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No Regrets! Accepting the Past to Survive in the Future

By David De Cremer

Before COVID-19 became a reality, the business world in China was still very occupied with understanding how global success could be achieved for Chinese companies (De Cremer, 2017). In light of that question, I was asked by several universities to talk about the management structure and leadership style of one of their biggest business champions, which is Huawei. Huawei was founded in 1987 in Shenzhen by Ren Zhengfei and has in the meantime transformed itself into one of the giants in the world of telecommunication technology, infrastructure and smart devices. They have become a global player by employing more than 194 000 employees across more than 170 countries and regions. In the fiscal year of 2019 Huawei’s revenue reached CNY858.833 billion (US$122.972 billion) and CNY62.656 billion (US$8.971 billion) in net profit (in 2018 revenue reached CNY721.202 billion and CNY59.435 billion in net profit). They currently rank number 61 in the Forbes 500 list.

When I finished my talk students could ask questions and especially one specific question has stayed with me. This student asked me whether I thought that Ren Zhengfei would have any regrets today concerning his company. In itself an intriguing question, but also not that surprising given the fact that at the time of the talk the conflict between the US and China, which is basically one of technology, was more or less escalating. Indeed, the trade war between the US and China clearly expressed the fear that the party possessing the most advanced technology will eventually gain all the benefits, ranging from market share and economic prosperity to political influence and global leadership. As a result, the US started to impose sanctions on high-profile Chinese companies and the biggest one of all was Huawei (De Cremer, 2019).

Clearly this trade war situation elicits many negative emotions and one emotion that is usually felt if negative things happen to you is regret. Regret is a negative cognitive or emotional state that is caused by blaming oneself for a bad outcome. When one feels regret one reflects on what could have been or how a given situation could have been different. So, the question of the student was clearly about whether Ren Zhengfei, knowing the situation in which his company ended up, would regret the decisions and actions taken in the past. After carefully considering my response for a few seconds, I said – in line with Edith Piaf’s song “Non, je ne regrette rien” (I have no regrets) that I did not think he had any feelings of regret. Of course, the follow-up question was asking why I thought so. In response I noted that Ren Zhengfei considers any event in its own historical context (De Cremer, 2018). He loves historical references so much that he once argued that it is history that has determined the existence of Huawei. Specifically, if China didn’t open up, Huawei would not exist; if private companies would not be allowed, Huawei would not exist and so on. So, I explained that based on his tendency to account for the historical perspective, he likely is a person who accepts history as it is. In other words, his response to the student’s question would likely be that ‘The company that Huawei is today is probably the company they were supposed to be.’ Such reasoning has no room for regret.

In order to understand why I believe that this response would also likely be Ren’s response we need to go back to see what the DNA of the company is and especially how the founder has shaped the way the company looks at the world. To do so, below I identify four principles that drive the perspective and hence leadership of Huawei’s founder.

1. Do not try controlling what has happened, but accept

Ren Zhengfei is known for using vivid images and practicing the art of storytelling whenever he introduces new ideas or talks about Huawei’s journey and ambitions (De Cremer & Tao, 2015). In this process he uses many historical facts to illustrate his vision and shape the future actions of the company. In this sense he does not challenge the past but uses it as it is to make a point for the future waiting for them. Indeed, every past example has a meaning for the future! And, in that sense, Ren Zhengfei realizes that he and all other executives in the company have no real influence on how time and history influences everyone’s journey. To illustrate this belief, he once noted that one’s life journey is “like riding on a flying carpet. It is not us who are flying, it is the carpet carrying us upwards.”

All of this makes clear that for Ren Zhengfei, things happen for a reason and thus should not negatively influence you (read: make you regret things) in the present. A clear example is how in 2003, Huawei was about to sell itself to Motorola for $7.5bn’ a deal that would have significantly impacted history of telecommunication. After a few weeks of negotiation, a deal had been agreed, but eventually it never materialized. Outsiders today are still wondering what would have happened if Huawei would have become part of Motorola. Would Huawei have saved Motorola (the latter company was eventually eclipsed by other companies)? No one knows, and according to Ren Zhengfei, the only thing that matters is that Huawei has become one of the most important, and currently most controversial, telecoms supplier in the world. So, the past makes what company you are today, and we can learn from it, but do not dwell on it. The focus is always the future, and this brings me to the following principle.

2. Stay focused on the things you can control

Leading a company requires that you can connect the past with the future by doing the right thing in the present. Dwelling too much on the past and not realizing its potential to engage in meaningful future action is a waste of time. As a matter of fact, according to Ren Zhengfei, no value can be created if one sticks to nostalgic feelings and gets caught up in it. As point 1 above illustrates, his belief is that history decides and not you. Therefore, stay humble and realize that there are many things you cannot control. Being aware of this fact of life should motivate you to focus on the things that you can control. Ren Zhengfei is especially a big fan of being focused on what matters to make a difference for the company in the future (De Cremer & Zhang, 2016).

A focus on well-defined priorities is one of the secrets that Ren Zhengfei believes will contribute to the ability of a company to overcome negative events and hence survive on the longer term without being consumed too much by negative emotions. In 2015, Ren Zhengfei noted the following in support of this belief: “It’s been a rough 28 years. Huawei has remained focused on our strategic business of ICT infrastructure development. Over the past 28 years, over 100,000 people have fixed our sights on a single opening in the gates, charging it over and over again. Huawei’s investment strategy is just that: Fast beats slow. Focusing on one point is actually a fast-beats-slow strategy. That’s why it generates results.” Thus, by knowing what it is you want to achieve allows you to transcend the difficult times and the accompanying negative emotions. One reason why this strategy may work is that it keeps your feet on the ground and installs a kind of recognition that nothing is a given and that hard work will always be needed. Warren Buffett indeed once noted that staying humble helped him to stay focused on what really matters, in a similar vein this kind of humbleness can be found in Huawei that hard work combined with a strong focus is needed to survive.

3. Work hard to achieve your priorities

Knowing your priorities allows you to stay focused even when things do not go according to plan. When companies have experience a crisis, a risk is that negative emotions stay and low energy fuels the organization. Being aware of and endorsing the right priorities provides a kind of guidance that can avoid wasting too much energy and getting caught in sentiments of regret, disappointment and an overall sense of helplessness. Of course, staying focused requires a certain attitude among your work force. That is, it requires that they are willing to go the extra mile to survive, work hard, and persist even when things don’t go their way. Ren Zhengfei has expressed on multiple occasions that Huawei is willing to suffer and work its way through any crisis. Huawei employees believe and are convinced that more effort, dedication and passion will eventually help the company to achieve their goals. As one Huawei executive said when talking about Ren Zhengfei’s way of making decisions; even if we only have 30% confidence in the decision then we will still take the risks, because we believe that the other 70% will come from our willingness to sacrifice and show dedication at every level of the company.

4. Surviving means sacrificing

Why would such a fierce leader as Ren Zhengfei allow himself to accept situations and maintain a focus on the future rather than being victim to negative sentiments? The most plausible reason may well be the fact that the focus of Huawei’s founder is by default directed towards the future – as he is concerned mostly about his company surviving as long as possible. Consider the following anecdote: On one occasion, someone asked him what Huawei’s most basic goal was. He replied: “Survival.” The person then asked what Huawei’s ultimate goal was. Ren Zhengfei replied that it was also survival. And, it’s not only Ren Zhengfei who has this belief. It is a belief that has taken over the company. For example, in the foreword of Huawei’s 2019 report rotating Chairman Eric Xu noted at one point that “survival will be Huawei’s first priority.” As it usually goes within Huawei, the way to survive is to “optimise” their own functioning and install – once again – an attitude “to fight inertia and rid themselves of complacency.”

This focus clearly underscores the importance that Huawei assigns to being willing to keep fighting when things are rough because they want to keep improving to stay around. Obviously, such a request implies that it is expected that Huawei employees are willing to suffer and sacrifice their interests when being asked. Such a culture clearly does not work if feelings like regret and disappointment would linger too long. The most compelling example of Ren Zhengfei’s belief that working hard for the future demands sacrifice concerns what he said when his daughter Meng Wanzhou, the Chief Financial officer of Huawei, was arrested in Montreal in the face of the US-China trade war. Ren Zhengfei expressed his gratitude to his daughter for her year of “suffering” and at the same time added that he believed that this experience will make her stronger. This response makes clear that the willingness to suffer is recognized and applauded but at the same time also considered behavior that one would expect from any Huawei employee.

To conclude, the love for his company, the desire to survive, the sacrifice expected from every Huawei employee and the acceptance that history cannot be controlled, allows us to infer that it will indeed be likely that at this moment the founder of Huawei is not the person to allow the company to be consumed by feelings of regret. Rather, all the beliefs he has installed in the Huawei culture clearly signal that since the foundation of the company he has worked on creating a sense of community where Huawei employees can draw their strengths from.

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About the Author

David De Cremer is Provost ‘s chair and professor in management and organizations at NUS Business School, National University of Singapore. He is the founder and director of the Center on AI Technology for Humankind at NUS Business school; which is a platform developing research and education promoting a human-centered approach to AI development. Before moving to NUS, he was the KPMG endowed chaired professor in management studies at Judge Business School, University of Cambridge. He is named one of the World’s top 30 management gurus and speakers in 2020 by the organization GlobalGurus and has published over more than 300 articles and book chapters. He is also a best-selling author with his book Huawei: Leadership, culture and connectivity” having sold more than one million copies. His newest book “Leadership by algorithm: Who leads and who follows in the AI era?” came out in print in May 2020.

 

References

  • De Cremer, D. (2017). What it takes for Chinese companies to succeed abroad. The World Financial Review, November-December, 65-68.
  • De Cremer, D. (2018). Know your history! Why historical awareness makes you a better leader. The Political Anthropologist.
  • De Cremer, D. (2019). Hard-Wired to survive in the UC-China trade war. The European Financial Review, August-September, 7-11.
  • De Cremer, D. & Zhang, J. (2016). Why Focus-based Leadership is important to Huawei’s Business Strategy. The European Business Review, May/June, 40-43.
  • De Cremer, D., & Tao, T. (2015). Leading Huawei: Seven leadership lessons of Ren Zhengfei. The European Business Review, September/October, 30-35.

RPEC: Why world’s largest free-trade pact matters

By Dr. Dan Steinbock

The Regional Comprehensive Economic Partnership (RCEP) is an extraordinary achievement amid aggressive geopolitics, self-defeating trade wars, and accelerating global pandemic. It is also a leap toward a better future.

Last June, the ministers of RCEP countries underscored their determination to sign the free-trade agreement amid unprecedented headwinds in global trade, investment and supply chains. Following almost a decade of talks, 15 countries are poised to sign the world’s largest free-trade pact during the ASEAN Summit.

The RCEP is expected to increase trade integration between the 10 ASEAN countries, East Asian leaders (China, Japan, South Korea), and Oceania (Australia, New Zealand).

Surprisingly, India withdrew from the RCEP talks late last year, following Prime Minister Modi’s increasing cooperation with the US-led Indo-Pacific initiative. Nonetheless, India can still rejoin the talks at a later date, if it chooses to do so.

But even without India, the combined economic muscle of the RCEP participants is almost a third of the world gross domestic product (GDP). As a consequence, it will have significant global repercussions.

Why “shallow integration” works in tumultuous times

In the past four years, all multilateral trade deals have been overshadowed by “America First” unilateralism. In contrast, the RCEP will intensify multilateral trade integration in Asia, the world’s most dynamic region.

Until recently, the RCEP critics, particularly in Washington and Brussels, have argued that the pact represents “shallow” integration since its requirements are not as stringent as, say, the bygone Trans-Pacific Partnership (TPP), promoted by the Obama administration. And yet, it was precisely those stringent preconditions that made TPP the target of a host of anti-globalist groups, including President Trump who buried it upon his arrival to the White House.

Ultimately, the TPP prioritized the integration needs of international capital over those of national governments. That’s perhaps why it was negotiated in controversial secrecy and included murky clauses predicated on geopolitics rather than trade. Typically, the remaining 11 TPP countries agreed on a revised “Comprehensive and Progressive Agreement for Trans-Pacific Partnership” (CPTPP) that’s largely the same as before, but omits 20 provisions that US had included in the original TPP.

Second, “shallow” integration is better aligned with the integration needs in emerging Asia, where governments play critical role in economic development, the idea of national sovereignty is vital, and legacies of Western colonialism remain prominent.

Third, the RCEP may be more aligned with the new international landscape that’s overshadowed by protectionism and tariff wars. Since the Great Recession of 2007-09, country blocs that aspire deep integration and homogeneity, particularly the Eurozone, have had to take steps back, whereas country blocs that were built on shallow integration and heterogeneity, including ASEAN, have retained greater strategic maneuverability amidst international headwinds.

What ASEAN and high-income countries hope to gain

From the standpoint of ASEAN, the RCEP is vital to develop progressive regional integration, particularly if advanced economies will opt for greater protectionism and new trade wars in the future. It can also serve as a platform toward greater global economic integration.

From the perspective of its high-income participants – Japan, Australia and New Zealand – the RCEP is vital to participate in regional growth. In one way or another, each is haunted by secular stagnation that is spreading in aging and increasingly polarized advanced economies.

The pact cannot offset such secular trends, but it can counterbalance against them. Among other things, RCEP is expected to remove tariffs on 86% of Japan’s exports to China, thus benefiting Japanese exporters, such as auto parts suppliers.

Indeed, the RCEP could eliminate 90% of the tariffs on imports between its signatories within 20 years of coming into effect, which could be by early as next year. It will also seek to establish common rules for e-commerce, trade and intellectual property.

China’s support global and regional integration

In contrast to all other major nations, China’s economy has been rebounding since late spring. Despite the Trump trade wars, Chinese export growth improved once again in September to almost 10 percent on a year-to-year basis. The rebound of import growth at over 13 percent after two consecutive months of contraction suggests rising confidence– as do the record sales of the recent Singles Day.

Despite US-Sino trade wars and rising protectionism, China is supporting both global and regional integration. In part, this is a natural consequence of its rapid economic development. Just as Japan’s rise in the postwar era resulted in its cross-border investments in the region, China’s emergence is having a similar but broader impact.

The RCEP is important to China but not the only major regional venue to its huge economy. As global prospects of international trade have dimmed, China has been pushing for regional differentiation at home (the Guangdong-Hong Kong-Macao Greater Bay Area), and internationally (Belt and Road Initiative, BRI).

Nonetheless, China’s bilateral trade with ASEAN has increased steadily in the past decade or two. Between January and May, it accounted for almost 15% of China’s total trade volume, which exceeds its trade with US (11%) and EU (14%), respectively.

A sense of shared future for Asian Century

Due to its significant international trade muscle, the RCEP will also have global impact. Together, these economies represent 2.2 billion people (30% of world total) and a combined GDP of $26 trillion (almost 30% of total).

Most importantly, it heralds greater optimism after four years of global urgency. “The signing of RCEP,” said China’s premier Li Keqiang, “will send a clear, strong, positive signal for advancing regional integration and economic globalization.”

For all practical purposes, half of RCEP’s global muscle can be attributed to China, whereas another half comprises ASEAN and the high-income economies of Japan, Australia and New Zealand. If the pact participants will continue to thrive, the economic role of China and ASEAN will increase relatively faster over time.

Assuming peaceful and relatively stable conditions, the size of the Chinese economy will surpass that of the US by the late 2020s, while the economic muscle of ASEAN would rise in parallel.

Despite geopolitics in Asia (which the outgoing Trump administration could still rattle in the next few weeks), both China and ASEAN share a long-term quest for multilateralism, regional and global cooperation. It is this strong sense of a shared future that could make the long-anticipated Asian Century.

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About the Author

Dr. Dan Steinbock is an internationally recognized strategist of the multipolar world and the founder of Difference Group. He has served at the India, China and America Institute (USA), Shanghai Institutes for International Studies (China) and the EU Center (Singapore). For more, see https://www.differencegroup.net

Newbies and Pros Love These Roulette Games

Whether you are new to online Roulette or a seasoned veteran, there are a whole host of games out there for you to enjoy. We have taken the time and done the research to find games that excite both newbies and pros, and of course offer massive pay-outs to players. These games include the classic rules of Vegas Roulette, but make their mark by offering something a little different to entice players to select them.

Read on to find out which games we have chosen that can be enjoyed by players of all levels, offering a challenge and at the same time, big wins.

Quantum Roulette

This is a modern variation of the classic game. Set in space as you travel through galaxies, you can start gameplay with as little as 0.20 coins up to 500 coins and have the chance to win up to 500x your initial stake on a single bet! A straight-up win pay-out is 29:1, which may seem low in comparison to the traditional game (where the pay-out is 35:1), but there are bonus features included that more than compensate for that.

During the game, electricity will surge through random numbers before the betting round closes. Up to five numbers are selected at random and will be lit up. The numbers that are struck by lightning will increase their pay-out rewarding you between 50x and 500x your initial stake! Extra bonuses can pop up at any time meaning there are plenty of ways to win, and be rewarded massive pay-outs from this game, which has a 97.30% RTP.

Spread-Bet Roulette

This game is a modern twist on classic Roulette. You can start betting from as little as 0.50 coins up to a maximum of 200 coins. What makes Spread-Bet Roulette unique is its golden wheel feature. Set inside the main wheel, the golden numbers spin independently and are activated by placing spread-bets on the wheel.

The spread-bet feature can reward you up to 400x your initial stake if you select the correct numbers. These winnings will be added to the main wheel winnings if you have already successfully chosen the correct numbers there meaning there is the potential for a massive pay-out. With multiple ways to win, this game is a favourite amongst players of all levels. The game has a 97.30% RTP.

20p Roulette

This interactive and sleek variation on the classic is universally-loved. The rules are simple and it does not include loads of bonus features to confuse you with. You can start playing with as little as one credit, increasing up to a maximum of 10,000 credits. There are a number of different bets to choose from, these range from selecting the exact number you think will come up, to choosing to wager over a range of numbers to try and increase your chances of winning.

If you pick the correct number it is possible to be rewarded as much as 100,000 credits in winnings. The game keeps the rules basic, but the interaction, emotion and tension are all incredible. Making this game perfect for starters to learn the fundamentals, and for pros who want a break from the seemingly endless bonus features and want clean visuals and great fun. The game has a 97.30% RTP.

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How to get your first 1000 Instagram followers

This article deals with how to get free Instagram followers and likes with an app while not having cash. Every person, from the traditional person to the stars, affects the hunting of all area unit Instagram as an important supply of communication with individuals and supporters everywhere on the planet. Thus if you want to be an influencer on Instagram which can be a very big platform, the primary issue you should do is to expand followers. If your posts don’t get enough likes and you’re not really a huge follower, then you’re essentially a daily Instagram user. There is no way to achieve goals on Instagram, although it is clear that you are extra involved on Instagram, the additional likes and followers you can wear to your post.

The best thing is that the GetInsta app is free. GetInsta is a great tool to urge free Instagram likes and followers. GetInsta can be a free sociable based app to expand genuine Instagram followers and likes.

Why to choose GetInsta?

GetInsta offers you Instagram followers, thus you should not spend a penny to get followers. You don’t have to produce daily new plans on how to improve your followers and likes because the GetInsta app ensures for you that you will be taking 1000 free Instagram followers trial. Companies, individuals and trades will use this incredible application to urge others of their level dead set. With this tool, you will be able to make your post viral instantly. If you are trying to withdraw some cash from your profile then the app is for you as it can support you to follow and like Instagram.

6 Important Options for GetInsta

1. Easy to use

This application is simple to use and comes with an intuitive program. No special skills are required to use this app and all you need to do is enter your Instagram details and start falling prey to this app.

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The Security and Privacy Zone unit essential option of any app we use. GetInsta has been developed by a specialized and trained team, thus it can be a completely safe and secure app. There are no viruses in GetInsta. GetInsta provides complete privacy to your data without any leakage knowledge and risk. It provides importance and maintains your privacy. You’ll be able to get systematic improvements of choice with real Instagram followers and the GetInsta security system.

3. Get free Instagram followers at no risk

When gaining additional followers, the choice will also increase at the same time. All Instagram followers and likes are about to be sent to you during an intelligent time, in an organic and natural way. Therefore, you are not taking any risk of being illegal or blocked for good.

4. Supports multiple languages

The GetInsta tool will support quite sixteen languages and you will be able to select the language you want to choose easily. You will be able to modify your profile to be included by checking the profile section and through the Settings tab.

5. Complete free tools

You should not use cash to feel Instagram followers and likes. GetInsta is a completely free tool. However you want to earn the coin. When you enter GetInsta, you may receive a bottomless coin and you will be able to shop for Instagram likes and followers. You will be able to create coins by working directly on the GetInsta app.

6. Real and organic

Users provided by the GetInsta area entity are absolutely real Instagram users, not to scam Instagram users created by one thing. Likes and followers by active and real Instagram accounts can get you the area unit.

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Cedar Rose Receives Prestigious Cyprus Export Award

Business intelligence agency, Cedar Rose, has won the Cyprus Special Export Award for 2018

Nicosia, Cyprus – Business intelligence provider Cedar Rose has been presented with the Cyprus Special Export Award for Services from the President of the Republic of Cyprus, Mr. Nicos Anastasiades. The award was accepted by the CEO of Cedar Rose, Antoun Massaad, at the Presidential Palace in the Cypriot capital of Nicosia on November 12, 2020.

The award ceremony was conducted at a special event held for a small group of attendees with strict protocols put in place by the Ministry of Health to ensure the safety of all guests. With the economic effects of the coronavirus pandemic still weighing heavily on Cyprus and its citizens, the President delivered a positive message of hope for the coming year.

“I am absolutely sure, based on the measures taken at local, international, but also European level, that we are close to the discovery of an effective vaccine, that the pandemic crisis will be overcome so as to deal more effectively with the financial crisis in the hope that 2021 will be the year for the recovery to begin,” he said.

Exports of domestic products on the island fell by 4.6% in the first half of 2020, with exports of services falling by 8.8%. However, President Anastasiades believes these losses can easily be reversed in the coming year once the pandemic has come under control. To support the economy, Cyprus has secured an allocation of €2.75 billion for the preparation of a new Multiannual Financial Framework to help cover €1 billion of spending in 2020 and an amount likely to be far greater than €300 million planned for 2021.

Cyprus Export Services Award

Established in 1982, the Cyprus Export Services Award was created to recognise the efforts of businesses that have shown remarkable talent and initiative in improving the economic situation of Cyprus. By driving foreign investment, promoting new market opportunities, and increasing international awareness, many Cypriot businesses have won the award over the years.

Cedar Rose was amongst five companies awarded the Export Services Awards. The honours were bestowed in recognition of services rendered during the 2018 fiscal year, with the other winners including Christakis Agathangelou Ltd, Remedica Ltd, Armonia Estates Ltd and Thomason Machinery Ltd.

Cedar Rose

Cedar Rose International Services Ltd is recognised for its proficiency in delivering expert Business Intelligence advice, company credit reports, and due diligence research to the EU market throughout 2018. Established in the UK in 1997, the company relocated its headquarters to the beautiful island of Cyprus in 2007. The name “Cedar Rose” comes from the national emblems of Lebanon and England, the countries where founders Antoun Massaad and Christina Massaad were born.

Besides credit reports and due diligence investigations, the company also offers electronic identity verification and customer onboarding software to clients all around the world. Their services enable their customers to trade securely, to export and extend credit with confidence and to onboard customers without enabling fraud, money laundering or the financing of terrorism.

Cedar Rose’s customers include Tier 1 banks, Big 4 Auditors, export insurance agencies, governments and private companies. The company has been a National Winner for Cyprus twice in the European Business Awards and recently won the Commercial Credit Information Provider of the Year and the CCR Credit Excellence Award for Export in the UK.

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Update on European MiFID Template (EMT) 3.0

By Aleksandar Kozacenko

Why is there a new EMT template and who will be affected with this update?

European MiFID Template (EMT) is a MiFID information exchange template jointly designed by product manufacturers (i.e. asset managers) and distributors as part of FinDatEx’s MiFID working group. Since January 2018, EMT has been successfully used to standardize the flow of information on target market, distribution strategy and costs & charges between product manufacturers and distributors.

The European Fund and Asset Management Association (EFAMA) continued gathering feedback from the industry, intending to remove any ambiguities present in the original EMT 1.0 template (which is still being used). Based on the feedback collected, new EMT 3.0 was created and officially endorsed in December 2019 by FinDatEx and members of the FinDatEx Steering Group.

Members of FinDatEx Steering Group include: European Fund and Asset Management Association (EFAMA), the European Banking Federation (EBF), Insurance Europe, the European Savings and Retail Banking Group (ESBG), the European Association of Cooperative Banks (EACB), the European Structured Investment Products Association (EUSIPA) and the European Association of Public Banks (EAPB).

Based on the EMT 3.0 update especially to the fields relating to the target market and distribution strategy product manufacturer will need to carefully consider their product categorization. On the other side, distributors are now expected to report sales outside the positive target market or within the negative target market. Any such instances should be justified by the individual facts and the reasons for the deviation should be documented.

Is there a transition period between the two EMT templates?

Transition period will finish on 10 December 2020 after which product manufacturers can provide their distributors with only EMT 3.0 template.

ACOLIN’s survey of distribution partners shows that distributors are in the process of analyzing the implementation of EMT 3.0 and, at least at the moment, have no intention yet to request the delivery of the new template until the end of the transition period. To meet different distributors’ requirements, ACOLIN recommends starting to disseminate both EMT 1.0 and EMT 3.0 throughout the entire transition phase, until all selected distributors have switched to the new version.

Significant number of distributors use Openfunds standard (www. openfunds.org) for data validation and delivery of static and regulatory data. Openfunds is currently in the process of aligning itself, as close as possible, to existing ESMA standard. The new Openfunds data catalogue v1.26, which is about to be launched, will contain all EMT 3.0 fields and incorporate any existing field changes.

For product distribution in Germany, MiFID data needs to be mapped, delivered and successfully imported into WM Daten database in either of the two templates:

  • WM Daten EMT template
  • 3 German templates (ZMF, KTF and JV)

What are the differences between EMT 1.0 and EMT 3.0 templates?

There are several differences between the EMT 1.0 and EMT 3.0 templates. These differences will need to be reviewed and understood, as they can have a significant impact on the quantity and quality of MiFID data being disseminated to your selected audience i.e:

  • Number of the fields has been increased from 66 in EMT 1.0 to 94 fields in EMT 3.0
  • More than 30 new fields have been added throughout the template (EMT Data Set Information section fields, fields added to further explain the product and identify the manufacture)
  • Certain fields have been discontinued, had their names or field type changed, or both
  • EMT 3.0 allows for individual section updates as each section now contains a record date: Target Market Data, Ex Post Costs and Ex Ante Costs
  • All ongoing ex-ante and ex-post costs must be reported in annualized terms regardless of the existence, even if the reporting period is shorter
  • Use of value “99.99” has now been discontinued
  • New ESG field has been added to show if the product is compatible with clients who have an ESG preference
  • Specific country fields have been added i.e. for Italy and UK

What to consider in MiFID Dissemination?

Dissemination of MiFID (EMT) data is often underestimated in terms of complexity as frequency and delivery can vary from one recipient to another:

  • There can be multiple Formats (XLS, CSV, XML, Openfunds)
  • Output can have either one ISINs or multiple ISIN in the same output
  • Frequency can be either recurring (i.e. daily, weekly, monthly) or Ad-hoc (based on material change)
  • Delivery can be via E-mail, External sFTP or a Custom API all defined by the recipient destination

As such, asset managers need to carefully consider their EMT dissemination and deliver correct, complete and up to date data to their selected list of recipients.

Are you ready for EMT 3.0 template and this update?

To successfully implement EMT 3.0 following questions should be considered by asset managers:

  • Have we received a copy of endorsed EMT 3.0?
  • Who internally or externally is reviewing EMT 3.0 on our behalf?
  • Are we aware of the changes introduced in EMT 3.0?
  • Have we checked Target Market Definitions and adjusted them to EMT 3.0 specification?
  • Are we aware of new data points present in EMT 3.0 and how these are supposed to be used?
  • Can we produce EMT 3.0 in various formats (CSV, XLSX)?
  • Can we disseminate the same ISIN in EMT 1.0 and EMT 3.0 to our distributors?
  • How frequently and in which format our distributors like to receive EMT data?
  • For German distribution, are we able to successfully convert EMT 3.0 into WM Daten format(s)?

The above are just a few questions which should assist you in getting EMT 3.0 implemented.

How can ACOLIN help?

ACOLIN is the only globally active service provider of cross-border fund distribution services that operates independently of banks. The comprehensive range of services offered by ACOLIN enables internationally active asset managers and fund companies to gain swift and straightforward access to the most important global financial markets in the EU, Switzerland and Latin America. Headquartered in Zurich, ACOLIN has subsidiaries and branches in Belgrade, Dublin, Frankfurt, Geneva, Constance, London, Milan and Madrid.

Worldwide, ACOLIN services over 600 asset managers and 1800 funds from over 30 jurisdictions with its comprehensive tailormade distribution solutions, encompassing: Representation Services, Distribution Network Management (DNM), Global Fund Registration, Online Publications, Tied Agent Service and GDPR Representation.

As part of ACOLIN Distribution Network Management (DNM) service, our clients have access to ACOLIN extensive expertise in global product distribution and to ACOLIN highly valued Data Management team. ACOLIN Data Management includes the collection, validation, processing, and dissemination of static (master) and regulatory (MiFID and PRIIPs) fund information on behalf of our clients to their selected list of Distribution Partners.

ACOLIN EMT 3.0 service offering includes:

  • Review and consultation of populated EMT 3.0
  • Validation of EMT 3.0 and production of validation report
  • Creation of EMT 3.0 out of ACOLIN Regulatory Template (ART)
  • Mapping and delivery of EMT 3.0 to WM Daten
  • Dissemination of EMT 3.0 to selected list of recipients

In case you are interested in any of the above services, or if you have any questions/comments, please do not hesitate to get in touch with us.

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About the Author

Aleksandar Kozacenko is Member of the Group Executive Committee and Head Data Strategy & Governance at ACOLIN. His role is focused on data strategy & quality, establishment of operational procedures and representation of ACOLIN at industry bodies and events.

Virtual assets, smart contracts and central bank digital currencies: transforming investment funds

By Marc Piano

Blockchain, smart contracts and virtual assets (together, DLT) can automate and digitise investment fund operations. Fund operators may want to take a close but careful look at harnessing DLT as regulation of the sector accelerates and central bank digital currencies become a reality.

“Innovation” for investment funds typically means investing in innovative companies, innovative investment strategies, or innovative investment assets. Increasingly onerous legal and administrative burdens placed on investment funds mean innovation rarely extends to the fund vehicle itself.

Despite failed predictions of DLT causing immediate upheaval in the financial services sector, global regulatory bodies and national governments are rapidly developing legal and regulatory frameworks bringing DLT into mainstream oversight.

The direction of travel appears clear: DLT could power significant efficiencies in financial services and will be regulated accordingly. Even as DLT development continues, the focus has shifted from experimentation to practical application.

Meanwhile, central banks around the world look set to introduce central bank digital currencies (CBDCs) in the medium term, which may fundamentally alter society and the economy.

Practical legal and regulatory guidance

Against this backdrop, the UK Law Society published the English law-focused “Blockchain: Legal & Regulatory Guidance” report[i] in September 2020. The report considers general legal and regulatory issues around DLT in-depth and offers practical guidance for stakeholders. The topics range across smart contracts, data protection concerns, DLT dispute resolution mechanics, and regulatory and tax treatment of virtual assets.

Investment funds operators curious about DLT and its potential for investment funds will benefit from reading the report and its analysis of issues, which may be similar in other jurisdictions.

Virtual assets

Virtual assets are digital representations of value and their transfers between parties are immutably recorded on a blockchain or distributed ledger. They are sometimes known as cryptocurrencies or virtual currencies, both of which are misleading terms as virtual assets are not nor intended to be representations of fiat currencies issued by national governments or authorities. Virtual assets do not exist outside of their recording ledger.

Tradeable virtual assets (such as Bitcoin, Ethereum and others) as an investable asset class is a topic of already abundant commentary. Investment decisions around virtual assets will always fall to the risk profile and investment strategy of a particular fund and its managers and advisors. Subject to local law and regulation, an investment fund could accept and make distributions in virtual assets. The rapid development and current popularity of decentralised finance – an article in itself – may offer investment managers alternatives beyond ‘buy and hold’ for virtual asset investment strategies.

Virtual assets as representations of equity interests in fund vehicles, and the potential for significant transaction efficiencies when combined with smart contracts fully or partly automating a fund’s operational documents, has received significantly less attention.

Smart contracts and legal contract digitisation 

Smart contracts warranted specific attention in the Law Society’s report and will be of most interest to fund operators. These are containers of self-executing code deployed on a blockchain or distributed ledger which can self-escrow and treat virtual assets in accordance with pre-coded instructions; create, distribute and remotely destroy their own virtual assets; and access and act on third party data sources. These features make smart contracts a practical vehicle for carrying out legal transactions, as the agreed terms can be reflected in code and are not subject to misinterpretation.

Paper legal agreements – such as the constitutive or subscription documents of a fund – are capable of being converted into a smart contract. Any or all of its provisions can self-enforce without further human intervention if desired. However, the code is not the law: smart contracts are still subject to the laws and regulations of the relevant jurisdictions, which may be those of the contracting parties or the parties responsible for or otherwise benefitting from the smart contract.

ISDA’s project to partially automate its product suite through smart contracts is one example of this process cited in the report[ii], known as “digitisation”. Digitisation is a project not to be undertaken lightly and a careful balance is needed between automation efficiency and commercial flexibility[iii].

Potential for funds

What follows are hypothetical possibilities.

Virtual assets representing fund equity interests

Some jurisdictions, such as the Cayman Islands, are introducing legislation recognising equity interests in investment fund vehicles represented by virtual assets[iv]. This can open up new ways to operate an investment fund.

For example, a smart contract representing a digitised subscription document could be instructed – or access third party data (such as anti-money laundering documents and checks) that confirms – that an investor has made a capital commitment having passed all commercial and regulatory prerequisites. The smart contract can then immediately issue a tokenised fund equity interest to the investor.

If a fund digitises the terms of its offering or constitutive documents as well as its subscription documents, these smart contracts can interact with each other. The tokenised equity interests can then be subject to rules and restrictions on transfer and redemptions.

Issue, transfer and redemption of tokenised equity interests all generate data which can be used to automatically maintain registers of equity interest holders. Transactions involving the interests, such as distributions, can also benefit from automatically-generated data. Alternatively, the data can be made available in encrypted form to a fund’s operator or service provider.

Valuation

Valuation policies could be digitised and allow reports to be automatically generated using external data provided to or accessed by the contract at the agreed reporting dates. Where a fund holds virtual assets tradeable 24 hours a day, the smart contract can calculate valuation by reference to external market data to provide live NAV. The smart contract can rapidly distribute these to stakeholders (such as the investment manager, operator, auditors and equity interest holders) when appropriate.

If a fund’s valuation policy offers significant latitude for discretion in valuation, the party responsible for valuation can feed any adjustments into the smart contract. This data cannot be retrospectively altered, which can result in transparency and reduces the risk of disputes.

If there are any valuation disputes, the smart contract could invoke an agreed waterfall of dispute resolution mechanics. These could include both parties negotiating “off-chain” and entering agreed valuation data into the smart contract, or instructing agreed experts to issue a binding decision reflected in amended smart contract valuation data.

Enforcement

If an equity interest holder seeks to exercise excuse rights, a legal opinion could be validated by the fund operator and confirmed to the smart contract. The smart contract can then adjust capital contribution allocations for the investment among the remaining investors and provide this data to the fund operator.

Should an equity interest holder choose or is required to withdraw from the fund for legal or regulatory reasons, the withdrawal process can be activated through the smart contract, which can record all steps in the process including recording the existence of relevant documents outside of the blockchain through a unique and unalterable identifier (known as a hash). If any recalculations of distributions or redemptions are required, these can be provided to the smart contract which can then automatically update relevant registers and records maintained by it.

If an equity interest holder defaults on a capital contribution, an operator usually has a range of remedies. This is one element where full automation may not be desirable so as to retain operator discretion depending on the circumstances of the default. Either way, the “off-chain” actions could be posted to the smart contract, and if any restrictions must be placed on the limited partner’s tokenised equity interest, or the interest is surrendered or transferred, the tokenised equity interest can be frozen, transferred or destroyed and reflected in the relevant register.

Central Bank Digital Currencies

CBDCs are described by the Bank of International Settlements as: “a new form of digital central bank money that can be distinguished from reserves or settlement balances held by commercial banks at central banks. There are various design choices for a CBDC, including: access (widely vs restricted); degree of anonymity (ranging from complete to none); operational availability (ranging from current opening hours to 24 hours a day and seven days a week); and interest bearing characteristics (yes or no)”[v].

Nearly 80% of the world’s central banks are considering issuing some form of digital currency.[vi] It is possible that CBDCs will not use the DLT technology stack. However, if CBDCs do, digitised fund operations could access and use CBDCs to accept subscriptions, make distributions and pay redemptions directly on tokenised fund interests. This raises the possibility of an entirely digitised and automated investment fund operation, including making investments and receiving returns directly using CBDCs.

CBDCs may lead to entirely cashless societies and economies where every transaction is potentially trackable and automatically taxable. Aside from addressing current issues around criminal use of assets, questions arise as to privacy, the role of financial institutions and economic access. For fund operators, however, CBDCs could interact with digitised fund operations, hasten transaction flows and allow new investment strategies.

Legal and regulatory considerations

Numerous legal obstacles must be addressed in any digitisation of fund operations.

Global regulatory acceleration

Jurisdictions and global bodies are rapidly developing recommendations for regulation of DLT. For example, the Financial Stability Board published high-level recommendations for regulation, supervision and oversight of “global stablecoin” arrangements[vii]. Stablecoins are virtual assets seeking price stability through being asset-backed, pegged to an existing fiat currency or using algorithms to adjust supply.

Dencentralised finance activities may also become subject to regulation in the near future.

Financial Action Task Force (FATF) Guidance for virtual assets

As noted in the Law Society report: “Current FATF Guidance on a risk-based approach to virtual asset activities or operations and virtual asset service providers may apply to some stakeholders, parties or counterparties where smart contracts are used to effect legal transactions involving the transfer of virtual assets. In particular, relevant platforms and service providers may be deemed to be virtual asset service providers and fall to be regulated (for AML/CFT purposes at a minimum) by a relevant financial services regulator”[viii].

In practice, many jurisdictions now apply local anti-money laundering and countering the financing of terrorism (AML/CFT) regulatory obligations to any business activities involving virtual assets, including operations of investment funds. At a minimum, these likely require fund operators undertaking customer due diligence on investors subscribing for a tokenised fund equity interest, as this is no different in practice to subscribing for a non-tokenised fund interest.

Fund operators must be alive to any potential additional local requirements, such as higher beneficial ownership verification thresholds. These considerations are particularly important for a fund operator looking to use a third party automated AML/CFT offering.

Whilst smart contracts could access and record AML/CFT documents and data on investors and transactions, the fund remains responsible for compliance. A fund’s operator must be fully satisfied that AML/CFT obligations have been discharged and evidenced before any automated subscription process triggers.

Local regulatory frameworks

Some jurisdictions may have local virtual asset legal and regulatory frameworks.

Popular offshore jurisdictions for investment funds take different approaches. The Cayman Islands passed a law in 2020 creating a full registration and licensing regime for virtual asset service providers[ix]. In contrast, the British Virgin Islands Financial Services Commission issued guidance on the regulation of virtual assets in July 2020[x]. Both jurisdictions approaches are good examples of the proactive approach taken by financial services regulators in offshore jurisdictions, who recognise the legitimacy of and investment interest in DLT and seek to provide regulatory certainty consistent with their global positioning in the investment funds market.

Fund operators should generally consider local laws and regulations around not only virtual asset activities but also securities laws, particularly if they are looking to tokenise their equity fund interests, and take legal advice at an early stage.

The future

As at publication, DLT is enjoying a resurgence following two years of relative stagnation. Whatever the reasons for this, DLT can now offer tangible benefits for fund operators seeking efficiencies in fund operations as well as offering a wide range of new investment assets and strategies. However, fund operators need to carefully consider the implications of automation against a rapidly evolving regulatory landscape.

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About the Author

Marc Piano is an Associate in the Funds and Regulatory Team of Harney Westwood & Riegels in the Cayman Islands. He co-authored the Law Society’s Blockchain: Legal & Regulatory Guidance report.

 

References

High Shipping Costs Can Cause a 63% Reduction in eCommerce Sales

Applying high shipping costs to your products can cause almost two-thirds of customers to walk away from an online sale, according to new research by Feefo.

The recent survey, by online review platform Feefo, has revealed that online businesses experience a 63% reduction in eCommerce sales as a result of high shipping costs on their items.

In addition, 79% of the study’s respondents revealed that they have previously abandoned an online shopping cart before they have completed a purchase as a result of such factors. Meanwhile, many others may not even reach the stage of adding to their cart if they are put off by shipping prices.

All this implies sellers to focus on shipping costs reduction. If you ship products locally, it’s easier to take control of shipping prices. But let’s say you need to send a parcel to Poland from the States, and suddenly, cutting shipping costs gets more complicated. 

The research suggests that there are a number of steps that lead to consumers making a buying decision. According to the study, 70% of consumers go online to search as soon as they want to buy something, and 79% of all online shoppers visit Google (41%) or Amazon (38%) the minute they decide they want to buy something.

According to Richard Tank, Head of Digital at Feefo, prices are a significant factor for many buyers, often dictating their initial choice of online business when considering multiple options, including the ‘big two’: Google and Amazon. However, brand values such as product quality and customer service can impact on the financial decision made by online shoppers.

‘Today’s digital landscape is ever-changing and businesses have to meet the needs of their customers across the whole purchase journey in order to maintain sales and brand loyalty.

The Feefo survey of 2,000 UK adults identified many different ticks and behaviours displayed throughout the purchase journey. According to the results of the study, 82% of respondents feel that price is the most important consideration. However, 28% favour product quality and just over half allow a company’s brand values to influence them when they are considering a purchase.

‘Consumer confidence and trust is essential to developing an online business that grows, and lasts,’ Tank commented. “Brands small and large must do everything they can to build relationships with their customers, to ensure they keep coming back for more.’

Tank added that companies should listen to their customers to develop a more personalised experience throughout the purchase journey, from flexible pricing to greater engagement post-purchase. ‘Technology as an enabler, must be fully utilised in order for online businesses to achieve this,’ he noted.

Betting Odds Explained: How do Odds Work in Megapari?

If you are new to online betting, the first thing you need to do is to know what odds are and how they work. It is critically essential since it allows you to know how likely a given event is to happen and the potential of winning. At first, it may seem not very clear, but with the application of simple maths, the Megapari odds are easy to understand.

What Are Betting Odds?

A sportsbook like Megapari uses betting odds to represent the likelihood of a certain outcome in either a virtual or live event. In most cases, you will find odds in the form of decimals or fractions, but some bookmakers write them with a minus or plus sign in front of the numbers, referred to as American or moneyline odds.

In any given event, betting firms can provide different outcomes. For example, in football, a sportsbook will provide you with several options such as home win, away win, or a draw. Each of these outcomes will be assigned a value based on probability. Betting odds not only apply to football but also on several events, including elections, music, and more. In addition to presenting probability, odds also help players to calculate potential winnings from their wagers.

How Betting Odds Work? 

Since there are different types of odds, you need to understand how each one of them works. This is important because you will not get confused when you meet the different odds at various sportsbooks. Some of the most popular types of odds include American odds, fractional odds, and decimal odds.

Fractional betting odds are common in events like horse racing, and you will find them in bookmakers that accept players from Europe. To calculate fractional betting odds, you need to do some division or enter any amount of money. This will show you the amount that the sportsbook will give you when you win.

Many sportsbooks across the universe use American odds, which include the likes of spread bets, money bets, and under/over bets. If you come across odds with either + or – signs, then you should know that your sportsbook uses American odds. Another thing that you will notice is that they are in terms of 100.  

These odds are easy to understand; if it is a plus, you’ll earn over £100 on a £100 wager. And if it’s a minus, you’ll need to wager over £100 to receive £100. The good thing is that you can see the potential winnings on every wager before you can place it. 

Decimal betting odds are also popular in Europe. With these odds, the favourites have lower while the underdogs have higher values. You can use this simple equation to calculate the odds; Return = Decimal Value x Initial wager. Most bookmakers use decimal odds. 

Final Thoughts

Betting odds are vital when choosing a sportsbook since they significantly affect your earnings. If you pick a bookmaker with poor odds, you’ll end up not only wasting your hard-earned cash but also your precious time. The best part is that you already understand what they are, how they work, and the different types available. With the information available in this article, you can now pick a sports betting site with odds that meet your wagering requirements.

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New Technology Trends That Spell Trouble

New Technology Trends That Spell Trouble

Humankind thrives in an age where life wouldn’t be fulfilling without technology. The fourth industrial revolution that is driven by technology comes with more perks and conveniences than any other invention in history. Technology has a tremendous positive impact on the way our lives function and expands our capabilities to scale globally and enrich our livelihood. 

However, the more dependent we become on technology, the more it can be leveraged to work against our interests. The significant scale with which technology is entrenched into our lives introduces new risks to safety, political independence, privacy, and even health. Many tech developments can be used to detriment society in the future, and here are a few of them.

Online Gambling

Online gambling was among the first ventures to exploit the entry of the internet in the mid-nineties. The sector has now ballooned to a multibillion-dollar business that is available in nearly every region across the globe. Online gambling allows punters to access a wide variety of games (like buffalo slots) found in brick and mortar establishments without compromising the comfort of their desired location. 

The accessibility of casino services with a few clicks on smartphones and PCs serves as a significant upside, but it is also encouraging the alarming trend of gambling addiction. Pathological gamblers cannot control the impulse to gamble and can result in significant negative consequences. Gambling addicts take the risk despite the results, whether they are losing or winning. Some of the effects of this addiction include:

  •  Mental disorders like depression, anxiety, stress, and suicidal impulses
  •  Alienation from friends and family
  •  Bankruptcy due to uncontrolled spending
  •  Weight loss due to depression

Digital Currencies

The past decade has been spent lauding cryptocurrencies that do not have a physical form and instead operate entirely on the digital platform. Digital currencies have a lot of factors that give them the upper hand over conventional options such as protection from inflation, self-management, more security, easy currency exchanges, and decentralized systems. However, they have drawbacks that have significant impacts. For instance, currencies like BTC and Bitcoin Cash have become the go-to option to make illegal transactions. Since privacy and security are carried with high regard in the cryptocurrency realm, it becomes difficult for authorities to track down users that make illicit transactions. Crypto options can also be used to turn cash that is acquired illicitly into clean money since transaction data is hidden.

Social Media

Social media spaces like Facebook, Instagram, and Twitter have tremendously changed people across the globe interact with each other by making it a small community. Such platforms hold billions of users that share opinions, images, videos, and other forms of entertaining and educative media. 

As helpful as these platforms have been, they are listed among the leading causes of mental health issues and other potential dangers. Some of the risks that social media comes with include:

  •  Cyberbullying
  •  Identity theft
  •  Exposure to offensive content
  •  Grooming by strangers
  •  Invasion of privacy

Spying Smart Devices

The use of smart gadgets today is so widespread that almost everyone has one or two of the devices to make their lives easier. These items make life simpler in ways that could not be thought possible one or two decades ago, including:

  • AI assistants like Alexa and Echo that listen, track, and respond to verbal commands
  • Streaming platforms like Netflix and Hulu that collect viewing history
  • Google Maps track routes to familiar places like home and can identify the most comfortable way to avoid traffic
  • Smart thermostats that know what time one arrives home so that they can adjust the temperature in the house to a comfortable level before you arrive
  • Smart security systems with cameras and motion sensors that inform the homeowner of visitors or intruders.

This info goes to the cloud, and it goes a long way in making life convenient. However, it comes with the risk of potential abuse. Such information in the hands of hackers can turn smart gadgets into recording devices that work against their owners. For instance, there have been cases of security cameras being hacked and used to record and threaten people in their homes. Some measures can be taken like turning off cameras and voice recorders when home, but since they are connected to the internet, none of them can be labelled as 100% foolproof.

AI Cloning

Artificial Intelligence is among the significant reasons that technology has taken in improving our lives in a short period. However, the massive growth of this technology is the key to cloning, which poses a lot of potential threats. For instance, AI technology can clone someone’s voice from hearing just a snippet of audio. This tech can also take a few photos or videos of an individual and create a new image or video that looks original. 

The results are usually so convincing that our brains can’t tell whether it is real or not. In the past, celebrities were the most susceptible to such deep fake technology. However, AI cloning has become so advanced that it only needs a handful of images, video, or audio to train the algorithms.

Facial Recognition

Facial recognition has also been of great help to modern society and can be used to unlock personal gadgets like smartphones and tablets for enhanced security. However, this technology can easily be used for sinister reasons as well. In China, for instance, facial recognition is being used for not only surveillance but also racial profiling. The government uses the technology to track down Uighur Muslims and put them in concentration camps. Facial recognition can also be plagued with bias if the algorithms used to train it are not diverse enough, which leads to a lot of misidentification.

Smart Dust

Motes, also known as smart dust, come in the size of a grain of salt with cameras, sensors, and power supplies, and has helped fields in medicine, security, and other take giant leaps in helping society. On the other hand, they can be turned around and be used for the invasion of citizens’ privacy without anyone noticing.

Conclusion

Along with the positives of technology advancement today, there is no doubt that it can go violently wring when placed in the wrong hands. Some measures can be applied to ensure most of these threats are kept at bay, but some of them require more effort to combat.

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