Monthly Archives: February 2018

MetLife, continued

“MetLife Pension-Benefits Executive to Retire,” The Wall Street Journal, February 27, 2018 B10.  Senior executive in charge of the unit that misplaced 13,500 retirees retires.

The cost of not using information.

See prior study.

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Storage

Where does your vendor store your information?  Whose laws apply?

“Justices to Hear Microsoft Case on Email Storage,” The Wall Street Journal, February 27, 2018 B4.  Supreme Court to resolve whether a search warrant to a person in the US (Microsoft) can require that person to turn over materials of a non-US person stored outside this jurisdiction.  At issue is the Stored Communications Act, passed in 1986, which gives some privacy protection to materials stored online.

This involves both questions of governance (does the US government get to control information stored in, say, France, if within the control of a party in the US?  Even though France says the US can’t have it?  Does the DOJ get to ignore laws passed by Congress?)) and questions of storage of information.  Discovery rules in civil litigation go to things within your possession, custody, or control.  Is there any doubt that Microsoft controls where this information is stored?  Why would a search warrant be able to get less information than a litigant in a civil case?  What happens if Microsoft wins?  Who owns the information?  Does ownership matter?

If the Court rules for Microsoft, is the issue back with Congress, to further define (or eliminate) our privacy rights?

Does the government need to obey our laws?  Must Microsoft protect the rights of non-US citizens?

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Filed under Access, Compliance, Controls, Corporation, Duty, Governance, Government, Information, Interconnections, Internal controls, IT, Ownership, Privacy, Protect assets, Security, Third parties

Shaking up GE

GE has had a tough year.  Or two.  So it’s making major changes in the Board.

“Embattled GE Reshapes Board,” The Wall Street Journal, February 27, 2018 B1. Several directors removed after stock dropped 45% in 2017.  Eight directors retiring.

This this a reaction of their failure to govern?  Or just a reaction to bad results?  Will the new board act differently?  Are the shareholders better protected?  Or there cultural problems to be addressed, so the CEO doesn’t fly two jets?

 

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Filed under Board, Corporation, Directors, Duty, Oversight, Shareholders, Uncategorized

Gaps

What happens when you have information, but don’t use it?

“‘I Know He’s Going to Explode,'” The Wall Street Journal, February 24, 2018 A1.  The FBI and the Sheriff’s Department had received multiple notices in advance about the shooter at the school in Parkland who killed 17.  And failed to act.

Does your company have adequate processes for identifying important information, and acting on it?  Does important information get to the right people at the right time?

What’s that worth?  Who pays the price when you get it wrong?

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Filed under Access, Accuracy, Board, Communications, Controls, Corporation, Data quality, Directors, Duty, Duty of Care, Employees, Governance, Information, Internal controls, Oversight, Oversight, Protect assets, Protect information assets, To report, Value, Vendors

Access

Competition is a good thing.  Isn’t it good that airlines are competing based on providing better access to your information?

“Firms Push Better In-Flight Web Access,” The Wall Street Journal, February 26, 2018 B4.  Airlines and satellite providers team up to give passengers faster in-flight web service.  Cost to be included in flight cost.

Oh, great.  Cellphone calls at 35,000 feet.

But it’s a good thing to have better access to information when you are in the air, right?

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Eggs and baskets

“Apple Puts iCloud Keys in China,” The Wall Street Journal, February 26, 2018 B1.  Apple to store encryption keys for China-based customers of iCloud in China.

For all other customers, worldwide, Apple stores the encryption keys in the US.

So who owns those keys?  Are the owners of the iCloud data concerned about this?  Are the keys more or less secure in China rather than the US?  Why did Apple decide to do this?  For the convenience of the users?

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Filed under Access, Controls, Corporation, Duty, Governance, Information, Internal controls, IT, Privacy, Protect assets, Security, Third parties

Refunds

“Citi’s Refund Tab: $335 Million, The Wall Street Journal, February 24, 2018 B10. Bank pays up for failing to lower credit card interest rates.

After you miss a payment, federal law requires credit card issuers to review your payment history after six months, and sometimes to lower your interest rate.  Citibank failed to do this properly for 1.75 million customers, over six years.  Apparently, Citi found the error itself, and reported it to the government.

Isn’t this how things are supposed to work?  The government passes a law, companies put in processes to comply, and monitor their operations to make sure they do comply.  When the monitoring discovers problems, the company reports to the government and refunds the money.

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Filed under Compliance, Controls, Corporation, Duty, Governance, Internal controls, Oversight, Third parties, To report