Remittances and Europe - Moldova

Remittances are a worldwide issue. All too often people associate “Remittances” with Africa or Asia. But remittances are a feature in any country where economic conditions are poor and where there are too many people for the jobs available. In these circumstances people migrate in the hope of finding work and being able to send money home to help feed and clothe family members who have remained behind.

This short video from the World Bank highlights conditions in Moldova, the poorest country in Europe. Its economy relies on money sent home by the hundreds of thousands of Moldovans who work outside the country. In the current global economic environment, it is inevitable that remittances will fall. Although it is still too early to tell by exactly how much, it is clear that declining remittances could have a large impact on families trying to cope with the economic downturn.

Payment Systems - Do you know how a cheque works?

Market research in the UK has confirmed that that consumer understanding of the oldest payment system, the cheque clearing process is still very low. To counter this, the UK’s Cheque and Credit Clearing Company (C&CCC) has launched an interactive online film that helps explain the different stages involved in clearing a cheque. It is educational, informative and very clearly presented.

Cheque clearing processes are basically universal, so even if you don’t live in the UK the principles covered are still valid. You can watch this online movie at: http://www.chequeandcredit.co.uk/files/candc/flash_files/candc_animationv6.swf

Payment Systems in India – A Vision for the Future

Recently the Reserve Bank of India released a report entitled ‘Payment Systems in India - Vision 2009-12‘. In this the Indian central bank discusses initiatives it has taken and what it plans to do to improve security of cards, make ATMs more accessible to the public, make banking more accessible to the public, improve its efficiency, timings and reduce risks. It notes that the future is in mobile payments and offers its outlook on alternate methods to improve the Indian payments industry.
This succinct summary of the Reserve Bank of India’s proposal MEDIANAMA is a “must read”. Access it at RBI’s Vision For Mobile & E-payments, Major Projects | MediaNama

The Cheque is More than a Payments Instrument

Stanley Epstein, Principal Associate, Citadel Advantage

So the venerable old cheque has been singled out and “tapped” for termination – in the UK at least. Of course, in the new world of electronic payments and instantaneous communications, the demise of the cheque was inevitable. A payment instrument devised in a simpler time, the cheque representing a negotiable claim on the bank account of the drawer, was a major innovation in its day. It represented a new way to make payments in a manner that avoided the actual transfer of cash or bullion. The humble cheque as a payment instrument spawned other major innovations such as the clearing and settlement processes that are major features of all electronic payment, clearing and settlement systems to this very day.

As a payment and a financial instrument, the cheque reigned supreme for over two centuries and spread across the face of the globe. But, as with all empires, the cheque’s star must eventually set. The cheque has become an anachronism in today’s high-tech, high-speed world. It is an expensive system to operate and worst of all its “flow” is all the wrong way.

In a technology driven, high-speed, risk averse world the way in which the cheque operates is a barrier to the smooth high-speed payments processing operation that puts all the right checks and balances in the right places and in the right sequence.

All other payment types flow from the payer to the payee (now that is a simple word for the receiver that today seems to have gone out of fashion). The opposing flow of the cheque from the recipient (payee) to the payer’s bank is just a hindrance to modern processing practices as well as a huge source of risk.

Of course the cheque is more than a payment instrument, though many people do not know this. The cheque served (and still does in many places) a multiplicity of financial roles, vital in day-to-day business activities.

Just consider four of these.
1. A means of commercial and consumer credit,
2. An access point to commercial bank lending,
3. A medium of exchange, and
4. A payment instrument.

In many countries, even today, the cheque still serves as a credit and loan instrument. Post dated cheques give buyers credit extended by a merchant or store, while the self-same cheques with their legal basis and their negotiability give that same merchant immediate access to discount facilities (i.e. the cash) at commercial banks.

During the six and a half month bankers strike in Ireland in 1970 the humble cheque served as a medium of exchange too, with very little default once the banks got back to operating again.

Until recently in most countries the only “payment” law in existence was that relating to the cheque. Cheque laws and banking laws run hand-in-glove. The legal corpus surrounding other types of payment instruments is, with a few exceptions, sketchy and in some cases nonexistent. Within the realms of the law the cheque or “Bill of Exchange”, which it really is, still has a lot of life left in it. Most countries created significant laws and legal principles based on the cheque/ bill of exchange.

The bill of exchange still remains the basic instrument of international trade and finance. While the UK may well abolish the use of the cheque for day-to-day payments purposes it is unlikely that the instrument will suffer an ignominious end. Trade practices and international conventions will ensure that the cheque/ bill of exchange will still be with us for a long time to come.

Training Course - Risk Management - Focus on Fraud

Join us in Madrid, Spain on 22 & 23 February 2010 for our 2-day training course “RISK MANAGEMENT - FOCUS ON FRAUD.”

Fraud is on the increase. Recent studies have shown a surge in economic crimes. The statistics reveal that the three most common forms of crime are theft, accounting fraud and corruption.

Of these, fraud has shown a particularly sharp rise. The rise in fraud stems from a mixture of increased opportunities and growing incentives. Companies have been reducing the number of people employed to monitor workers at a time when employees are more tempted to break the rules because their living standards are eroding and their jobs are looking shakier. The proportion of frauds committed by middle managers has shown a particularly sharp rise, from 26% in 2007 to 42% today.

Just consider the following questions;

• Can your bank or organization cope with fraud?
• Can you identify a fraud in your working environment?
• Are you maximizing your staffs’ potential to reduce fraud and error in your systems?
• How aware are you or employees of fraud?
• Do they have a clear understanding of the role they play in detecting fraud?
• Do they understand you organization’s fraud policies and procedures?

The “Risk Management - Focus on Fraud” course in Madrid on 22 & 23 February 2010 is a 2-day intensive course on fraud and how it presents huge challenges for banks, requiring them to radically modify behavior and increase their vigilance in many of the traditional risks associated with banking activities.

Ensure that your staff are able to cope with the growing fraud threat.For more details including a fully descriptive course brochure e-mail us at courses@citadeladvantage.com today. Please indicate FRAUD-MADRID in the subject line.

Training Course - Migrant Worker Remittances - Issues & Opportunities

Join us in Johannesburg, South Africa on 25 & 26 January 2010 for our 2-day course “MIGRANT WORKER REMITTANCES - ISSUES & OPPORTUNITIES.”

Money sent home by migrants constitutes the second largest financial inflow into many developing countries, exceeding even international aid. Remittances contribute to economic growth and to the livelihoods of needy people worldwide. Moreover, remittance transfers can also promote access to financial services for the sender and recipient, thereby increasing financial and social inclusion.

Although African workers send home more than US$40 billion to the region each year, restrictive laws and costly fees hamper the power of remittances to lift people out of poverty, according to a recent report by the UN's rural poverty agency, the International Fund for Agricultural Development (IFAD).

Even if your organization already has a Remittance Program or Product, this course will be of immense value to you and your staff.

Remittances are not as simple as a monetary transfer from A to B. It is the fine details of the remittance processes and the subtle nuances of being a stranger in a foreign land or simply a receiver in a remote location in one’s own country that constitute the major problems for remitters and receivers.

Get to grips with these and other uniquely African problems faced in providing remittance services in this region.

Understand how new technologies - such as the mobile phone - and existing infrastructure - particularly post offices or small retail outlets - could vastly increase the reach of remittance services.

Learn about the unique problems being faced by both Remitters and Receivers – problems that banks and other financial institutions are uniquely placed to help solve.

Remittances represent a huge business opportunity for banks and other organizations to satisfy the needs of this huge and growing market.

Cement your position in the Remittance Market by attending “MIGRANT WORKER REMITTANCES - ISSUES & OPPORTUNITIES” in Johannesburg on 25 & 26 January 2010.

For full details including a Course Brochure e-mail us at courses@citadeladvantage.com Please state REMIT-JHB in the subject line.

How to Fit a Password - Learn about the Most Popular Passwords on the Internet

A fascinating view of a total lack of security consciousness. You need to read this article in the Ecommerce Journal. Access it by clicking on the article title below.

How to fit a password, learn about the most popular passwords on the Internet Ecommerce Journal

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Technology is Revolutionizing Payments and Remittances

Are you thinking outside the box? I have come across this video on YouTube by Dr. Patrick Dixon. Patrick Dixon is a Futurist, author 12 books including Futurewise, conference speaker who works with many of the world's largest corporations on global trends, new technology forecasts, biotech, health care, marketing, risk management, product design, innovation, motivation and customer insight.

Here he talks about mobile payment systems, micropayments, mobile phone credit card transactions and loans. This is thinking outside the box at its finest. As a bank or financial institution are you up to the “Technology Challenge” or will you lose you advantage to those bold enough to seize the day and step into the future?

Computer Programmers Charged in Madoff Affair

The Securities and Exchange Commission has accused Jerome O’Hara and George Perez of provideing the technical support necessary to produce false documents and trading records, and took hush money to help keep Bernard Madoff’s massive Ponzi scheme going.

Last week the two computer programmers were charged for their role in helping Madoff cover up the fraud for more than 15 years. The SEC alleges that the two provided the technical support necessary to produce false documents and trading records, and took hush money to help keep the scheme going.

“Without the help of O’Hara and Perez, the Madoff fraud would not have been possible,” said George S. Canellos, Director of the SEC’s New York Regional Office. “They used their special computer skills to create sophisticated, credible and entirely phony trading records that were critical to the success of Madoff’s scheme for so many years.”

According to the SEC’s complaint, filed in U.S. District Court for the Southern District of New York, Madoff and his lieutenant Frank DiPascali, Jr., routinely asked O’Hara and Perez for their help in creating records that, among other things, combined actual positions and activity from BMIS’ market-making and proprietary trading businesses with the fictional balances maintained in investor accounts. O’Hara and Perez wrote programs that generated many thousands of pages of fake trade blotters, stock records, Depository Trust Corporation (DTC) reports and other phantom books and records to substantiate nonexistent trading. They assigned file names to many of these programs that began with “SPCL,” which is short for “special.”

A separate computer internally known as “House 17” was used to process BMIS investment advisory account data at the direction of Madoff, DiPascali and others. The SEC alleges that O’Hara and Perez knew that the House 17 computer was missing a host of functioning programs necessary for actual securities trading and reporting. According to the SEC’s complaint, they recognized that the trades being entered into House 17 and the account statements and trade confirmations being sent to investors did not reflect actual trades.

The SEC alleges that O’Hara and Perez had a crisis of conscience in 2006 and tried to cover their tracks by attempting to delete approximately 218 of the 225 special programs from the House 17 computer. But they did not delete the monthly backup tapes. O’Hara and Perez then cashed out hundreds of thousands of dollars each from their personal BMIS accounts before confronting Madoff and refusing to generate any more fabricated books and records.

According to O’Hara’s handwritten notes from the encounter, one of them told Madoff, “I won’t lie any longer. Next time, I say ‘ask Frank,’” meaning that Madoff should rely on DiPascali alone to create the false data and reports.

The SEC’s complaint alleges that Madoff responded by telling DiPascali to offer O’Hara and Perez as much money as necessary to keep quiet and not expose the misrepresentations. O’Hara and Perez considered the offer and demanded a salary increase of nearly 25 percent along with one-time bonuses in late 2006 of more than $60,000 each. They stated to DiPascali at the time that they did not ask for more because a greater amount might appear too suspicious. DiPascali then managed to convince O’Hara and Perez to modify computer programs so that he and other 17th floor employees could create the necessary reports themselves.

This is the SEC’s latest enforcement action concerning the Madoff fraud since the scheme collapsed last December. The Commission previously charged Madoff and BMIS, DiPascali, and auditors David G. Friehling and Friehling & Horowitz CPAs, P.C. The SEC also charged certain feeders with committing securities fraud through a Ponzi scheme perpetrated on advisory and brokerage customers of BMIS. Madoff, DiPascali and Friehling have all pleaded guilty to criminal charges related to their conduct.

Among other things, the SEC’s complaint seeks financial penalties and a court order requiring O’Hara and Perez to disgorge their ill-gotten gains.

“Quants” say their bosses don't understand them

A staggering two thirds of quantitative analysts (Quants) think their supervisors do not understand the work they do, according to a survey from training firm “7city Learning”.
The poll of almost 400 active quants and risk professionals reveals a significant gap in understanding between them and their supervisors.

Quants and risk managers have been pointed to by many economists as one of the principle reasons the global financial crisis escalated so precipitously.

Yet 86% of quants feel their supervisors' level of understanding of the job of a quant is the same or worse than it was a year ago. In addition, 70% feel that the level of understanding of the role of quants within their institutions has decreased or has not changed at all from a year ago.

Paul Wilmott, director of 7city's Certificate in Quantitative Finance course, says: "These numbers are alarming. They indicate that even with the events of the past year, financial institutions are still not taking the importance of financial education seriously, especially as it pertains to improving relationships and understanding between quants and their managers."
A recent report by financial regulatory agencies called on financial services firms to make substantial and sustained investments in IT infrastructure if they are to overcome severe underlying weaknesses in their risk management capabilities.

The Senior Supervisors Group (SSG) that comprises watchdogs from seven countries (United States, Canada, France, Germany, Japan, Switzerland, United Kingdom) says that underlying weaknesses in governance, incentive structures, information technology infrastructure and internal controls require substantial work to address.

RBI Proposes New Payment Systems

The Reserve Bank of India (RBI) has proposed an action plan on payment systems which have been targeted to be achieved in the next one-to-three years. This includes putting in place alternate settlement arrangements in the event of non-availability of RBI as a settlement bank.

Additionally a road map for the National Payments Corporation of India (NPCI) is to be finalized. NPCI has been set up as an umbrella organization by the banking community to take over the retail payment system activities.

All large-value and time-critical payments will be processed only by electronic means. All bank branches will be enabled with Indian Financial System Code (IFSC) and MICR codes. The intention is to leave the user with the choice of payment product for retail and small-value transactions.

The RBI document ‘Payment systems in India — Vision 2009-12’ is available on the central bank’s website for public comment. The document may be downloaded at http://rbi.org.in/scripts/PublicationReportDetails.aspx?UrlPage=&ID=573

New projects and major initiatives listed in the plan include;

• Implementing a new and feature rich RTGS system – The need to migrate to a new version of RTGS that could leverage on advancements in technology, provide for scalability in volumes, parameterize more features in line with similar facilities available in other countries, result in more flexibility in operations, better liquidity saving features, etc., would be pursued.
• India MoneyLine – A 24x7 system for one-to-one funds transfers – The existing NEFT system operates during weekdays from 9 am to 5 pm and on Saturdays from 9 am to 12 noon. The Bank would pursue the suggestion to consider the need to extend NEFT to function on a 24x7 basis or to develop a new system akin to the Faster Payments Service in the UK which operates on a 24x7 basis.
• India Card – A domestic card initiative –The concept of a domestic payment card (India Card) and a PoS switch network for issuance and acceptance of payment cards would be looked into. The need for such a system arises from two major considerations (a) the high cost borne by the Indian banks for affiliation with international card associations in the absence of a domestic price setter (b) the connection with international card associations resulting in the need for routing even domestic transactions, which account for more than 90% of the total, through a switch located outside the country.
• Redesigning ECS to function as a true Automated Clearing House (ACH) for bulk transactions – Currently, Local ECS (to facilitate bulk electronic transactions with one-to-many and many-to-one variants) is operational at 76 centres. Centralisation of this process is already underway with the launch of credit variant of NECS at Mumbai (and RECS on a pilot basis). The debit variant is also being planned for implementation. The ECS / NECS solution is internally developed and has been in use since long and the need for building a technology and feature-rich ACH network by totally redesigning the existing ECS to provide end-to-end processing in a straight-through manner would be examined.
• Mobile payments settlement network – Mobile phones are expected to emerge as an important channel for transmission of payment instructions. Efficient mobile payments would require real time transfer of funds with adequate security. Currently all inter-bank mobile transfers are payment instructions for settling funds through existing payment systems. This would require building a national infrastructure for facilitating real time mobile payments.

Mobile Money Africa

Mobile Money Africa has just published their November edition. The focus is on 'Banking the unbanked African'. Mobile Money Africa is available as a free PDF download at http://mobilemoneyafrica.com/free-emag?did=2

Migrant Remittance to Developing Nations to Reach $317 bn

Migrant remittance flow to developing countries, will be around $317 billion this year, a lower-than-expected fall from the year-ago level, but will return to the recovery path in years to come, the World Bank has said.

Remittance flow to developing countries will touch $317 billion in 2009, and going forward, the inflows to these nations are expected to remain almost flat in 2010, (with a modest rise of 1.4 per cent) and grow by 3.9 per cent in 2011, the World Bank said in its Migration and Development Brief.

The projected remittance flow this year will represent a 6.1 per cent fall from the 2008 level against the earlier expectation of a 7.3 per cent dip.

The officially recorded remittance flow to developing countries reached $338 billion in 2008, higher than the previous estimate of $328 billion, according to the newly available data with the World Bank.

The report further added the remittance flows this year is likely to witness certain risks, and expected to slow down "in a lagged response to a weak global economy".

In the immediate future, the flows in all the regions are likely to face three downside risks: a jobless economic recovery, tighter immigration controls and unpredictable exchange rate movements.

Global Forum on Remittances

The International Fund for Agricultural Development (IFAD) and the African Development Bank (AfDB) in collaboration with the Inter-American Dialogue (IAD) organized the Global Forum on Remittances 2009, in Tunis. This was held on 22 and 23 of October 2009.

Africans are relying more than ever on cash sent home by relatives working abroad, yet a big chunk of the money gets wasted or lost according to a United Nations study released recently. As much as 20 percent of what workers pay to support families in Africa can get swallowed up in transaction costs.

This report from Voice of America’s “In Focus” examines some of the issues raised at the forum.

US Banks Face Criticism Over Foreign Card Compatibility Issues

The Aite Group estimates that nearly 10 million US cardholders experienced problems using their credit cards abroad in 2008 alone, a majority of which changed their card usage behavior as a result.

The report which is based on a September 2009 Aite Group online survey of 1,019 US resident cardholders who traveled to countries outside of Canada, the Caribbean and Mexico between 2006 and 2009.

For cardholders traveling to Western Europe over the past three years, there is an almost 50% chance that they have experienced some form of problem using a US payment card, says the analyst house.

The Aite Group estimates that 9.7 million US cardholders experienced issues with card payments abroad in 2008, and that the US card industry missed out on $3.9 billion in transactions and $447 million in revenues as a result of the failures.

With European markets moving to smart card-based payments, US travelers are finding their magstripe cards being rejected at retailer Chip and PIN terminals and foreign cash machines. European issuers meanwhile are growing concerned at the higher incidence of counterfeit card fraud occurring on US shores, leading to calls for the US banking industry to switch to the chip-based EMV payment card standard.

"Nearly two-thirds of cardholders adjust payment behavior after a bad experience, directly resulting in lower usage of the problem card," says Nick Holland, senior analyst with Aite Group. "An issue caused by incompatible card technology is treated far more seriously by cardholders than issues stemming from card acceptance, fees or merchant policies. A quarter of cardholders experiencing these types of problems will agree either somewhat or totally that the problem ruined or almost ruined their trip."

Eight Key Issues in Managing Operational Risk

Author: Stanley Epstein

In much the same light as the management of market risk and credit risk is vital to preserve a business. Many banks and firms see operational risk and its management only as a response to the requirements of regulators.

They see operational risk from a totally different viewpoint to the management of market risk and credit risk. The latter two are accepted as being vital to ensure the survival of the business, while operational risk is seen as something else entirely. For many businesses the management of operational risk is perceived as a nuisance with added costs and other inconveniences imposed by some outside bureaucrat.

Of course this perception is totally wrong.

In this article we are going to examine the 8 key issues that one needs to keep in mind when managing operational risk. Let us begin with a definition of operational risk.

“Operational risk is the risk of loss resulting from inadequate internal processes, people, and systems or from external events”.

Operational risk can be equated in a broad sense with unexpected risk, meaning that while we may have a pretty good feel for risks such as credit risk or market risk which can often be anticipated with a fair amount of accuracy, when we get to the operational side this usually is pretty much an unknown quantity.

Let’s look a little more closely at the elements of this definition. What do we understand by some of its components?

"People” - People are employees; our workers. Employees can make mistakes. These could be intentional or unintentional. People also often fail to follow correct procedures which can result in losses.

“Processes” – All business activities are made up of processes. These may be complex sequences of events such as one finds in a factory engaged in manufacture or a more simple sequence of tasks involved in taking an order and dispatching the goods to a purchaser. All activities involve procedures. Just think of all the detail involved in the procedure that we all follow each and every day when we wake up and get ready to leave home to go to work.

If there are deficiencies in an existing procedure, or if no procedure is defined, this could result in losses.

“Systems” – Most procedures require the use of outside apparatus. These could be computer systems or machinery or tools. Getting back to our waking up “process” something like our toothbrush can be seen as such a system.

“External events” – Our processes take place in the wider world. This environment is constantly under threat of disruption. Disruptions could be bad weather, natural disasters, pandemics, political turmoil, social unrest and so on.

Within this context there are eight key issues that need to be addressed if management of Operational Risk is to be effective.

1. Internal Environment. The internal environment relates to how the firm sets the tone and what is called its “risk appetite”. This relates to the firms’ policy in relation to risk and the extent to which the firm is prepared to accept risk. Remember that risk cannot be eliminated entirely but it can be mitigated.
2. Setting Objectives. Based on the firm’s define risk appetite explicit objectives can now be set in terms of “risk events” and their management.
3. Event Identification. This is a definitive list of what risks the firm faces and how they can be identified.
4. Risk Assessment. It is vital that in reviewing the risks these have to be understood in terms of the dangers that they present to the firm. This assessment requires an analysis of and an understanding of what these risks are.
5. Risk response. What is the firm going to do about the risk? What actions is it going to take to reduce and mitigate these risks or to compensate for the potential loss?
6. Control Activities. This is part of the risk management process that in advance develops plans to respond to these previously identified risks.
7. Information and communication. A vital part of managing risk is effective communication and information to people both inside and outside the organization in relation to the roles and the responsibilities they have in responses to the various risks.
8. Monitoring. This is the ongoing process of reviewing and evaluating the business processes and the effectiveness of the risk management programme.

Managing Operational Risk is a continual task. It is not something one does and then simply forgets about. It has to be practiced all the time. To use an old adage “Operational risk management is a journey, NOT a destination”.

About the Author:

Stanley Epstein is a Principal Associate and Director of Citadel Advantage Ltd., a consultancy dealing in bank operations and specializing in Operations Risk and Payment Systems. Citadel Advantage provides comprehensive range of Risk Management & Payments related Training Courses for banks and other financial institutions. Further information and details can be found at http://www.citadeladvantage.com . For regular insights into payments & risk issues, visit Citadel Advantage’s blog at http://citadeladvantage.blogspot.com/

Article Source: ArticlesBase.com - Eight Key Issues in Managing Operational Risk

Eight Steps To Protect Your Corporate Reputation

By Jonathan Hemus

A strong corporate reputation is recognised as a valuable asset, one which takes years to build, and requires constant nurturing to maintain. A crisis, whether a product safety scare, an environmental incident, labour relations, management scandal or online attack, puts that reputation to the test. The outcome can be devastating; but it doesn't have to be.

Rigorous preparation is the most important factor in protecting the corporate reputation in the event of a crisis. More than that, research shows that thorough preparation actually reduces the likelihood of a major crisis happening in the first place. This is because the preparation phase highlights flaws and vulnerabilities that can be addressed, and creates a heightened sense of crisis awareness and vigilance that acts as an early warning system to snuff out potential crises before they escalate and emerge. So engaging in crisis preparation and prevention is one of the best investments you can make.

What are the key areas you should address? Here are eight steps to protect your corporate reputation:

1. Compile a list of reputational risks - involve colleagues from different functions in this process to ensure you cover as many threats as possible. Encourage people to think worst case scenario rather than adopting an attitude of "it could never happen here".

2. Identify your stakeholders - these are likely to include emergency services, regulators, bodies, employees, even competitors and suppliers, as well as the media. Make sure you have up to date contact details always to hand.

3. Work out the best communication methods to reach your stakeholders in a crisis - this can vary from simple telephone calls, emails and briefings through to media interviews and press conferences. Don't overlook online channels: for example, have Twitter accounts set up and ready to go.

4. Form a crisis team - convene a small team of individuals with the relevant expertise and personal qualities necessary to handle a crisis. But remember, you will still need to run the rest of your business, and ensure you have deputies for all team members.

5. Identify and equip a training room - a dedicated room containing items such as direct phone lines, Wi-Fi, fax machine, TV, crisis manual, telephone contact list, whiteboards, flipcharts and so on. An adjacent quiet room, in which statements and other documents can be prepared, is also useful. Make sure that these rooms are out of range of camera lenses.

6. Prepare a crisis manual - a set of clear processes and materials is an invaluable aid to effective crisis management. But make sure it is not so large and detailed that it is unusable in a real incident.

7. Train the crisis team - make them familiar with crisis procedures, test them using simulations, and put spokespeople through professional media training.

8. Make your crisis planning come alive - re-visit the manual regularly, plan a schedule of training courses, and build bridges with your stakeholders before a crisis occurs.

Preparation is essential if organisations want to protect their corporate reputation in the event of a crisis. Sound judgement and skilful leadership will also be required, but having strong foundations on which to apply these skills provides a significant headstart.

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Jonathan Hemus is the founder of Insignia Communications - http://www.insigniacomms.com - a consultancy specialising in corporate reputation management and crisis communication. His experience in crisis management for a range of global corporations and public sector organisations has helped to protect and preserve many reputations. For regular insights into corporate reputation management, log on to Insignia's blog at www.insigniatalks.com

Remittances and Anti Terror Laws

For months, Somalis living in Columbus, Ohio have complained that it has become increasingly difficult to send money home to family members because of banking-industry fears that the funds could end up with terrorists.

Huntington, JPMorgan Chase and Charter One are among the banks that have closed accounts set up by remittance companies, said Omar Tarazi, a local lawyer who has worked with the Somali American Chamber of Commerce and several remittance companies.
Somali leaders said remittances that refugees send home are a lifeline to families and friends struggling in the war-torn African nation. It has few banks, so remittance companies are crucial to sending money home.

You can read the full article at:
http://www.dispatchpolitics.com/live/content/local_news/stories/2009/10/26/copy/REMIT.ART_ART_10-26-09_B3_PEFFS0A.html?adsec=politics&sid=101