Latest news and updates on issues affecting business. - Bluefin Group
Latest news and updates on issues affecting business.
October 2016
In this issue • Online crimes are on the rise and cost companies £1 billion per year • Recent HSE news and prosecutions. • Social media 'humanises' companies • Which are you: 'fat and lazy' or adaptable and dedicated? • Common causes of commercial fires
Online crimes are on the rise and cost companies £1 billion per year Within the past 12 months, the frequency of cyber crimes has been meteoric, as a person is now about 25 times more likely to be a victim of fraud via the computer than robbed on the street. Despite this fact, 9 out of 10 UK small and medium-sized enterprises (SMEs) have no cyber insurance in place, according to new industry research. This lack of robust security has granted free rein to cyber criminals - last year, UK businesses lost an estimated £1 billion to online crime, according to Get Safe Online and Action Fraud. Unfortunately, the frequency and severity of these cyber attacks has not spurred companies to become more proactive. Instead, 86 per cent of UK companies believe that they could effectively withstand and repel a cyber attack, according to Juniper Research. Yet, this would be a false assessment, since in actuality about 50 per cent of UK companies are unprepared for a cyber attack, according to Government figures. Fortunately, it is never too late for your company to begin organising defences against potential cyber attacks. One of the most beneficial strategies is to stay abreast of the newest and most damaging cyber crimes threatening businesses, such as the following four: 1.
Mandate Fraud: Cyber criminals pretend that they are from an organisation with which your company regularly does business or one of your suppliers in order to convince you to change a direct debit, standing order or bank transfer mandate to deposit into their account. 2. CEO Fraud: A cyber criminal generally will pretend to be the CEO and contact someone within the finance department to request payments to be made into specific bank accounts that are separate from the company. 3. Corporate Employee Fraud: Current or former employees obtain digital files or sensitive information through fraud or misuse of corporate cards and expenses. 4. Hacking: A cyber criminal can gain access to your company’s digital files and sensitive information by exploiting weaknesses in your cyber defences, which include your server, an employee's personal computer or your company’s email and social media accounts.
Recent HSE news and prosecutions Join European Health and Safety Week The annual European Health and Safety will begin Monday October 24th and run through to Sunday October 30th. This year’s theme is ‘Healthy Workplaces for All Ages’ and as a part of the campaign, the Trades Union Congress will be organising various initiatives to help UK businesses bolster their health and safety practices. If you want your business to participate, click here. HSE Surprise Construction Site Inspections Start 3rd October Beginning on October 3rd 2016, HSE inspectors will be conducting surprise inspections at construction sites where refurbishment projects or repair works are underway. These inspections will last through to November 4th 2016. During these unannounced inspections, inspectors will ensure that high-risk activities are being properly managed to guarantee the health and safety of construction workers. If a serious breach in health and safety legislation is identified by an inspector, there will be immediate enforcement action - including fines and penalties. In addition, inspectors have been encouraged to provide guidance on how to establish a safe work environment. Company Director Jailed Following Worker’s Death Thorn Warehousing Ltd company director Kenneth Thelwall was charged under Section 37 of the Health and Safety at Work Act, sentenced to 12 months in prison and ordered to pay costs of £4,000 after he was found responsible for the death of one of his workers. In addition, the company was charged under Section 2 of the Health and Safety at Work Act, fined £166,000 and ordered to pay £10,400 in costs. The 51-yearold employee was using a remote controlled mobile elevated working platform (MEWP) to load a truck when it fell on him. In its investigation, the HSE found that Thelwall had never properly trained the employee and had not conducted any sort of risk assessment for the MEWP. Textile Factory Owner Fined for Insurance Failings William Cuthbert, owner of the textiles firm BC Shirts was charged with breaching the Employers’ Liability (Compulsory Insurance) Act 1969, fined £1,000 and ordered to pay costs of £9,143.35 after he had failed to demonstrate over the course of six months that he had ensured that his compulsory employers’ liability insurance was current.
Social media ‘humanises’ companies An estimated 1 out of 5 customers visit a company’s social media accounts when they are considering making their initial purchase from that company, according to a survey conducted by online business review publisher, Trustpilot. This initial visit is vital, as potential business can almost instantly be won or lost during this interaction. To ensure that the initial visit is able to create the favourable impression that your company would like, your best strategy would be to establish a robust social media presence. Companies that are active on social media are viewed as being more ‘human’, approachable and helpful by nearly 1 out 3 customers, according to Trustpilot. Along with this positive opinion, 31 per cent of customers tend to trust companies more if they have active social media accounts. To cultivate this welcoming environment, consider these suggestions: •
• •
•
Create a plan: Your company’s social media plan should outline the type of content that you want to share and promote, how often you will post, and how you will respond to comments and criticisms delivered by customers. Organise regular polls and contests: Both activities can actively engage your customers, build a rapport and gain valuable insight into their opinions. Be an ambassador: It is important that you publish content that humanises your company and allows you to build relationships with your customers. This could include posting useful content related to your product or service, highlighting customers’ positive reviews or promoting special offers. Publish engaging content: Content with relevant images receives 94 per cent more views than the same content without visuals, according to marketing experts. In addition, cognitive studies have found that a person can retain up to 65 per cent of visual information after three days.
Whilst you implement these beneficial practices, here are several to avoid: •
•
Sharing inconsistently: Avoid posting only on holidays. It does not inspire much confidence if it is December and the last time your company posted on Twitter was to wish your customers a ‘Happy Easter’. Expecting too much: Social media is not a cure-all that will quickly produce results. Just like any of your company’s other marketing strategies, building a rapport and engaging your customers will take time.
Which Are You: ‘Fat and Lazy’ or Adaptable and Dedicated? At a Conservative Way Forward event, Trade Secretary Liam Fox, who was an outspoken supporter of Brexit, stated that Britain had become ‘too fat and lazy’ to seek out new export markets, and business leaders are more interested in going ‘golfing on a Friday afternoon’. The meaning of the trade secretary’s statement is clear - he believes that Britain’s economic decline (exacerbated by Brexit) is a result of poor leadership among UK business leaders. However, according to a recent economic survey, the trade secretary may be mistaken. In fact, according to the Office of National Statistics (ONS), Britain’s trade deficit in goods and services fell from £5.6 billion in June to £4.5 billion in July. The driving force behind this economic improvement is the considerable boost that UK exports have seen post-Brexit - the weakened pound has made British-made exports more appealing to international customers. In the light of the current economic climate, it may be beneficial for your company - regardless of your industry - to consider marketing your goods toward international customers online. Whether your company already has an online presence or if you are interested in establishing one, here are seven general practices that may help you: 1. 2. 3. 4. 5.
Research the market for any specific regulations and standards you must meet, and understand your risks. Offer the option of paying with multiple types of currency. Provide customers with the ability to change the language on your website. Keep your shipping costs reasonable. Build and maintain an online presence on several different social media platforms, such as Instagram, Twitter and Facebook. 6. Invest in search engine optimisation to ensure potential international customers can find your online shop quickly. 7. Contact the British embassy in your target country - they will have up-to-date market information.
Common causes of commercial fires Fires can be devastating for a company, as they can destroy files, damage a building’s structural elements and its equipment, and disrupt regular business operations. In fact, according to the Chief Fire Officers Association, 60 per cent of private businesses never recover from a fire, as the average commercial fire claim is more than £25,000. For that reason, it is important to know the common sources of ignition in order to bolster your company’s protections: • •
•
• • •
Electrical faults: Roughly 25 per cent of all accidental fires are caused by faulty wiring, inadequate or improper electrical insulation and overloaded electrical sockets, according to Government statistics. Smokers’ materials (including lighters and e-cigarettes): If left unattended, e-cigarette batteries can become overchargedcausing them to explode. In addition, unextinguished cigarettes can contribute to starting a fire. Equipment or appliances (including cooking appliances): Operating equipment that produces heat or sparks near flammable or combustible materials causes a significant number of fires annually. In addition, defects in cooking appliances - especially gas appliances - can be a source of ignition. Although it may seem like the potential for fires at the office is high, prevention is simple and easy: Keep work areas free of waste paper, rubbish and other flammable items. Regularly have office equipment and appliances inspected and serviced.
The content of this newsletter is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly. © 2016 Zywave, Inc. All rights reserved.
bluefingroup.co.uk Bluefin Insurance Services Limited is authorised and regulated by the Financial Conduct Authority.
October 2016
In this issue • Online crimes are on the rise and cost companies £1 billion per year • Recent HSE news and prosecutions. • Social media 'humanises' companies • Which are you: 'fat and lazy' or adaptable and dedicated? • Common causes of commercial fires
Online crimes are on the rise and cost companies £1 billion per year Within the past 12 months, the frequency of cyber crimes has been meteoric, as a person is now about 25 times more likely to be a victim of fraud via the computer than robbed on the street. Despite this fact, 9 out of 10 UK small and medium-sized enterprises (SMEs) have no cyber insurance in place, according to new industry research. This lack of robust security has granted free rein to cyber criminals - last year, UK businesses lost an estimated £1 billion to online crime, according to Get Safe Online and Action Fraud. Unfortunately, the frequency and severity of these cyber attacks has not spurred companies to become more proactive. Instead, 86 per cent of UK companies believe that they could effectively withstand and repel a cyber attack, according to Juniper Research. Yet, this would be a false assessment, since in actuality about 50 per cent of UK companies are unprepared for a cyber attack, according to Government figures. Fortunately, it is never too late for your company to begin organising defences against potential cyber attacks. One of the most beneficial strategies is to stay abreast of the newest and most damaging cyber crimes threatening businesses, such as the following four: 1.
Mandate Fraud: Cyber criminals pretend that they are from an organisation with which your company regularly does business or one of your suppliers in order to convince you to change a direct debit, standing order or bank transfer mandate to deposit into their account. 2. CEO Fraud: A cyber criminal generally will pretend to be the CEO and contact someone within the finance department to request payments to be made into specific bank accounts that are separate from the company. 3. Corporate Employee Fraud: Current or former employees obtain digital files or sensitive information through fraud or misuse of corporate cards and expenses. 4. Hacking: A cyber criminal can gain access to your company’s digital files and sensitive information by exploiting weaknesses in your cyber defences, which include your server, an employee's personal computer or your company’s email and social media accounts.
Recent HSE news and prosecutions Join European Health and Safety Week The annual European Health and Safety will begin Monday October 24th and run through to Sunday October 30th. This year’s theme is ‘Healthy Workplaces for All Ages’ and as a part of the campaign, the Trades Union Congress will be organising various initiatives to help UK businesses bolster their health and safety practices. If you want your business to participate, click here. HSE Surprise Construction Site Inspections Start 3rd October Beginning on October 3rd 2016, HSE inspectors will be conducting surprise inspections at construction sites where refurbishment projects or repair works are underway. These inspections will last through to November 4th 2016. During these unannounced inspections, inspectors will ensure that high-risk activities are being properly managed to guarantee the health and safety of construction workers. If a serious breach in health and safety legislation is identified by an inspector, there will be immediate enforcement action - including fines and penalties. In addition, inspectors have been encouraged to provide guidance on how to establish a safe work environment. Company Director Jailed Following Worker’s Death Thorn Warehousing Ltd company director Kenneth Thelwall was charged under Section 37 of the Health and Safety at Work Act, sentenced to 12 months in prison and ordered to pay costs of £4,000 after he was found responsible for the death of one of his workers. In addition, the company was charged under Section 2 of the Health and Safety at Work Act, fined £166,000 and ordered to pay £10,400 in costs. The 51-yearold employee was using a remote controlled mobile elevated working platform (MEWP) to load a truck when it fell on him. In its investigation, the HSE found that Thelwall had never properly trained the employee and had not conducted any sort of risk assessment for the MEWP. Textile Factory Owner Fined for Insurance Failings William Cuthbert, owner of the textiles firm BC Shirts was charged with breaching the Employers’ Liability (Compulsory Insurance) Act 1969, fined £1,000 and ordered to pay costs of £9,143.35 after he had failed to demonstrate over the course of six months that he had ensured that his compulsory employers’ liability insurance was current.
Social media ‘humanises’ companies An estimated 1 out of 5 customers visit a company’s social media accounts when they are considering making their initial purchase from that company, according to a survey conducted by online business review publisher, Trustpilot. This initial visit is vital, as potential business can almost instantly be won or lost during this interaction. To ensure that the initial visit is able to create the favourable impression that your company would like, your best strategy would be to establish a robust social media presence. Companies that are active on social media are viewed as being more ‘human’, approachable and helpful by nearly 1 out 3 customers, according to Trustpilot. Along with this positive opinion, 31 per cent of customers tend to trust companies more if they have active social media accounts. To cultivate this welcoming environment, consider these suggestions: •
• •
•
Create a plan: Your company’s social media plan should outline the type of content that you want to share and promote, how often you will post, and how you will respond to comments and criticisms delivered by customers. Organise regular polls and contests: Both activities can actively engage your customers, build a rapport and gain valuable insight into their opinions. Be an ambassador: It is important that you publish content that humanises your company and allows you to build relationships with your customers. This could include posting useful content related to your product or service, highlighting customers’ positive reviews or promoting special offers. Publish engaging content: Content with relevant images receives 94 per cent more views than the same content without visuals, according to marketing experts. In addition, cognitive studies have found that a person can retain up to 65 per cent of visual information after three days.
Whilst you implement these beneficial practices, here are several to avoid: •
•
Sharing inconsistently: Avoid posting only on holidays. It does not inspire much confidence if it is December and the last time your company posted on Twitter was to wish your customers a ‘Happy Easter’. Expecting too much: Social media is not a cure-all that will quickly produce results. Just like any of your company’s other marketing strategies, building a rapport and engaging your customers will take time.
Which Are You: ‘Fat and Lazy’ or Adaptable and Dedicated? At a Conservative Way Forward event, Trade Secretary Liam Fox, who was an outspoken supporter of Brexit, stated that Britain had become ‘too fat and lazy’ to seek out new export markets, and business leaders are more interested in going ‘golfing on a Friday afternoon’. The meaning of the trade secretary’s statement is clear - he believes that Britain’s economic decline (exacerbated by Brexit) is a result of poor leadership among UK business leaders. However, according to a recent economic survey, the trade secretary may be mistaken. In fact, according to the Office of National Statistics (ONS), Britain’s trade deficit in goods and services fell from £5.6 billion in June to £4.5 billion in July. The driving force behind this economic improvement is the considerable boost that UK exports have seen post-Brexit - the weakened pound has made British-made exports more appealing to international customers. In the light of the current economic climate, it may be beneficial for your company - regardless of your industry - to consider marketing your goods toward international customers online. Whether your company already has an online presence or if you are interested in establishing one, here are seven general practices that may help you: 1. 2. 3. 4. 5.
Research the market for any specific regulations and standards you must meet, and understand your risks. Offer the option of paying with multiple types of currency. Provide customers with the ability to change the language on your website. Keep your shipping costs reasonable. Build and maintain an online presence on several different social media platforms, such as Instagram, Twitter and Facebook. 6. Invest in search engine optimisation to ensure potential international customers can find your online shop quickly. 7. Contact the British embassy in your target country - they will have up-to-date market information.
Common causes of commercial fires Fires can be devastating for a company, as they can destroy files, damage a building’s structural elements and its equipment, and disrupt regular business operations. In fact, according to the Chief Fire Officers Association, 60 per cent of private businesses never recover from a fire, as the average commercial fire claim is more than £25,000. For that reason, it is important to know the common sources of ignition in order to bolster your company’s protections: • •
•
• • •
Electrical faults: Roughly 25 per cent of all accidental fires are caused by faulty wiring, inadequate or improper electrical insulation and overloaded electrical sockets, according to Government statistics. Smokers’ materials (including lighters and e-cigarettes): If left unattended, e-cigarette batteries can become overchargedcausing them to explode. In addition, unextinguished cigarettes can contribute to starting a fire. Equipment or appliances (including cooking appliances): Operating equipment that produces heat or sparks near flammable or combustible materials causes a significant number of fires annually. In addition, defects in cooking appliances - especially gas appliances - can be a source of ignition. Although it may seem like the potential for fires at the office is high, prevention is simple and easy: Keep work areas free of waste paper, rubbish and other flammable items. Regularly have office equipment and appliances inspected and serviced.
The content of this newsletter is of general interest and is not intended to apply to specific circumstances. It does not purport to be a comprehensive analysis of all matters relevant to its subject matter. The content should not, therefore, be regarded as constituting legal advice and not be relied upon as such. In relation to any particular problem which they may have, readers are advised to seek specific advice. Further, the law may have changed since first publication and the reader is cautioned accordingly. © 2016 Zywave, Inc. All rights reserved.
bluefingroup.co.uk Bluefin Insurance Services Limited is authorised and regulated by the Financial Conduct Authority.
