Enterprise risk management is about risk-based thinking and all of the new international standards start with risk-based thinking. The new standards look at how you’ve identified risks, prioritizing those risks and then looking at what controls you’re going to apply to those risks.

I would expect to see in most modern organizations looking at the 2015 editions of iso management system standards, that those organizations have Risk Registers. For example, a Corporate Risk Register starts to unpack all the high-level risks that are part of the risk horizon for the organization. This includes quality, safety, environment, data security, food, etc. This will allow you to start to unpack the controls.

This enterprise risk management system will starts to identify the issues, show you how to minimize, prevent, avoid them. Your internal auditing function is about asking the question, have we got those things in place?

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As you’d no doubt know, the COVID-19 pandemic has thrown a number of curve-balls to organisations around the world, and while the economy is steadily re-opening, it’s evident that covid transformed consumer spending habits with a number of interesting shopping habits that seem to have been altered. 

Obviously, covid changing consumer behavior is most noticeable in the uptick of online shopping, with consumers spending money on more products and services digitally than ever before, but how big of an uptick?

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Well, a piece from Kochie’s Business Builders used data from a national survey to study this question. Their results showed that 65% of Australians had, in spite of economic circumstances, shopped more than pre-covid-days. In addition to this, a reported 56% of Australians will continue to shop more than pre-covid levels once restrictions are lifted around the country, a clear example of the impact of covid-19 and how it has impacted on consumer behavior.

Their report quotes Paul Rober, the Chief Commercial Officer at Couriers Please, who said that “physical distancing restrictions, travel bans, and business closures have really forced the hand of traditional shoppers who have been historically wary of venturing online.” 

“We saw an unprecedented spike in delivery volumes across the country… so much so, that we put on extra staff and extended our trading to handle the overflow,” Robert said.

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66% of Australians shopped online at least three-times per month during lockdown

This 66% figure was taken from the overall average, with as many as 73% of shoppers under the age of 30 saying they were shopping three-times per month. Just over 26% of respondents said they were shopping around six-times per month.

60% of households missed out on essential items in-store because of panic buying

The impact of panic buying early in the pandemic has now been mapped out. A breakdown of items includes 32% of households forgoing essential pantry items, 27% missing out on toilet paper, 23% not finding cleaning and laundry items and 22% unable to purchase personal hygiene products. This is a clear example of how covid 19 is changing consumer behaviour, the panic created by unsure times highlighted how greediness can lead to others missing out on the opportunity to purchase essential items.  

Health, Beauty, Food & Fashion Products were the most in-demand

This category looked at products that were traditionally over-the-counter purchases that shifted into online sales as the pandemic rolled on. Some of the biggest winning consumer markets in the product breakdown include fashion (40%), food and alcohol (38%), technology and electronics (36%) and health and beauty products (34%).

Under-30’s out-shopped all other age groups

The survey shows that 80% of shoppers under the age of 30 had reported shopping more than previous months, with 67% of those aged 30-50 and 53% of over-50s saying they were shopping more online than pre-COVID. While millennials led the charge, the overall trend is clear to be seen from all age groups in terms of increased online shopping during the pandemic. This could also be attributed to the fact that this age group is traditionally the most tech savvy and aware of sales and promotions that they can take advantage of. They also usually have the least responsibility and therefore more time to spend online shopping.

56% of shoppers will continue to shop more than pre-lockdown 

Younger shoppers are set to lead this trend, with 64% of respondents saying they’ll continue to shop more online. Those aged between 30-50 are also keen online shoppers, with 62% saying they’ll keep their online shopping habits. This dropped to 43% for over 50s, but remains a significantly high figure. The hike in consumer spending over the long term is an example of a positive impact of the covid-19 pandemic as it clearly indicates that the spending habits of the consumer have been altered for the better. It shows that consumers expect a quicker and more convenient shopping experience online and are moving away from shopping at the classic brick and mortar style businesses.

86% avoided physical stores through online shopping

This is perhaps the most substantial of the changes in consumer behaviour due to covid. Australians were listening carefully to government advice, according to the results of the survey. There was a total drop in physical shopping activity by a reported 86% However in other nations such as the United States in which there were lighter restrictions and physical stores remained open this figure would’ve been significantly less.

Saturday is the busiest day for online shoppers

Just under a quarter of online shoppers opted for purchasing on a Saturday, with Wednesday following closely behind. “Purchases on hump day helped many to get through the rest of the week,” according to Kochie’s Business Builders.

44% of online shoppers hunt at night 

The most popular time of day for shoppers was in the evenings, with 49% of sub-30-year-olds reporting purchases at night; this was followed up by 37% of those over 50-years-old opting for night-time purchases. Afternoons are the second most popular time of day to shop, according to the survey results, with 26% of shoppers clicking the ‘buy now’ button in the afternoon.

44% of students and workers procrastinate with online shopping

61% of shoppers under the age of 30 said they’re guilty of shopping while they were supposed to be working or studying. This is possibly down to the added amount of employees working unsupervised remotely. This figure dropped to 42% of shoppers aged between 30-50, and dropped to just 11% of shoppers over the age of 50. 

72% prefer regular, smaller purchases rather than bulk orders

This is an interesting comparison between age groups, with younger buyers opting for regular, small purchases rather than a costly bulk order. Shoppers aged between 30-50 were more likely to buy in bulk, which the authors suggest is due to the fact that they’re the age group “who tend to be the most time poor.”

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Already a fixture in the Asian art scene, digital art spaces are gaining traction globally. Asian buyers and collectors are ahead of the market, and they are very open and receptive to new art mediums.

TeamLab is a Tokyo art museum that was recognised as the world’s first digital art museum. In 2001, they debuted their landmark digital art technology, creating interactive rooms that grew into an eponymous museum that opened in 2018.

No paintings, no sculptures, just artworks displayed using projection-mapping technology.

The first year of its opening saw 2.3 million visitors come through the museum, the largest attendance for a single art institution in the world.

Sydney, Australia embraced a multi-sensory digital art exhibition into traditional museums through Van Gogh Alive.

The show will feature dynamic projections of van Gogh’s most beloved paintings that will shift in sync to a soundtrack while specially formulated aromas are released to fully immerse visitors in a powerful multi-sensory experience. The scale of the show is truly mind-boggling, with the projections covering a space equivalent to more than 30 IMAX cinema screens.

Although the exhibition was temporary, it became one of the most visited art exhibitions, which solidifies digital art connecting new visitors into the art scene to keep these traditional spaces alive.

A combination of traditional art museums closing due to COVID-19 and the popularity of NFT artworks has seen a rise in digital art museums, and these increasing popular digital art shows are here to stay. However, will this impact the traditional art space and tangible artworks be a thing of the past?

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Recently, Superchief Gallery opened a New York space that is being declared the world’s first physical NFT gallery and is currently showing 300 artists’ works on high-resolution screens.

Although the argument stands; there is a poetry to standing next to a work of art, the same canvas that a great artist touched, to study the brushwork and finer detail. Similar to NFT’s (non-fungible tokens) and listening to a song, people will continue to pay to see the real thing. 

Superchief’s gallery director Edward Zipco stated, “one aspect of the NFT market that was severely lacking was a physical presence. It should already be clear that when you look at art history, after Warhol, Polke, Richter, the next to come is not Beeple. And NFTs will not replace physical art any more than NFTs from a Nike sneaker will replace real sneakers.”

Digital art and their physical representation is complex to grasp, and many museums are still hesitant about its conservation and how it will challenge traditional art experts opinions on how art and objects are valued.

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News of the database containing more than 200,000 fake Amazon reviews has called into question the accuracy of Amazon’s review platform, as well as showing signs of a coordinated effort from retailers to secure fraudulent, yet positive reviews for their products. 

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The database coming into view of the public is extremely significant, considering the violations of not only Amazon’s terms of service in terms of genuine and incentivised reviews, as well as clear violations of consumer laws around the globe. 

Those laws have been created to ensure that a product remains subject to both praise and criticism, depending on its effectiveness or quality, so the public can make an informed purchase with the confidence of crowd-sourced information. 

Instead, the researchers at SafetyDetectives who discovered the database, say they’ve uncovered evidence of a coordinated effort that rewards fraudulent reviews with either cash bonuses or free products. 

Database of 200,000 Fake Amazon Reviews Published Online

In total, more than 13 million records were included in the 7-gigabyte database. Information collected included email addresses and phone numbers of vendors, surnames, Amazon account profile information as well as their Paypal account information. 

The team at SafetyDetectives says that they believe that the database was contacted when a new product was listed on Amazon, and the vendor was willing to pay for positive reviews to promote their product. 

After a positive review was left, the reviewer would provide evidence of their post, where they would be paid via Paypal. 

SafetyDetectives says it believes more than 200,000 individuals have been a part of the wide-sprawling fraudulent Amazon review program. The team attempted to find out who the owner of the database was, but said they were unable to determine where it originated. 

“Given the extent of the records and vendors included in the database, it’s possible that the server is not owned by the Amazon vendors running the scam,” says the team responsible for discovering the database of more than 200,000 fake Amazon reviews. 

“The server could be owned by a third party that reaches out to potential reviewers on behalf of the vendors.” 

The team continued to explain that “third parties might post a picture of the product in a Facebook or WeChat group, asking for reviews in return for free products. The server could also be owned by a large company with several subsidiaries, which would explain the presence of multiple vendors.” 

“What’s clear is that whoever owns the server could be subject to punishments from consumer protection laws, and whoever is paying for these fake reviews may face sanctions for breaking Amazon’s terms of service.” 

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The ATO says that “scammers pretending to be from the ‘MyGov’ customer care team” are sending emails telling people they need to verify their identity by clicking on a link. 

It’s imperative that if you have, or in the future receive an email from someone purporting to be from MyGov’s support team that you do not click on any provided links. 

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It’s likely that the link provided will take the user to some form of malicious software that can steal personal information if you enter your legitimate government username and password. 

The ATO says that “you will get email or SMS notifications from myGov whenever there are new messages in your myGov Inbox, however, these messages will never include a link to log on to your myGov account.”

“Always access our online services directly via one of the following: my.gov.au, ato.gov.au, the ATO app.” 

The ATO’s Assistant Commissioner, Ben Foster has said that “these messages will never include a link to log on to your myGov account… this new phishing scam contains classic warning signs like asking people to click a link to confirm their details and spelling errors.” 

“We encourage everyone to be on alert,” Mr Foster concluded. 

ATO Says Watch Out For This MyGov Scam

General manager of Services Australia, Hank Jongen has said that in the wake of scammers becoming more sophisticated, and their scams becoming ever-more convincing, everyone should be critical of emails asking for a confirmation of personal details. 

“If you’ve opened an email that looks suspicious, don’t click any links, open any attachments or reply to it,” he said. “If you’ve received the suspicious email and provided your myGov sign with information, you should take immediate action.” 

“Change your myGov password, and if you’ve provided your banking details, contact your bank,” Jongen said. 

Mr Jongen urged members of the public to contact Service Australia’s scam and identity helpdesk on 1800 941 126 if they believe they’ve come into contact with a scam, handed over details or have additional insight they can give authorities. 

“Staff will be able to give you advice on what to do if you’ve been scammed, and connect you with identity recovery services,” Mr Jongen concluded. 

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The warning comes from the Australian Competition and Consumer Commission, who says that the developers of applications on the Apple and Google App Stores deserve reasonable terms that don’t exist in the absence of competition. 

The ACCC has published its Digital Platform Services Inquiry interim report, and found that the dominance of Apple and Google App Stores is hurting consumers and “measures are needed to address this.” 

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The ACCC’s Chair, Rod Sims has issued a statement saying that “Apple and Google’s stores are the gateways between consumers and app developers, and it’s true that they provide considerable benefits to both groups.” 

However, as Sims explained, “there are significant issues with how this market is operating.” 

Chief among the competition watchdog’s concerns is the fact that products from Apple and Google on the App Store compete against those of third parties, which can lead to incentivising their own products, hindering competition. 

“Apple and Google don’t only run the app marketplaces, they also compete within them with their own apps. They have the ability and incentive to promote their own apps over others, and they control the terms that their competitors must comply with to gain access to their stores.” 

The ACCC is calling on Apple and Google to publish a transparent set of rules for their App Stores, and called for the tech giants to be barred from using information collected to give them a competitive edge. 

“To address this market power, we believe app developers should have more information about how their apps are made discoverable to consumers and that consumers should have the ability to change or remove any pre-installed or default apps.”

“Apple and Google should also be prevented from using information collected about third-party apps to advantage their own competing apps,” the ACCC’s Chair, Rod Sims said. 

Dominance of Apple & Google App Stores Hurting Consumers, Says ACCC

The ACCC has come up with a number of recommendations in its latest report to ensure competition within Apple & Google app stores, including: 

• Consumers be able to rate and review all apps
• Consumers have the ability to change any pre-installed default app on their device
• App developers be allowed to provide consumers with information about alternative payment options 
• Information collected by Apple and Google in their capacity as app marketplace operators be ring-fenced from their other operations. 

“The ACCC is also concerned with restrictions imposed by Apple and Google which mean developers have no choice but to use Apple and Google’s own payment systems for any in-app purchases.” 

There have also been calls for the establishment of an independent panel to review disputes within the app stores of Google and Apple, to eliminate any potential bias in the conflict resolution system. 

“There is a clear need for better redress and dispute resolution for consumers who are harmed by these sorts of apps, or who have disputes over payments and other issues. This situation reinforces the need for an external dispute resolution body for digital platforms including Apple and Google.” 

Mr Sims said in relation to the recommendations the ACCC has put forward that “we have identified a number of areas where action is required… there is a window of opportunity for Apple and Google themselves to take steps to improve outcomes for app developers and consumers by adopting the potential measures we have identified.” 

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For the unaware, a shortage in the production of semiconductors used in computer microchips has caused havoc in supply chains around the world over the past few weeks. 

Everyone from the automotive industry, medical technology and consumer goods has been impacted over the past few months as manufacturers struggle to secure microchips for their products. 

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Now, we’ve had an update from the head of computing giant, Cisco, who says that the shortage is set to stay for at least six months as production rates struggle to keep up with increasing demand. 

Cisco’s chief executive, Chuck Robbins has told the BBC that “we think we’ve got another six months to get through the short term. The providers are building out more capacity. That’ll get better and better over the next 12 to 18 months,” he said. 

“Right now, it is a big problem because semiconductors go in virtually everything,” Robbins said, adding that in terms of who the suppliers are, “I think that it doesn’t necessarily matter where they’re made, as long as you have multiple sources.” 

Global Microchip Shortage Set to Stay for At least Six Months

The Cisco chief said that increasingly sophisticated technologies like 5G and demand for artificial intelligence are compounding the shortage of semiconductors, which are essential for electronics to operate. 

The problem was compounded by production slow downs, halts in international trade and a surging demand for electronics as a result of the COVID-19 pandemic. 

The problem is so severe that even U.S. President Joe Biden has stepped in and deemed it a “top priority” for the White House to increase production rates of microchips. 

According to the Semiconductor Industry Association, more than 75% of the world’s semiconductors come from East Asia, where Samsung and TSMC lead the manufacturing charge. 

Chief Executive at Intel, Pat Gelsinger has told the BBC that having three-quarters of the globe’s semiconductors manufactured in Asia was not “palatable,” and likely to result in shortfalls like we’re experiencing at the moment. 

Intel has announced plans for two new production facilities in Arizona to help with microchip manufacturing rates, at a cost of more than $20 billion. Taiwan’s TSMC has also announced plans to spend $100 billion expanding its manufacturing capacity over the next 36-months. 

Dan Ives, a technology analyst has told the BBC that microchip and semiconductor demand “is probably 25% higher than anyone would have expected. This is going to be an issue for the next three to six months,” he added. 

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The Chinese government has warned that H&M risks losing a huge amount in profits if it continues to boycott cotton sourced from forced labour camps in the Xinjiang region

The Xinjiang region is China’s largest single province, and more importantly in this context, is responsible for producing more than a fifth of the world’s entire cotton yield. 

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H&M is one of a number of brands that have publicly aired their objections to sourcing materials from the region, due to accusations that China deployed forced labour in camps that house minority Muslim Uyghur populations. 

Other brands implicated in the consumer boycott include Nike, Adidas, Converse and Burberry, Uniqlo and Lacoste. 

A spokesperson for the Chinese government, Xi Guixiang has said that “I don’t think a company should politicise its economic behaviour.”

“Can H&M continue to make money in the Chinese market? Not anymore,” Says Government as China threatens H&M over forced labour cotton boycott

Xi continued to threaten H&M, posing the question of “Can H&M continue to make money in the Chinese market? Not anymore.” 

Xi said the move made by brands like H&M to stop purchases of cotton from the Xinjiang region was “not reasonable” and compared it to “lifting a stone to drop it one one’s own feet.” 

There have also been reports that China has ordered its major e-commerce platforms like Alibaba and JD.com to boycott any products listed by H&M. 

China represents H&M’s fourth-largest market, accounting for around 5% of its overall revenue last year. Only Germany, the U.S. and the U.K. purchase more H&M goods than China, but don’t have the same growth-rate as the Chinese market. 

China’s Muslim minority group, the Uyghurs, believe that the Xinjiang region is their best cultural and ethnic fit, with the majority of Uyghurs living in the region. 

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In recent years, there has been a sizable population shift from China’s majority Han population, which has raised tensions in the region.  

More recently, these heightened tensions have resulted in violence, and a state-wide crackdown on Uyghurs using the vast resources of China’s surveillance technology. 

Uyghurs have been arrested and sent en-masse to detention camps, where there are allegations of human rights violations involving torture, sexual abuse and forced labour.

 Estimates say China has imprisoned more than 1 million Uyghurs in its detention camps in Xinjiang.  

China says these camps are re-education camps that provide Uyghurs with the opportunity to lift themselves out of poverty and join the wider community. 

A number of Western democracies like the US, UK, Canada and Europe have launched sanctions against those involved in human rights violations in the Xinjiang province. 

China has responded to these sanctions with similar measures, with the most recent threats against Swedish textiles giant H&M acting as another example of China’s threats toward any scrutiny of its alleged forced labour camps. 

A spokesperson for the U.S. State Department has said that “we commend and stand with companies that adhere to the U.S. laws and ensure products we’re consumer are not made with forced labour.” 

“We continue to support and encourage businesses to respect human rights in line with the UN guiding principles on business and human rights in the OECD guidelines for multinational enterprises.” 

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Computers, TVs, smartphones, home appliances and even cars require semiconductors to operate properly, but now, there’s an emerging shortfall in the number of semiconductors on the market that has been getting worse in recent months. 

Semiconductors are often referred to as the ‘brain’ of a microchip, and allow a complicated series of functions to take place inside the chip. 

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When the hysteria of the COVID-19 pandemic was reaching its climax in March and April of 2020, a temporary closure of semiconductor production facilities throughout the globe staggered distribution. 

Now that the initial and temporary shortfall in the number of semiconductors being produced has been overcome, analysts are warning that the surge in demand is reaching a crisis point for electronics manufacturers. 

According to a report from The Guardian, “car manufacturers investing in tech-heavy electric vehicles, the boom in sales of TVs and home computers and launch of new games consoles and 5G-enabled mobile phones have all driven demand.” 

That report cites the fact that Apple, the world’s largest purchaser of semiconductors had no choice but to delay the release of its iPhone 12 last year by two months, amid a global shortage of semiconductors. 

For reference, Apple reportedly spends more than $58 billion purchasing semiconductors each year. 

It also mentions the fact that “Ford recently cancelled shifts at two car plants and said profits could be hit by up to $2.5 billion this year due to chip stortages, while Nissan is idling output at its plants in Mexico and the US. General Motors has said it could face a $2 billion profit hit.” 

Microchip Prices Rising as Global Shortage Hits and Semiconductor Demand Explodes

The most revealing example of the global shortfall in semiconductors can, however, be found in the case of Samsung, Apple’s major consumer electronics competitor, and the second-largest purchaser of semiconductors. 

Interestingly, Samsung is also the world’s second largest producer of microchips for electronics. 

This week, Samsung announced that it may well be forced to delay the release of its latest smartphone, citing the difficulties of mass production amid a global shortage of semiconductors. 

Neil Campling, a technology and media analyst with Mirabaud has said that “chips are everything,” adding that “there is a perfect storm of supply and demand factors going on here. But basically, there is a new level of demand that can’t be kept up with, everyone is in crisis and it is getting worse,” Campling said. 

“It is incredible that Samsung sells $56 billion of semiconductors to others, and consumes $36 billion of them itself, find it may have to delay the launch of one of its own products,” Campling concluded. 

Automotive brands could potentially be reeling after many companies reduced the number of semiconductors being ordered during the pandemic, and are now at the back of the line when it comes to new orders. 

The Guardian is reporting that the automotive industry purchases around $37 billion worth of semiconductors each year, with Toyota and Volkswagen spending around $4 billion a piece on chips.  

“The worst affected have been autos because they were last to the party; if Apple is spending $56 billion a year and growing, who are you going to keep supplies going to first?” Campling questioned. 

“There is no sign of supply catching up, or demand decreasing, while prices are rising across the chain. This will cross over to people in the street. Expect cars to cost more, phones to cost more. This year’s iPhone is not going to be cheaper than last year,” he concluded. 

The problem is made worse by the fact that a semiconductor production facility can take more than 24 months until it is fully operational, and prices are expected to stay sky-high while production dwindles and demand continues to increase. 

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European health officials have raised concerns of a potential correlation between the AstraZeneca vaccine and blood clots.

To date, Germany, Italy, Spain, France and the Netherlands have temporarily stopped the rollout of the AstraZeneca vaccine.

Chief Medical Officer Paul Kelly said that the experts had looked at the rollout of the vaccine in the UK, where 11 million people had received the vaccine with no increased incidence in blood clots.

He also revealed there had been no increased incidence of blood clots in Australians who had already received the AstraZeneca vaccine here.

Frontline healthcare workers, and border and hotel quarantine staff in Australia have received the Pfizer COVID-19 vaccine, but the bulk of the population will get the AstraZeneca jab.

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Australia has scheduled 54m doses of the AstraZeneca vaccine. They are receiving regular shipments of the AstraZeneca vaccine but Australian biotechnology company CSL will be manufacturing up to a million doses a week here.

CSL commented on the unfolding decision stating, “we do not have the current capacity to manufacture mRNA vaccines but we have engaged with the government in relation to future possibilities.

While CSL remains open to discussions about the manufacture of alternative Covid-19 vaccines, our resources are fully committed to the manufacture of the AstraZeneca vaccine,” said CSL’s chief scientific officer, Dr Andrew Nash.

Professor Cunningham said “it’s a reasonable thing for these countries to take an excess of caution and communicate to the public the research findings before pursuing the rollout.”

The exact reason why the virus can cause clots remains a mystery.

WHO Says AstraZeneca Vaccine Safe for Distribution

The World Health Organisation says that there is “no evidence that the incidents are caused by the vaccine” and continues to caution against suspending the use of COVID-19 vaccines, 

Prime Minister, Scott Morrison said Australians will not pause the vaccination roll out, despite the blood clot concerns.

“Our Government will continue to act on the advice of our medical experts.”

Health Minister Greg Hunt said the AstraZeneca vaccine, which will form the bulk of Australia’s COVID-19 vaccine rollout with almost 54 million doses, would help save and protect lives.

“We support this program. We support the continued rollout. There have been views expressed, we disagree with them clearly, absolutely, unequivocally,” he said in question time.

He said “blood clots … happen in Australia fairly commonly”, with about 17,000 cases every year, and health officials expected to see clots for some people around the time of vaccination.

“I do not see that there is any specific link between AstraZeneca and blood clots. I am not alone in that opinion.”

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