minutes after symptoms start.

Many doctors are recommending that individuals testing positive for COVID-19 monitor their oxygen levels at home with a pulse oximeter. Pulse oximeters are devices you place on your fingertip to measure the amount of oxygen in your blood. These devices use small beams of light that pass through your finger to measure how much oxygen your blood is carrying and your pulse.

Normal oxygen level

A normal oxygen level measured by a pulse oximeter is around 97%. Medical experts start to worry oxygen level drops under 90% because this can affect the amount of oxygen going to your brain and other vital organs. Levels below 80% are considered dangerous and increase the risk of organ damage.

Usually, people with low oxygen levels appear uncomfortable, sometimes even to the point of appearing to be gasping for air. Although, doctors do not clearly understand why some COVID-19 patients have such low levels of oxygen without appearing uncomfortable.

Doctors are divided on whether home monitoring of oxygen levels with a pulse oximeter. In an opinion piece for The New York Times, one ER doctor recommended home oxygen monitoring for patients with COVID-19 because they “believed that information about oxygen levels may help some people seek care earlier if their oxygen level begins to drop”.

Benefits of using a pulse oximeter

Checking oxygen levels at home is beneficial for those diagnosed with COVID-19 or with symptoms that are highly suggestive of infection.

Monitoring your oxygen levels can provide reassurance. If you notice your oxygen levels dropping, you can reach out for medical help.

“The key to taking care of yourself at home with COVID-19 is to carefully monitor your symptoms, especially coughing, wheezing, shortness of breath, and fever, and to inform your healthcare provider about any worsening symptoms. “Paying attention to how you’re feeling is your best guide,” Michael S. Lipnick, M.D., assistant professor of anesthesia and critical care at the University of California, San Francisco, says.

COVID-19 is a viral respiratory illness. Most cases of COVID-19 are relatively mild and can be treated at home. Its symptoms are fever, dry cough, and, sometimes, shortness of breath. These range from mild to severe, and the most serious cases can be fatal, particularly in people who are older or have underlying medical conditions.

References:

  1. https://www.webmd.com/asthma/guide/hypoxia-hypoxemia#2
  2. https://blogs.webmd.com/webmd-doctors/20200428/what-is-a-pulse-oximeter-and-can-it-help-against-covid19
  3. https://www.consumerreports.org/medical-symptoms/covid-19-pulse-oximeters-oxygen-levels-faq/

Turmeric Natural Anti-Inflammatory Properties

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Turmeric is derived from a plant similar to ginger and has long been used for medicinal purposes. “Turmeric has natural anti-inflammatory compounds called curcuminoids, and these curcuminoids have been associated with a positive effect on various diseases,” says Anya Guy, a Mayo Clinic dietitian. Those diseases include Type 2 diabetes, obesity, inflammatory bowel disease and cancer.

Curcumin anti-inflammatory properties make it a potential treatment for a number of health conditions, including reduced pain and increased ease of movement in people with osteoarthritis. One study found that taking turmeric extract three times daily was comparable to taking a 1,200-milligram dose of ibuprofen daily for arthritis pain. However, more research is necessary to confirm these effects.

In addition to its anti-inflammatory properties, research suggests that curcumin has many other health benefits. Among them are antioxidant, metabolic-regulating, antimicrobial, immune-modulating, mood-enhancing, neuroprotective and anti-cancer effects.

A study published in the Proceedings of the National Academy of Sciences shows curcumin, an active ingredient in turmeric, effectively kills certain cancer cells. While research continues on the role turmeric plays in treating cancer, preclinical studies demonstrate curcumin stops the growth of breast cancer cells in the laboratory, but it’s not known if this happens in humans since the body quickly breaks down curcumin, making it difficult to study. High-quality human studies are needed to confirm these findings, and guide effective and safe use of turmeric as a supplement.

Other research suggests that curcumin may reduce cholesterol and triglyceride levels. In addition, it may lessen some of the symptoms of rheumatoid arthritis, such as joint swelling and morning stiffness. Other areas of investigation include curcumin’s effect on Crohn’s disease, certain cancers, depression, diabetes, joint pain and irritable bowel syndrome.

When taken by mouth or applied to the skin, turmeric — and the curcumin it contains — appears to be generally safe when limited to less than 8 grams a day. That said, different amounts often are recommended depending on the health condition being addressed, and higher doses have been used for limited periods of time. High doses or long-term use may cause gastrointestinal upset for some people.

When ingested as a superfood or when turmeric is used as a spice in culinary cuisine, the curcumin it contains appears to be generally safe among cancer patients. But dietary food sources are different than turmeric supplements or when it is taken as a pill. There is little research to ensure turmeric supplements are safe when used in combination with cancer treatments, including surgery, radiation and chemotherapy.

The use of supplements, like turmeric, among cancer patients undergoing cancer treatment can be a concern. Supplements are not standardized like prescription medications, meaning the dose is not regulated and purity cannot be guaranteed. What you get may differ from bottle to bottle and among brands, and there can be variables depending on what specific part of the plant is used. Many supplements that have powerful anti-inflammatory effects, like turmeric, have blood-thinning properties, which can increase the risk of bleeding and cause complications around the time of surgery.

References:

  1. https://newsnetwork.mayoclinic.org/discussion/home-remedies-are-there-health-benefits-of-turmeric/?mc_id=us&utm_source=newsnetwork&utm_medium=l&utm_content=content&utm_campaign=mayoclinic&geo=national&placementsite=enterprise&cauid=100721
  2. https://newsnetwork.mayoclinic.org/discussion/mayo-clinic-q-and-a-turmeric-use-in-breast-cancer-treatment/?utm_source=facebook&utm_medium=sm&utm_content=post&utm_campaign=mayoclinic&geo=national&placementsite=enterprise&mc_id=us&cauid=100502&linkId=104085792&fbclid=IwAR3un2cLDzM1wrCo8KHjh7MBqDg28JMQa5xLWtBuUZdRL3cHSWyKLlTGwOo
  3. https://newsnetwork.mayoclinic.org/discussion/mayo-clinic-q-and-a-turmerics-anti-inflammatory-properties-may-relieve-arthritis-pain/?mc_id=us&utm_source=newsnetwork&utm_medium=l&utm_content=content&utm_campaign=mayoclinic&geo=national&placementsite=enterprise&cauid=100721

Cyber Secure by Design

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In 2019, victims lost $2.7 billion to cybercrime, according to the Federal Bureau of Investigation.

When it comes to ransomware attacks and data breaches, most cybersecurity experts agree that it’s not a matter of if, but when your business or organization will become a target or a victim of cybercrime. In CyberEdge Group’s 2019 Cyberthreat Defense Report, an astounding 78% of surveyed organizations admitted being victims of cyber attacks. That’s why it’s important to have the right incident response tools and plans in place.

Cybersecurity must become a priority and a core business objective for organizations of all sizes and technology orientation. In order to conduct business and navigate today’s increasingly complex technology threat environment, it is critical for businesses and organizations to devote their time, talent and treasure to securing and building resiliency in cyber technology equipment, systems and protocols.

Cyber security incident plan

Organizations need a written incident response plan, spelling out the necessary steps to address a cybersecurity incident, vulnerability assessments and details on who is is notified, who is responsible for implementing the plan after a data breach.

An incident response plan is a documented, written plan with 6 distinct phases that helps cyber professionals and IT staff recognize and deal with a cyber security incidents like a data breach or ransomware attacks. An incident response plan should be set up to address a suspected data breach in a series of phases. Within each phase, there are specific areas of need that should be considered. The incident response phases are:

  1. Preparation
  2. Identification
  3. Containment
  4. Eradication
  5. Recovery
  6. Lessons Learned

Cybersecurity needs to become core to an organization’s overall business strategy. Organizations and boards need to take effective steps to become “secure by design”. They need to ensure security procedures, controls and policies are integral within all levels of the organization, in all technology solutions and business process from the outset.

Cyber security solutions need to provide the latest cyber threat protection required for an organization’s operations. Whether a business’s digital transformation is migrating to the cloud, application development, leveraging the power of the IoT or integrating IT and operational networks, taking a “secure by design” approach is crucial for business continuity by identifying, responding to, and protecting against known and unknown threats and minimizing the potential effects on core assets.

Shortage of cyber security and IT staff

In most organizations, there exist a critical shortage of cyber security staff. As a result, it has become nearly impossible for organizations to review the plethora of cyber alerts, not to mention investigate and respond to all security incidents. Statistics show that the average time to identify and remediate a cyber security breach is over 100 days. Additionally, the Mandiant Security Effectiveness Report 2020 found that 53% of successful cyber attacks infiltrate organizations without being detected, and 91% of all incidents didn’t generate an alert.

To help address this shortage, the security industry is developing tools to perform automated incident response. An automated tool can detect a cyber security condition, and automatically execute an incident response playbook that can contain and mitigate the incident. For example, upon detecting traffic from the network to an unknown external IP, an incident playbook runs, adding a security rule to the firewall and blocking the traffic until further investigation.

By supplementing manual incident response with automated playbooks, organizations can reduce the burden on security teams, and respond to many more security incidents, faster and more effectively.

Weakest link

Cyber-resiliency also involves recognizing that security is no longer solely a technology or governance, risk and compliance issue. Instead, the whole workforce, including both technical and non-technical employees, should be a student of cybersecurity. Since cyber security is as strong as the organization’s weakest link.

Research participants felt that their respective organizations had invested adequately in cyberthreat solutions. Although four in five respondents (81.7%) felt their employers had invested adequately, that means one in five (18.3%) was not confident in this regard. Given the sophistication and magnitude of today’s cyber threats and the advancements in modern cyber threat hunting technology, the survey results are discouraging.

To implement truly robust and effective measures, businesses and organizations must employ multi-faceted risk mitigations solutions like:

  1. Centrally manage and promulgate robust teleworking solutions to empower and enable employees, customers, and third parties.
  2. Leverage role-based rather than location-based identity and access management solutions, analytics, and controls.
  3. Establish two factor authentication, such as manual phone calls, a system of shared secrets, or other authentication controls.

Technology:

  1. https://www.itproportal.com/features/cyber-security-awareness-month-2020-six-experts-share-their-thoughts-on-staying-safe-online/
  2. https://cyber-edge.com/wp-content/uploads/2019/03/CyberEdge-2019-CDR-Report.pdf
  3. https://www.itgovernanceusa.com/blog/how-long-does-it-take-to-detect-a-cyber-attack
  4. https://www.fireeye.com/current-threats/annual-threat-report/security-effectiveness-report.html
  5. https://www.securitymetrics.com/blog/6-phases-incident-response-plan#:~:text=An%20incident%20response%20plan%20is%20a%20documented%2C%20written,incident%20like%20a%20data%20breach%20or%20cyber%20attack.
  6. https://www.ey.com/en_us/consulting/covid-19-steps-to-defend-against-opportunistic-cyber-attackers?WT.mc_id=10642922&AA.tsrc=paidsearch
  7. https://www.cynet.com/incident-response/incident-response-plan-template/

Becoming Financially Responsible | Vanguard

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  • Live within your means by earning more than you spend.
  • Prepare for both an income shock and a spending shock.
  • Build a strong credit history.
  • Continue to learn and grow your financial literacy muscle

Most people do fall somewhere on the spectrum of financial responsibility.

Keep income > spending

The math behind living within your means is simple: When you subtract what you spend from what you earn, the result should be positive. If it’s negative, you’re living beyond your means.

If you’re in the positive, keep it up. Try to save even more, if you can. If you’re in the negative, don’t panic. Take control:

  • Distinguish between your wants and needs. This may be easier said than done. If you don’t have easy access to another form of transportation, a car is a need. A nice car is a want.
  • Create a budget. Just having a general goal in mind for how much you can spend on certain expenses—food, entertainment, housing, transportation—over a certain time frame can help you make smarter spending decisions.
  • Avoid your spending triggers. Do your best to maintain your discipline, and try to resist temptation. If bargain shopping is your downfall, unsubscribe from promotional emails to reduce temptation. If you overfill your cart when you go to the grocery store before dinner, don’t shop on an empty stomach.

Prioritize your savings

Prepare for an emergency

Having emergency money means you’ll be less likely to need a loan from a friend, a family member, or an institution if your car breaks down or your roof leaks. Even if your emergency stash falls short, it can still lower the amount you have to borrow (and pay back, possibly with interest).

There are two types of emergencies you should prepare for: a spending shock and an income shock. A spending shock pertains to a onetime unexpected expense, such as paying for car repairs after an accident. An income shock represents a sudden loss of continuous income (for example, experiencing a layoff).

Getting started may feel daunting, but begin small and build your savings over time. We recommend setting aside at least $2,000 to prepare for a spending shock. Consider keeping this money in a low-risk investment like a money market fund. That way, your money will be easy to access and won’t change much in value over time.

For an income shock, aim to have at least 3 to 6 months of living expenses set aside. If you’re retired, try to have 12 months of living expenses saved. Don’t be afraid to start small and work your way up: Tally your unavoidable living expenses for one month. Divide the amount by 12. Save that amount each month. When you reach that savings goal in one year, do it again until you have a few months of savings to fall back on.

It is recommended to save money for an income shock in an easily accessible account like a taxable money market account.

Get ready for retirement

You’re responsible for your retirement savings. The details of your retirement—the age at which you stop working, where you live, and how—are up to you.

Here are the top 3 things you can do to prepare for retirement:

  • Enroll in your employer’s retirement plan if one is offered. (If you don’t have a retirement plan benefit, you still have options, such as an IRA.) 
  • Save, or work toward saving, 12%–15% of your gross (pre-tax) annual income, including any employer contributions.
  • Invest your savings in a diversified, low-cost portfolio that complements your time frame and risk tolerance.

You’ll need to consider your monthly expenses when you retire. Most of them will most likely stay the same, but you may need to review new items in your budget (such as Medigap or long-term care insurance) as well as expenses you’ll no longer need to consider (such as payroll taxes, clothes, and gas for work). You’ll also need to determine your monthly income from Social Security, pensions, or any other part-time work or passive income that you may be expecting in retirement.

Give yourself credit

Your credit history refers to how you use money. Your credit report is a record of money-related activity (balances, charges, and payment history) on credit cards, some bills (such as utility bills), and loans associated with your name and Social Security number. A credit score is a number based on your credit report giving potential lenders a sense of how you handle debt payments and bills.

You need to establish a credit history to get credit. If you don’t have a credit history, it can be hard to get a job, a credit card, an auto loan, an apartment lease, or a mortgage. Before a potential employer, lender, or landlord takes on the risk of giving you something, they want to see evidence you can handle it. In the eyes of a potential lender, your credit report and credit score are good measures of how financially responsible you are. Having a strong credit history and a high credit score can also lower your cost to borrow by qualifying you for a lower interest rate.

For example, if you have excellent credit and qualify for a $20,000 auto loan with a 1.5% interest rate for 5 years, you’ll pay about $772 in interest over the course of the loan. If you have fair credit and qualify for a loan with a 3.5% interest rate for 5 years, you’ll pay over $1,800 in interest—a difference of over $1,000 that you could’ve saved or invested.

Review your credit report for accuracy each year. You’re entitled to a free copy of your credit report once a year, but there may be a charge for getting your credit score.

It’s go time

Smart money management skills can take time to develop. Start by holding yourself accountable for the financial decisions you make. You have a lot to gain by spending less than you earn, preparing for an emergency, taking control of your credit, and saving for retirement. But if you don’t take steps to be financially responsible, you also have a lot to lose.

References:

  1. https://investornews.vanguard/becoming-financially-responsible/

Net Worth Statement

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The process of calculating personal net worth may well be the only exercise in financial planning that savers and investors actually enjoy. It, with a personal cash flow statement, provides savers and investors with a financial scorecard of where you stand along the path of financial security.

“A personal income and expense statement [cash flow] goes hand-in-hand with a net worth statement because it allows you to see sources of income and expenses while working and retired,” David Bizé, a financial professional in Oklahoma City, Oklahoma, said. “It helps you determine how much can reasonably be saved for financial goals as well as project whether your financial goals will be satisfied long term.”

Calculate your net worth

A net worth statement is a list of what you own (assets) and what you owe (liabilities).

Your assets would include any possessions of value, including:

  • Bank and brokerage accounts
  • Real estate
  • Retirement accounts (IRAs and 401(k))
  • Pension plans
  • Stock options
  • Cash value life insurance
  • Other property, such as artwork

To estimate the value of the personal property in your home, a good rule of thumb is to use 25 percent to 30 percent of its fair market value.

Into the liability column falls any debt you may have, such as:

  • Mortgage
  • Car loans
  • Student loans
  • Credit card balances
  • Child support
  • Alimony
  • Back taxes
  • Medical debt

To calculate your net worth, simply subtract what you owe from what you own. If you own more than you owe, your net worth will be positive. If you owe more than you own, it’s negative.

Appearances can be deceiving, the numbers never lie. Your neighbor with the big house and the luxury cars, for example, may exude a high net worth lifestyle, but if they’re up to their nose in debt, or not saving for their retirement, they may have a smaller net worth than the family next door who lives more modestly.

As a rule of thumb, your net worth should be roughly equal to six times your annual salary by age 60, or that your net worth by age 72 (the new age at which required minimum distributions from your IRA must begin) should be 20 times your annual spending. Other financial pundits suggest that you should aim to be net worth positive by age 30, and have twice your yearly salary socked away for retirement by age 40.

According to the U.S. Federal Reserve, the average net worth of all families in the U.S. rose 26 percent to $692,100 between 2013 and 2016, the most recent year for which data are available.  But the average net worth by age group breaks down as such:

  • Younger than age 35: $76,200
  • Ages 35-44: $288,700
  • Ages 45-54: $727,500
  • Ages 55-64: $1,167,400
  • Ages 65-74: $1,066,000
  • Ages 75 and older: $1,067,000

The ideal net worth differs for everyone and depends on your lifestyle, geographic location, income potential, and investment returns. The age at which you plan to retire also plays a role. The longer you work beyond your full retirement age, the less you need saved.

At the end of the day, all that matters is that your net worth is appropriate for your future financial plans, your financial goals and your lifestyle.

References:

  1. https://blog.massmutual.com/post/net-worth-calculate?utm_source=facebook&utm_medium=social_pd&utm_campaign=brand_traf_contentsyndication&utm_content=static_election_6200129223294_learn&utm_term=demo_fin_int_all&fbclid=IwAR1x-0otWLiM1UTNrFC5pLTEcXYkRr-wls4qucKmW6VfVjCjSry1dZr4Frg
  2. U.S. Federal Reserve, “Changes in U.S. Family Finances from 2013 to 2016: Evidence from the Survey of Consumer Finances. Table 2: Family median and mean net worth, by selected characteristics of families, 2013 and 2016 surveys,” September 2017.