Risk Services Of Arkansas - March 2020

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W e’re reaching the end of winter, which means the weather is finally starting to get better. Spring is right around the corner, and I look forward to getting back on my motorcycle. Arkansas has some of the most beautiful routes to ride on. Yes, I really do have a motorcycle. I’ve been riding since I was 12 years old. I started out on dirt bikes and eventually got my first street bike as a teenager. In high school, I had two or three street bikes, each a little bigger than the last. Finally, I graduated to a full-fledged Harley-Davidson Fat Boy. My current bike is a Street Glide, which is my second Harley, and I really like it. There’s something about being out on the road that I’ve always loved. It’s hard to describe, but I guess it’s the exhilaration and freedom of being out in the elements that really gets my blood pumping … My wife and I often ride together, which is a little surprising considering how risk-averse she is. But my wife enjoys it as much as I do, and that’s something we can share together. I have all the accessories for the Street Glide so that when my wife rides with me, she’s as comfortable as possible on the back. Of course, when I ride alone, all of that stuff comes off. The bike just looks better that way, and you have to look cool while riding a motorcycle by yourself. I’ve met a lot of people who’ve wanted to ride a motorcycle but, for one reason or another, just never have. I suppose a lot of hesitation is due to its inherent danger. This is reasonable. While I’ve been riding long enough to know how to be safe, there was a period in my life when I stopped riding because it was dangerous. When I was a single dad, I knew I couldn’t be taking unnecessary risks because I needed to be there for my kids. Once my kids were grown and relatively self-sufficient, I got back on the road. That was about 10 years ago now, and it’s still just as fun as the first time I rode again. If the danger is keeping you away from realizing that dream of riding, know that almost every Harley-Davidson dealership has access to a safety course. These courses are generally taught by experienced, certified instructors who want to help people ride properly and safely. Learning how to ride safely

does a lot to manage the risk and reduce the danger. These safety courses can also be valuable to experienced riders. To get my motorcycle license in Texas, I had to take a safety course. Even though I’d been riding dirt bikes and street bikes for years, I was amazed by how much I didn’t know about the safety aspects of proper riding when I took that course! To anyone who’s been wanting to try riding a motorcycle, I say go for it. Riding is one of the best experiences, and as I mentioned before, Arkansas is a beautiful place to ride. The landscape all up around Fayetteville and Eureka Springs is amazing, and nothing beats Scenic Byway 7 from Hot Springs to Harrison. That ride is spectacular. With the weather warming up, I look forward to getting back on those roads again very soon. I hope to see you out there!

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We’ve all heard the saying, “A picture is worth a thousand words,” and for businesses, this is especially true. Images used on a website and in marketing materials contribute to a specific vision and encourage customers to buy into a service or product. However, obtaining and using those images requires much more than a quick search on Google. To make the biggest splash while avoiding heavy penalties that can tank your business, follow these tips when searching for images. Presume all images are protected by copyright. Never assume that an image you find while browsing the internet is free to use. It may be easy to download one you like and use it on your website, social media account, or blog, but it can have devastating consequences. Someone who wrongfully uses copyright material worth at least $2,500 may face up to five years in prison and up to $250,000 in fines according to federal statute. Play it safe by assuming every image or photograph you IS THAT PICTURE WORTH $1,000 ? How to Avoid Copyright Infringement for Your Business Even if an image isn’t under copyright, you still might not have permission to use it. Find the source of the image, and inquire about using it for your own business. The image itself may have certain conditions you need to meet before you can use it. For instance, a licensing agreement may require you to pay a fee, give credit to the original creator, or guarantee the image’s use as-is without further alteration. In other instances, ask the photographer, designer, or artist for permission to use the image and agree to include a watermark or a link to their website. Find and use free images instead. Several websites, such as Pexels, Pixabay, and Morguefile, provide hundreds of photos for businesses to use for free and without worry of copyright infringement. Creative Commons is also a great resource to consult. This nonprofit provides free licenses and tools that make copyright material easy to understand. You may need to meet some agreements under a Creative Commons license, but afterwards, you can access and use numerous photos. find online is protected by copyright law. Always ask permission for use.

You have two options in front of you. They both sound great, are backed by research, and could transform your business for the better, but you can only choose one. Which do you commit to? When you’re faced with two equally worthwhile options, science says the best way to make a decision is to flip a coin. When you flip a coin, you’re not really leaving the decision up to chance; you’re actually calling on your intuition to guide you. The practice is often regarded as unscientific, but there’s a lot of research to support making intuitive decisions. Friederike Fabritius and Hans W. Hagemann, authors of “The Leading Brain: Neuroscience Hacks to Work Smarter, Better, Happier,” explain how we develop that “gut feeling.” Intuitive decisions are driven by two structures in your brain: the basal ganglia and the insula. The basal ganglia are connected to movement and building habits. The insula, part of the cerebral cortex, becomes engaged when you experience pain, feel love, listen to music, or even enjoy a piece of chocolate. Neuroscientists believe the insula is responsible for self-awareness, particularly for recognizing changes in your body. When you have to solve a problem, your basal ganglia start working on a solution, even if you aren’t consciously thinking about it. If you make a conscious decision that agrees with the subconscious solution of your basal ganglia, your brain gives off a subtle reward. The decision doesn’t have to be logical to feel right — that’s your gut feeling. However, if the conscious and subconscious parts of your brain don’t agree, your insula detects the discrepancy and registers a threat. It’s the “I have a bad feeling about this” response. Fabritius and Hagemann note that gut feelings “represent the most efficient use of your accumulated experience.” According to the authors, flipping a coin is the best way to really listen to your basal ganglia and insula. Your subconscious brain has already made a decision; flipping a coin helps you test your intuition about each option. If the coin lands on heads and you feel relieved, then heads is the right choice. However, if the coin lands on tails and you’re uncertain or want to flip again, then that’s your intuition saying the other option is the better choice. So, the next time you’re caught in a pickle, grab the nearest quarter and put your intuition to the test.

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On the Other Side of the Screen

HOW TO REDUCE THE BIGGEST RISK TO YOUR COMPANY

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Loss of reputation or brand value

In the early days of business, the biggest risk companies faced were criminals sneaking in and breaking open the safe. Today, thieves are still a problem, but they no longer have to get their hands dirty to hurt your business. The biggest risk modern companies face is cybercriminals lurking on the other side of the computer screen. Allianz Global Corporate & Specialty (AGCS) is a global insurance company that conducts the Allianz Risk Barometer. This survey, which incorporates the views of a record 2,718 experts in over 100 countries, provides insight into the biggest risks facing businesses today. As of 2020, these experts agreed that cyber incidents rank as the most important business risk globally. The top 10 risks identified by the Allianz Risk Barometer 2020 are: • Cyber incidents • Business interruption • Changes in legislation and regulation • Natural catastrophes • Market developments • Fire, explosion • Climate change (increasing volatility of weather) Have a Laugh!

New technologies

Macroeconomic developments

Just seven years ago, cyber incidents ranked 15th on the barometer. However, as companies increase their reliance on data and IT systems and cybercriminals become more sophisticated, the risk has become more apparent. In the wake of many high-profile data breaches in recent years, cyber incidents bumped the former top peril, business interruption, to second place. In addition to being a top global risk, cyber incidents are considered among the top three risks businesses face here in the United States. Over 60% of businesses experienced phishing and social engineering attacks in 2018, and these attacks can be costly. In 2019, IBM Security reported that an average data breach cost $3.92 million due to lost profits, downtime, fines, lost customers, and other factors. While there are ways to reduce your risk of suffering a cyber incident — including training employees in cybersecurity strategy and limiting access to data — most experts agree that there is no way to prevent all cyberattacks. Instead, companies are encouraged to assess their risk and create plans to quickly respond to cyberattacks and get their business running again with little downtime.

Easy way out on pg. 4

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INSIDE This Issue

Wait, Brad Rides a Motorcycle?! page 1

Avoiding Copyright Infringement for Your Business The Science Behind Gut Feelings page 2 The Biggest Risk to Your Company Sudoku page 3

How Your Vibes Affect Your Business page 4

ARE YOU VIBING WITH YOUR BUSINESS? Boost Your Company’s Culture With ‘Five Frequencies’

I f you dive deep into the tactics of successful businesses and startups, a common thread among them is that culture reigns king. More and more value is placed on fostering an uplifting atmosphere for employees, which allows them to generate better business. The general consensus says great culture is built over time and can take many tries in an attempt to get it “just right.” But one book suggests that you might not need to look very far to pinpoint the biggest influence behind company culture. In “Five Frequencies: Leadership Signals That Turn Culture Into Competitive Advantage,” a team of four authors compile their years of extensive experience working with companies to execute cohesive strategies for building effective culture. Jeff Grimshaw, Tanya Mann, Lynne Viscio, and Jennifer Landis have witnessed company cultures of every type be successful and fail. They concluded that culture doesn’t cultivate from the many but, rather, is affected by the few. In this case, the few are the leaders of the business. The authors assert that leaders are, at every moment, transmitting signals to their team, whether intentionally or not. Teams take cues from those who lead them, so if leaders aren’t dialed into the frequencies they’re giving

off, they could be transmitting troublesome signals. Instead, leaders should always be dialed into their “vibes” and be particularly aware of five specific frequencies: 1. Their decisions and actions 2. What they choose to reward and recognize 3. What they do and do not tolerate 4. The way they show up informally 5. How they compose formal communications

“Five Frequencies” illustrates how correctly tuning into these frequencies can give leaders the tools they need to make bad culture good and good culture great. Full of tried-and-true examples from real companies around the globe, this guide proves that culture is not something tangible you can hold, nor is it a procedural element you can simply implement. It’s something people feel, and it’s built and explained by the behaviors that surround it. This means it can be difficult to manage, measure, and, most importantly, change. But if leaders take the time to look at themselves and the actions they exemplify, they’ll have a solid foundation to start.

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