“Employee negligence and ignorance” is the biggest security flaw in businesses’ technology, according to a recent survey.

That makes sense: even if your information systems are perfectly secured, employees who fail to follow basic security protocols can undo all of that work with one click or missed step. Employees don’t even have to be malicious; they can simply be unaware of information security best practices.

What are the most common ways employees habitually put company systems at risk?

Social media is a major threat, according to 51% of respondents . Workers are often not aware that letting others access their personal accounts is unsafe—and even if they know that it’s risky, many people fail to follow that advice.

The same is true of mobile devices, with about half of respondents saying employees are careless or ignorant about their use .

Key management is another problem area, with nearly one-third of respondents calling this the biggest security flaw in technology . Perhaps unsurprisingly, most people who have trouble keeping track of passwords say the same thing.

A small number of people said they were most concerned about unpatched systems, malware or data leakage . However, these problems didn’t top the list.

The survey had 236 respondents from a variety of IT and security fields in both private and public sectors.

How You Can Avoid Security Breaches

Hire an IT Company,  it is cheaper than the potential risk of a data breach. Having an IT company on your side will help prevent cyber crime, and they can also take the time to train your employees on how to stay safe.

Access to credit is one of the most important financial tools in America.   With the way credit worthy consumers are determined currently,  however, millions of American adults are left in the dust.  Helping more US consumers obtain access to mainstream financial services requires new insights into individual financial history.  Alternative data (information not found in traditional credit reports) could score up to 90% of the country’s previously unscorable customers.

Who in America currently has a thin or nonexistent credit file?  There are more of them out there than one might realize.  92 million American adults have little to no credit history.  Of that group, 25 million are considered credit invisible, meaning they lack the credit history necessary to establish a credit score.  The lacking in credit history population has a relatively large overlap with the unbanked or underbanked population.  In the US today, 63 million Americans do not have sufficient access to banks.  Many rely on high cost alternative financial services such as check cashing services or pawn shop loans.  

The demographics of people underserved by financial institutions today line up with the demographics excluded from financial services in the past.  Those with little to no credit history are 75% likely to make under $50,000 a year, with 49% making under $25,000 annually.  Beyond income statistics, this group of 92 million Americans are more likely to be Hispanic or African American, recent immigrants to the US, and/or be recently widowed or divorced.  Also included in this cohort are individuals who are young, new to using credit, or have not used credit for a long time.  

Credit invisibility can be costly to the consumer.  When lenders lack sufficient information to determine a borrower’s risk profile, they tend to assume the worst about them.  The interest rates one receives on a loan match their perceived riskiness as a borrower, among other factors.  When a credit invisible consumer goes to borrow money, they could pay a higher interest rate on personal loans.  In the mortgage market, a subprime loan could bring an additional $32,923 in interest compared to an average 30-year mortgage at the prime rate.  Credit invisible consumers are also likely to face higher premiums in the insurance market.  This rule applies to auto, home, and rental insurance.

Borrowing money is something many Americans will have to do during the course of their lives.  60% of Americans could not pay an unexpected $1,000 expense with savings alone.  A third of those unable to pay outright say they would borrow to cover the cost.  Consider how common an unexpected $1,000 expense can be.  Borrowing money at a reasonable interest rate could be the difference between solvency and bankruptcy for an American household.

The solution to credit invisibility is not to force banks to lend to everyone.  Banks need to be selective about the loans they make for a reason.  They have a reason to want their borrowers to be financially responsible individuals.  The problem here is that many financially responsible individuals are not seen by the credit scoring system.  Were alternative data to be leveraged in generating credit score calculations, nearly half of the previously unscorable population could become prime or near-prime borrowers.  Moving over 20 million Americans into scorable credit bands is no small feat.  It would change the lives of people across the country!

What forms of alternative data should scoring agencies look at?  What permissions would they need to access this information?  The 3 alternative data sources identified here are bank transaction data, rental payment records, and telecom and utility bill payments.  All 3 require consumer permission for scoring agencies to use in their calculations. 

The first addition under consideration is bank transaction data.  Credit scoring agencies could look at a consumer’s bank statements to see how money flows into and out of the individual’s account.  An individual who spends quickly and maintains a low balance is less likely to be financially responsible than one who consistently leaves money in their account.  Use of bank transaction data alone could increase prime (or better) consumer numbers by almost 4 million.  Were bank transaction data to be considered for all consumers, the credit unscorable population would fall by 50%.

Next up is rental payment records.  Rent payment reporting is one of the most under-utilized tools for building credit histories.  Many landlords perform credit checks on potential tenants as part of their leasing process, but rental data itself is not included in credit reports.  This omission puts renters at a disadvantage in the credit market next to homeowners.  Both make monthly payments to maintain their access to housing, but only one sees those payments appear in their credit score.  A majority of consumers believe it would be helpful to have rental payment information included in credit reports and factored into credit score calculations. 

The final alternative data source that should be added to credit reporting is telecom and utility billing information.  90% of American adults have at least one utility bill in their name.  Adding this factor to credit reporting would ensure a wide net is cast.  9 million consumers could become scorable thanks to consented telecom and utility data.  Furthermore, people who pay their full utility bills on time show that they are financially responsible.  Adding telecom and utility data to the mix could move 7.5 million US consumers from unscorable or subprime credit bands into prime or near-prime categories. 

While credit reports remain a strong indicator of credit history and past financial reliability, there is an abundance of Fair Credit Reporting Act (FCRA)-compliant information that is not currently used to generate credit scores.  Including this information has the potential to responsibly expand consumer access to credit and support a more inclusive economy.  Credit is used for many purchases in the United States, from homes to higher education.  Reasonable credit terms at the right time could be the break an individual needs on their path to financial prosperity.  Alternative data is there to help.

Do you know who is the Chairman of the Board and Chief Executive in your firm? Even though you may know them by name, do you know in detail what their role involves? These two roles are sometimes confused; even by the people who occupy them.

In this article, we are going to take a closer look at the role of the Chairman of the Board. As we do, you’ll see the skill set that makes someone successful in this position. That’ll give you an opportunity to reflect on your skill set and where your career is heading on the corporate ladder.

Corporate Structure 101

The structure of different companies will vary based on their size and industry. Even so, there are some common characteristics across all companies that you should be familiar with. The corporate structure is all about leadership and accountability within the company.

In large companies, there is an Executive Board occupied by Directors. Some of these directors are responsible for specific operations in the business. 

How the Executive Board Functions

The Executive Board is the highest level of leadership in the company. Its key function is to make strategic decisions for the benefit of the company. Sitting on the executive board are all the most senior managers in the company.

One of these roles is the Chief Executive Officer (sometimes referred to as the president). Other roles are the Chief Financial Officer (CFO), and the Chief Operations Officer (COO). These Directors play a direct role in the day-to-day management and operation of the company.

However, on the board will be Non-Executive Directors that are voted in place by the shareholders. They bring corporate experience from other industries and backgrounds to the company. They also have greater objectivity than the internal executives. 

Chairman of the Board Role

In a nutshell, the Board Chairman is responsible for leading the board meetings. In some companies, the Chief Executive Officer is combined with this role. This has some advantages in that there is no power struggle, and there is unity in strategic direction.

It also has some disadvantages. For example, the Chief Executive Officer tends to be less accountable. There should be checks and balances for everyone in the business. 

So when the Board Chairman is not the Chief Executive, their role is one of facilitating communication and helping the board come to decisions that are reflective of the board’s composite intelligence. A good Board Chairman doesn’t take center stage but helps others shine, and harnesses the valuable thoughts of all on the board. Take a look at the Active RE Board Chairman and you’ll see this is a role that must draw on much experience and skills in communication and negotiation.

Develop Your Leadership Skills

In this article, you’ve read about what’s involved in being the Chairman of the Board. You might say, it is the most important corporate role on the board. The role requires experience, expertise, and outstanding skills in communication and in getting the best from others.

These are the types of key skills you can concentrate on developing at a lower corporate level. Being able to communicate and get the best from others is a major skill that will serve you your whole career.

A successful career in business also involves being well-read. Grow your knowledge base by checking out other business-related articles on our site.