News and views

New and noteworthy information you can use

Canadians left in the dark over identity theft

According to a survey released by Sigma Assistel, many Canadian adults don’t understand the serious repercussions identity theft can have on their lives. Thirty-seven per cent of respondents were not aware that a fraudster could purchase a household appliance on credit from a major retailer using the victim’s name. Just under half of all Canadian adults (45 per cent) didn’t know that if their identity is stolen, an institution or retail store could decline their future purchases on credit.

“These survey results are proof that Canadians need proactive and reactive help with respect to identity theft,” Pierre Julien, director of business development and marketing, Sigma Assistel, says. “Restoring your identity is no easy task. You’ll likely need to contact a number of organizations including banks, credit card issuers, government services, credit reporting agencies, the police, etc. And if you don’t go about these steps properly or if you neglect to inform certain organizations, you and your family will be in for a long haul in the months and years ahead. And that could mean a lot of stress for everyone involved.”

Prevention is still the best strategy to combat fraud. The survey also showed that Canadian adults have taken commendable steps in the right direction. More than eight out of 10 Canadian adults (83 per cent) always, or most of the time, check to make sure all transactions listed on each one of their credit card statements are accurate and just over one out of five Canadian adults (21 per cent) keep valid credit cards that are no longer used.

International business on the rise for Canadian companies

Companies are no longer experiencing barriers to world markets. In a survey of senior executives from across Canada, 51 per cent say their companies are doing more international business today than five years ago. The poll includes interviews with 100 senior Canadian executives — including those from human resources, finance and marketing departments.

“As companies experience an increase in international business, an exceptionally prepared workforce is necessary to compete on a global basis,” Paul McDonald, executive director of Robert Half Management Resources, says. “Firms today need a common understanding of cultures, languages and ethical standards to better serve customers across different countries and time zones.” McDonald also noted that financial regulations and reporting standards may have an impact on recruiting efforts. “Accounting and finance departments within firms that operate globally will require professionals skilled in both generally accepted accounting principles and international reporting standards (IFRS).

IT a crucial piece of the risk management pie

Financial services firms that don’t align information technology risk management with overall risk planning could pay a hefty price. Nearly 60 per cent of respondents to a new Ernst & Young survey, Managing Information Technology Risk, say their IT risk management (ITRM) programs aren’t necessarily lined up with their overall risk management plan. Still, 80 per cent of respondents anticipate they will increase ITRM spending in the next 12 to 18 months. Ernst & Young applauds those investments, but encourages firms to work on their overall risk management program first.

“You should align all your risk management plans before investing further in any one area,” explains Keith Matcham, partner, Ernst & Young. “By integrating your plans, you reduce redundancies, eliminate duplication, drive down costs and make strategic decisions.” There’s no substitute for a well-defined, company-wide risk management program, Matcham adds. Once that’s established, firms can create effective ITRM processes that actually reduce costs and provide benefits over the long-term.

An effective ITRM framework ensures accuracy, confidentiality, availability and security. A solid framework also considers the speed of information developed and shared internally and externally. Cutting corners could result in significant hits to a firm’s reputation and bottom line. Managing Information Technology Risk surveyed 150 risk management and IT senior executives at global financial institutions that all have assets in excess of US$10 billion.

Other key survey findings: 40.8 per cent of respondents indicate they do not have effective coordination of risk and compliance activities; more than 40 per cent do not feel their organization was effective in risk reporting and disclosure, risk and issues management, and trend analysis; more than 33 per cent say their risk management programs have no common control library and that there is no common risk language across the organization (or they are unsure if one exists).

Manitoba expected to lead in economic growth in 2008

For the second consecutive year, Manitoba’s economy is forecast to expand by 3.7 per cent for the second consecutive year, making it the fastest-growing provincial economy in Canada in 2008, according to the Conference Board’s Provincial Outlook — Winter 2008.

In spite of the slowing U.S. economy and the high Canadian dollar, the manufacturing sector in Manitoba is being fuelled by large, lucrative orders for buses and aircraft parts. Manufacturing in the province is expected to grow by an average of 5.5 per cent over the next two years — two percentage points higher than the national average.

“Boosted by ongoing construction projects, robust domestic spending and an optimistic outlook for manufacturing, the Manitoba economy is firing on all cylinders. Its neighbour, Saskatchewan, is also poised for another year of strong growth,” Marie-Christine Bernard, associate director, Provincial Outlook, says. “In Central Canada, the sombre U.S. outlook will present a challenge for both Ontario and Quebec, but neither province is expected to slide into a recession.”

The report also states that Saskatchewan’s economy is also booming, with growth of 3.6 per cent expected in 2008 — slightly below the province’s 2007 pace. High commodity prices are driving mining activity and boosting construction projects. In addition, new migrants are bolstering Saskatchewan’s domestic economy.

After a five-year low in drilling activity, coupled with weaker gains in retail sales and lower population growth, Alberta’s economy is cooling down. The service sector, however, is expected to grow strongly, boosting overall economic growth to 3.3 per cent in 2008. Weakness in the United States is cause for concern for British Columbia’s forestry and manufacturing sectors, but the province’s domestic economy remains strong enough to produce real GDP growth of 3.1 per cent this year.

The weakening trade balance will continue to erode bottom-line growth in Ontario and Quebec, and more manufacturing layoffs are expected. Still, healthy capital spending and decent income growth will support Ontario’s economy, producing growth of 2.1 per cent in 2008. The domestic economy in Quebec is even more of a pillar of growth, thanks to federal and provincial tax cuts that will boost consumption. As a result, Quebec’s real GDP is forecast to grow by 2.4 per cent. Both provinces can expect better performances in 2009.

In Nova Scotia, new private investment in capital projects and stronger manufacturing prospects should add to a vigorous service sector, producing growth of 2.6 per cent this year. New Brunswick will benefit from strong mining and construction activity — offsetting difficulties in the forestry sector — to produce growth of 2.2 per cent in 2008. Following a hiring boom in 2007, Prince Edward Island’s economy will increase by a modest 1.9 per cent this year, although tax reductions over the past 10 months will support income growth.

After growing by 7.3 per cent last year, Newfoundland and Labrador will post growth of just 1.5 per cent in 2008, due to a decline in oil production.

New Software

• Singletouch Mobile solution
• Partition Manager 9

Snapshot

Finding a healthy balance

Haley Green, CMA

After the birth of her first child in 2005, Haley Green, CMA, had mixed feelings about re-entering the workforce. Feeling strongly about wanting to be at home with her son, she began to seek work opportunities that would balance raising her son and working outside of regular business hours or on weekends. At that time, Green’s yoga instructor, Jenny Rowett, shared her goal of becoming a corporate plan provider. With her background in kinesiology and personal training, Rowett had the knowledge and ability to achieve her goal of expanding her business, but was looking for a way to make contacts and translate her services into something that corporations would find valuable. Rowett met with Green after yoga and for coffee appointments to work on corporate presentations and proposal writing. Together they built the foundation for Heal Thy Self’s corporate wellness services — educational and motivational workshops for corporate groups and employees, to help achieve work-life balance and adapt a healthier lifestyle through fitness and nutrition. “Companies are beginning to understand that healthy employees are not only more motivated, but more efficient and effective in their roles,” Green says. She adds that a corporate wellness program is a powerful tool for the recruitment and retention of employees because it ensures that employees are healthy and empowered. Green is currently helping Rowett secure year-long contracts with local companies in Woodstock, Florenceville and  Hartland, New Brunswick.

“I’m quite involved in the business,” Green says. “I set up meetings and make company presentations with Jenny. There are only two of us right now, but she’s brought the business to where it is. As a CMA, I’m helping her in an area that needs the most attention right now — getting the companies on board.”

As an avid runner who is currently training for the Ottawa half marathon, Green says that having her own interest in health and wellness, coupled with her CMA designation, are allowing her to apply her skills to a very different, yet challenging, business application.

“Work-life balance is something I really believe in, so for me, it’s not really hard to make the sale when I go to a company and say ‘I really think that you can benefit from this program, because I’m doing the same thing at home.’ “It’s not hard to show enthusiasm and sell the benefits.” She adds that working for accounting firms in the past, and her training in strategic management, have been instrumental to the success of her new career. “I’m married to a CA so I know the difference between the designations,” she says. “I really like that our designation focuses on strategy. I have the skill set to help Jenny grow Heal Thy Self. The CMA program provides candidates with the tools to analyze business situations and how to think through problems to resolve business challenges.”

Top