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The Morning Risk Report: Technological Change Puts Focus on Change Management |
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PHOTO: istockphoto.com/PIKSEL
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Good morning. Organizations can face challenges when trying to get employees to embrace change, but good change management can help employees embrace new technologies and directions, and keep companies relevant, WSJ Risk & Compliance Journal's Ben DiPietro reports.
"There is always this collision course with where we think the future is going and what it is we are going to implement to get there," said Frank Sorrentino III, chief executive of ConnectOne Bancorp Inc. "Our clients are experiencing all this change around them. If we're not going to be part of that change, they are going to make decisions to go elsewhere."
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Looking to upgrade the bank's operating systems, Mr. Sorrentino decided the right choice was nCino, a software company that provides cloud-based operating systems and services to financial institutions.
But a group of bank employees convened to consider what platform to go with chose another vendor, which Mr. Sorrentino attributed to the behavioral trait of people looking for their comfort zone--in this case, a company the group had heard of and that had a track record.
The bank eventually settled on nCino because, after Mr. Sorrentino questioned the employees about how the choice would affect the client experience he said it became "incredibly apparent" nCino was the right choice.
Though it sells products and services, Sean Desmond, an executive vice president at North Carolina-based nCino, said the first thing the company tries to impress upon customers that it isn't showing up to deliver an IT project.
"We are very much a cultural-change business," said Mr. Desmond. "Technology is the easy part. If we can set the tone around change management, around attitude, around openness and acceptance to change...if we can get that cultural component part early, that can be the differentiator."
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| From Risk & Compliance Journal |
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The patriarch of a powerful Panamanian business family Friday lost his appeal to access evidence used to justify U.S. sanctions on him, members of his family and his companies.
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A jury has ordered Monsanto Co. to pay $289.2 million in a landmark lawsuit over whether exposure to two of its powerful weed killers caused cancer, WSJ reports. Shares of Bayer AG, which recently acquired Monsanto, plummeted Monday on the news to seven-year lows.
Qualcomm Inc. notched a victory in its effort to preserve its patent-licensing business, WSJ reports, as it reached a settlement with the Taiwanese government that revokes a previous finding against the chip maker and saves the company nearly $700 million in fines.
There’s a nagging question on Wall Street after Tesla Inc. Chief Executive Elon Musk’s buyout tweet last week: Why did Nasdaq let trading in Tesla shares continue for more than an hour afterward? The tweet has raised governance questions, and a large Saudi investor is weighing whether to partake.
The White House push to confront rivals over trade has spread beyond the world’s biggest economies such as China and Europe to include poorer countries that also see the U.S. as a critical market for their goods, WSJ reports.
An almost $9.5 billion bid by Hong Kong’s CK Infrastructure Holdings Ltd. for one of Australia’s main gas-pipeline operators has won over the company’s board, putting the deal’s fate in the hands of regulators, WSJ reports. CKI will need to satisfy Australia’s antitrust regulator that a takeover won’t harm competition or lead to higher domestic natural gas prices. The deal will also need to clear the country’s Foreign Investment Review Board.
Facebook Inc. announced changes intended to improve the reliability of the information found on the public profiles for businesses and communities, WSJ reports, including setting up publishing authorization for people who run any such pages that have a large audience in the U.S.
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A fast-growing digital currency that claims to be backed by U.S. dollars has become a cornerstone of the volatile cryptocurrency market. The problem: There isn’t hard evidence the cash supporting it exists, WSJ reports.
Kim Nilsson’s bitcoin odyssey, from an optimistic adherent to a hardened computer sleuth, encapsulates the messy maturing process of cryptocurrencies as their value and use have exploded in recent years, WSJ reports. His unearthing of an apparent multibillion-dollar theft and money laundering scheme at the very center of bitcoin’s world shows just how dangerous its largely unpoliced digital wilderness can be for investors.
Dozens of hedge funds investing billions of dollars in cryptocurrencies don’t know if they’re calculating their taxes correctly, which may be a problem now that U.S. authorities have said they’re going to be scrutinizing virtual currencies, Bloomberg reports.
Samer Foz has managed the rare feat in Syria’s wartime economy of getting rich without getting sanctioned, WSJ reports. As a result, he has become the Assad regime’s most important conduit for business deals.
Chubb Ltd. chief executive Evan Greenberg, who has more than four decades of experience in the property-casualty insurance industry, says the risk environment is becoming more complex, due both to nature and man-made activity: climate change combined with people’s growing preference for homes near coastlines, WSJ reports. He believes these risks are exacerbated by government policies that subsidize development and shield people from the true cost of their living choices.
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In a modern twist on an age-old practice from the yellow cab industry, many Uber drivers are employing a practice known as longhauling—taking an unnecessarily longer route to a destination in order to drive up a fare, WSJ reports. But unlike with taxis where passengers “get taken for a ride,” it’s ride-hailing companies like Uber Technologies Inc. that are responsible for covering the bigger bill. Longhauling is among the tactics used by some drivers of Uber and Lyft Inc. to maximize their take, reflecting the strained relationship between the contract workers and the companies over pay.
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Ride-hailing cars and a a cyclist make their way across 42nd Street on Aug. 1, as passengers load into a yellow cab outside Grand Central Terminal in New York. PHOTO: MARY ALTAFFER/ASSOCIATED PRESS
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Google has courted many allies in recent years as it tries to keep a foothold in China, a market from which the Alphabet Inc. unit retreated eight years ago in protest over government hacking and censorship, WSJ reports. While its core services like search, Gmail and YouTube remain blocked for most Chinese citizens, the company provides tools and support to a growing number of app developers, manufacturers and advertisers in the region, who rely on Google to reach global customers.
Private-equity firms have long been some of the biggest owners of companies. Now they are vying to become some of their biggest lenders, WSJ reports.
An Australian steelmaker is planning an up to $700 million investment in the U.S., WSJ reports in the latest example of companies expanding production or restarting idle mills to make up for imports being priced out of the market in the wake of President Donald Trump’s import tariffs.
Leaders don’t mean to waste their employees’ time. Unfortunately, many of them heap unnecessary work on the people below them in the pecking order—and are downright clueless that they’re doing it, WSJ reports.
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Hackers at the Defcon computer security conference believe they can help prevent manipulation of U.S. elections. Some election officials and makers of voting machines aren’t so sure, WSJ reports.
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Activist investor Elliott Management Corp. has taken a big stake in Nielsen Holdings PLC and plans to push the TV-ratings company to sell itself, WSJ reports. The New York hedge fund owns more than 8% of Nielsen, worth at least $640 million, people familiar with the matter said Sunday.
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Readers can subscribe to The Morning Risk Report here: http://on.wsj.com/MorningRiskReportSignup. Follow us on Twitter at @WSJRisk.
Follow the WSJ Risk & Compliance Team on Twitter: @WSJRisk, @srubenfeld, @BenDiPietro1 and @LikelyMara.
Send complaints, comments and kudos to Ben DiPietro at ben.dipietro@wsj.com.
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