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Industrial Sickness
The sick industrial companies (special provision) act 1985, defined sickness in terms of "cash losses for two consecutive financial years and accumulated loses equaling or exceeding the net worth of the company at the end of the second financial year".
The problem of industrial sickness is nothing peculiar to our economy or any developing country. It is also present in the advanced countries, hut there it is considered prudent to shut down the units if they are sick.
But in developing countries, like India, one cannot afford to do so as it will lead to substantial block of national capital to go waste and create unemployment of those already employed, when additional employment is a crying need of the hour.
Even 'not so fit' or 'unfit' industries may have to be rendered a helping hand to raise and stand on their own, to avoid wastage or total loss of funds and other resources already invested therein.
Learn about:-
1. Introduction to Industrial Sickness 2. Definitions of Industrial Sickness 3. Nature 4. Concept 5. Stages 6. Signal
7. Symptoms 8. Causes 9. Criteria to Identify Sickness 10. Magnitude 11. Reasons and Their Consequences 12. Prevention.
Industrial Sickness: Definitions, Nature, Concept, Stages, Symptoms, Causes, Magnitude, Reasons, Consequences and Prevention
Introduction to Industrial Sickness
Definitions of Industrial Sickness
Nature of Industrial Sickness
Concept of Industrial Sickness
Stages of Sickness in an Industrial Unit
Signal of Industrial Sickness
Symptoms of Industrial Sickness
Causes of Sickness in Units
Criteria to Identify Sickness/Incipient Sickness
Magnitude of Industrial Sickness
Reasons and Their Consequences of Industrial Sickness
Consequences of Industrial Sickness
Prevention of Industrial Sickness
Industrial Sickness – Introduction
Problem of industrial sickness is not specific to any industry or country. The approach to sickness is to restore a unit to normalcy through restructuring devices within a short period of time or else close it down. Such easy and straight forward options are not available to labour abundant economies like India which can ill afford large scale unemployment either of labour or of valuable productive assets caused by sickness.
Further, sizeable funds of banks and financial institutions and blocked up in sick units which impair the banks profitably and their ability to recycle fund in other productive areas. This has an adverse effect on the economy of country like India. Thus, industrial sickness is a result of faulty management policies as well as fiscal problems. Under such circumstances, fiscal reforms programme with a determined management and relevant management policies for revival of sick industries are need of the hour.
"Industrial development is identified as the effective means to the economic growth in any country. Industrial sickness has become a common feature of the large scale sector as well as small scale sector. In spite of the enactment of special legislations and various steps taken by the government and RBI to deal with the problem, industrial sickness is growing. The liberalization of the economy resulting into increased competition has added to the problem of industrial sickness." "Closures of business units and corporate failures resulting in bankruptcies have become a normal feature in market economies the world over".
Growing competition and the ever-changing international economic environment often lead to high incidence of corporate failures in developed market economies. However, these economies have the resilience to absorb the economic disturbances brought about by the closure of industrial units. In order to combat the problem of industrial sickness, a comprehensive assessment of the magnitude of industrial sickness and an analysis of the main factors which bring about sickness are necessary.
Both prevention and cure of industrial sickness would depend on our ability to identify sickness as early as possible and analyze its causes. Faulty or delayed identification would reduce the effectiveness of the remedial action such as restoring the financial viability of sick units and protecting units which would become sick.
The problem of industrial sickness is nothing peculiar to our economy or any developing country. It is also present in the advanced countries, hut there it is considered prudent to shut down the units if they are sick. But in developing countries, like India, one cannot afford to do so as it will lead to substantial block of national capital to go waste and create unemployment of those already employed, when additional employment is a crying need of the hour. Even 'not so fit' or 'unfit' industries may have to be rendered a helping hand to raise and stand on their own, to avoid wastage or total loss of funds and other resources already invested therein.
Industrial Sickness – Definitions
In general a sick unit can be defined as a unit that fails to generate surplus on a continuous basis and frequently depend on external funds for its survival.
According to the Reserve Bank of India (RBI) a small scale unit is considered as a sick unit if it has "incurred cash loss in the previous accounting year and is likely to continue to incur cash loss in the current accounting year and has on erosion on account of cumulative cash losses to the extent of 50 percent of those of its net worth".
According to ICICI, a sick industry is one whose financial viability is threatened by adverse factors present and continuing. The adverse factor might relate to management, market fiscal burden, labour relations or any other. When the impact of factors reaches a point where a company begins to, incurred cash losses leading to erosion of its funds, there is threat to its financial stability.
The definition of sick small scale industry has been modified as, "A small scale, industrial unit should be considered as sick if it has, at the end of any accounting year, accumulated losses equal to or exceeding 50 percent of its peak – net Worth in "the immediately preceding five accounting years"
Various studies were conducted to determine the causes of sickness in small scale industry.
The brief review of the study is as follows:
1. In 1975 the study team of State Bank of India, stated lack of management expertise and lack of adoption of sound business principles in running the enterprise are the important factors that lead to extensive sickness in small scale industry.
2. The 1988, FICCI survey stated, in sufficient or delayed receipt of working capital and heavy dependence on other sources of finance and the inability to spend on advertisement and salesmanship are the reasons for sickness in small scale industry.
3. U.K. Mazumandar and A. Nag of Indian institute of economics, conducted a survey and revealed that lack of finance to meet working capital needs and non-availability of raw materials are the principal reasons for sickness.
4. Andhra Pradesh state financial corporation conducted a study and observed that the problem of finance, production and marketing have been equally contributing towards the sickness of small scale industry.
5. The Haryana unit of the All India Federation of the small and rural industries said, the basic factor responsible for sickness of small units was delayed payment by the principals for more than four months.
Industrial Sickness – Concept
The recent RBI guidelines facilitate the detection of sickness at the incipient stage but only for large and medium units.
An industrial unit will be termed as "weak," if at the end of any accounting year it has:
(i) Accumulated losses equal to or exceeding 50 per cent of its peak net worth in the immediately preceding five accounting years,
(ii) A current ratio of less than 1:1,
(iii) Suffered a cash loss in the immediately preceding accounting year.
Incipient Sickness:
If the downfall in the smooth functioning of various operational areas of the unit continues unabated. The actual process of sickness then starts.
Such a stage is considered to be incipient sickness and is identified by reference to the following symptoms:
(1) There are continuous such losses from year to year and the trend is expected to continue in future.
(2) Deterioration is expected in the current ratio in the current financial year, even though the same may have been more than one in the previous financial year.
(3) There is gradual erosion in the net worth during the previous and current financial year and is expected to continue in future also.
(4) Deterioration continues in the debt-equity position in the current financial year and subsequently also.
In a nutshell, it may be seen that incipient industrial sickness is that stage where the unit incurs cash losses; however the position of financial structure may not be very much alarming. This is the time to take certain corrective measures to prevent the unit from turning into sickness. This will, however, require proper identification, care and follow-up programme.
According to Section 3(0) of the Sick Industrial Companies (Special Provisions) Act, 1985, a sick industrial company is an industrial company (being a company registered for not less than 5 years) which has at the end of any financial year accumulated losses equal to or exceeding its entire net worth. The condition of 7 years have reduced to 5 years and the condition regarding cash losses has been omitted by the 1993 Amendment.
With regard to potentially sick industrial companies the SICA has provisions for identifying impending sickness as of 50% or more of the net worth. If the accumulated losses of an industrial company in any financial year have resulted in erosion of 50% or more of its net worth during the immediately preceding 4 years (5 years reduced to 4 years by the 1993 Amendment), it is considered as potentially sick and in such cases the company shall within a period of 60 days from the date of finalization of the duly audited accounts of the company for the relevant financial year report to this effect to the Board and held a general meeting of the shareholders of the company for bringing the fact to their notice.
Industrial Sickness – Nature
The policy of over-regulation of the entire industrial sector, coupled with restrictions on closing a financially sick unit or reducing staff strength, led to a growing menace of industrial sickness, that is, the phenomenon of industry and business units running into a persistent loss and erosion of net worth.
Instances also came to light where the entrepreneurs deliberately made a unit financially sick by exploiting it for personal gain. Over years, the growing menace of industrial sickness not only assumed a cancerous form but also endangered the financial institutions, which had extended loans to them.
The phenomenon of industrial sickness has been fed by both fraudulent approach by the owners and the faulty policies pursued by the authorities. The government has been guilty of over-regulating the industrial units to an extent that left little scope for a reasonable return on investment by fair means.
At the same time, the government policies also provided an ample scope and temptation for frauds and mismanagement. Frequently, the permitted sales price was insufficient to cover the cost of inputs. The authorities also failed to formulate and implement a labour and wage policy in conformity with the needs of growing industrialization of the economy.
Normally, when a business unit turns financially sick, avenues should be explored for restructuring and reviving it. In the process, it may even be given a fresh injection of capital. In case this remedy is not expected to work, it should be allowed to close down. In India, however, the policy of the Government has been to keep these units alive through financial support from itself and from the financial institutions with the objective of protecting the jobs of the employees.
Industrial Sickness – Stages of Sickness in an Industrial Unit: Normal Unit, Tending towards Sickness, Incipient Sickness, Sickness and Chronic Sickness
Bidani and Mitra have identified four stages of sickness before a normal unit fails and finally closes down (see Table 3.6):
Stages of Sickness:
Healthy Unit:
A healthy unit is one where all the systems and sub-systems, and all the functional areas like finance, production, marketing and personnel, are performing efficiently. That is, when a unit is earning sufficient profit, when its current ratio is more than one, when its tangible net worth is positive, and when its debt-equity ratio is reasonable, it may be termed as healthy.
Further, a healthy unit must also be capable of withstanding the ever-changing external environment, as the antibodies in a healthy human being fight the viral or bacterial infections.
Tending towards Sickness:
When certain aberrations start taking place in any of the functional areas of a unit, due to some internal problems or external (environmental) constraints, it may be said to be tending towards sickness. The indicators at this stage may be decline in the profit last year as compared to the previous year and the estimated losses in the current year.
At this stage, both the banker and the borrower would do well to carefully diagnose and analyze the various causes of the initial ailments and take the necessary preventive measures so that the unit may be saved from deteriorating further and falling sick.
If the initial aberrations are not arrested in time, the position may deteriorate and the actual sickness may set in.
This stage may be termed as the incipient sickness stage of the unit, which may be determined by the following factors:
i. The unit had incurred a cash loss during the last year and was expected to incur a cash loss even in the current year,
ii. Though the current ratio of the unit was more than one at the end of its last financial year, it was expected to deteriorate to less than one during the current financial year,
iii. The tangible net worth (TNW) of the unit was expected to contract during the current financial year.
iv. The debt-equity ratio of the unit was expected to deteriorate during the current financial year.
The bank officers may be able to detect the incipient sickness in a unit in time through an effective system of supervision and follow-up of the advances. After having done so, they should promptly review the overall position of the unit, identify the area of deficiency, and initiate the necessary corrective steps, in full cooperation with the entrepreneurs, with a view to preventing the unit from falling sick.
If the necessary corrective measures are not taken promptly at the incipient stage or are inadequate, the causal factors may continue to adversely affect the functional areas, gradually worsening the overall position of the unit, which may ultimately fall sick.
At this stage, the bank officers are expected to urgently undertake the detailed viability study of the sick unit. If the unit is considered viable, they should promptly formulate and implement a comprehensive rehabilitation programme with the close cooperation of the entrepreneurs, with a view to nursing the unit back to health. Timely action is of essence in such matters because delay may turn even a viable unit into a terminally sick unit. If the unit is, however, found to be non-viable for rehabilitation by the bank, the advance should be called up without delay so as to contain the losses of the bank and the borrowers.
Death or Closure of the Units:
When the company or unit continues to accumulate cash losses for a period of several years in the past, its manufacturing processes have stopped, and it has no access to finances, its revival is just not possible. This is the final stage of closure or death of a unit.
Industrial Sickness – Signals of Industrial Sickness
The sign of sickness may be discernable at quite an early stage. This warning sign is termed as "Signal". In fact, the timely identification of various signals makes the detection of sickness easier. Therefore, the various signals as listed below need to be identified and monitored at an early stage.
The important signals of sickness are:
1. Decline in capacity utilisation
2. Irregularity in maintaining bank account
3. Non-submission of the data to bank financial institutions
4. Inventories in excessive quantities
5. Frequent break down in plant/equipments
6. Decline in technical deficiency
7. Decline in the quality of the products/services
8. Shortage of liquid funds for short-term financial obligations
9. Default in the payment of statutory dues
10. Frequent turnover of personnel in the industries.
Industrial Sickness – Symptoms of Sickness
The persistence of many signals for a long period of time is termed as symptoms of sickness, the various symptoms ultimately reflect on the plant performance (capacity utilization, financial capital ratio, share market value practices in the diverse areas of finance, production, marketing and labour relation in the industry).
Some of the important symptoms are:
1. Deteriorating financial ratio
2. Delay in the audit of annual account
3. Persisting shortage of cash flow
4. Continuous tumble in the price of the shares
5. Delay in the payment of statutory dues
6. Widespread use of creative accounting
7. Frequent request for loans
8. Morale degration of the employees
9. Desperation amongst the top and middle managerial level.
However, the financial ratios, in each case cannot be considered as true symptoms of industrial sickness.
It is over to two main factors:
1. The sickness prone unit – To present a better and sound image, one must do lot of window dressing.
2. Financial data – It may be available after a gap of one year.
However, an early identification of symptoms makes the task of detecting easier and fast.
Industrial Sickness – Causes of Sickness in Units: Problems in Production, Lack of Orders, Lack of Raw Materials, Cash Crunch, Increased Cost of Raw Material and a Few Others
There are many glitches that can lead to sickness among industrial units.
Some of the common causes leading to failing health of small units are discussed as follows:
1. Problems in Production:
Problems in production may arise due to:
i. Machine breakdowns, poor maintenance
ii. Poor quality of raw materials
iii. Poor labour productivity
iv. Power shortage
v. Lack of production, planning, and control
vi. Delayed supplies from sub-contractors
vii. Poor industrial relations.
2. Lack of Orders:
A unit may suffer as it does not get enough orders to match its anticipated or targeted production targets.
The lack of orders could be due to any of the following reasons:
i. Competition
ii. Recession
iii. Low quality technical incompetence
iv. Irregular deliveries
v. Poor marketing efforts
vi. Obsolescence
3. Lack of Raw Materials:
Diminished or poor supply of raw materials could be due to:
i. National or regional shortage
ii. High cost
iii. Overdue payments to suppliers
iv. Poor quality
v. Uncertain suppliers
vi. Lack of planning.
4. Cash Crunch:
This arises due to any of the following:
i. Deliberate diversion of funds
ii. Well-intentioned but unwise diversion (e.g., unplanned diversification)
iii. Poor collections
iv. Unplanned payments to creditors
v. High inventory
vi. Unproductive and flamboyant expenditure
5. Increased Cost of Raw Material:
This is a common cause that may lead to the sickness of a unit.
It could be due to:
i. Increased costs not covered in selling prices due to faulty costing
ii. Large orders booked at fixed prices in an inflationary market
iii. High material wastage
iv. High inventory costs.
6. Increased Overhead Costs:
Increased overhead costs may arise due to:
i. Inefficient production
ii. Un utilized capacity
iii. Heavy borrowings, high interest charges
iv. Increased administration or selling costs
v. Unplanned capital expenditure
vi. New product development or diversification.
Industrial Sickness – Criteria to Identify Sickness/Incipient Sickness
In order to measure sickness, information on, whether the unit has outstanding source(s) of the loan (institutional/non-institutional), whether there was delay in institutional loan for more than 12 months and whether there was erosion in the extent of 50 per cent of the net worth during the previous accounting year, was collected in the Census.
On the basis of this information, the definition given by the Kohli Committee measure sickness. In other to measure incipient sickness, the continuous decline in three consecutive years was identified as a suitable indicator, and so information given was continuous decline in gross output compared to the previous two financial data collected.
Thus, the following criteria was adapted to identify sick/ incipient sick census:
(i) Continuous decline in gross output compared to the previous two financial years.
(ii) Delay in repayment of institutional loan, for more than 12 months, and
(iii) Erosion in the net worth to the extent of 50 per cent of the net worth during the accounting year.
Sickness/incipient being a leading question, the enumerators were asked from the entrepreneurs of the units satisfying at least one of the above criteria, and has not been running satisfactorily.
Industrial Sickness – Magnitude of Industrial Sickness in India
In the process of economical and industrial development a certain level of sickness is bound to exist as inefficient units are bound to be displaced from industrial scene by more efficient units.
Table 8.3 present the global phenomena of industrial sickness:
Table 8.4 depicts data on the number of total SSI vis-a-vis number of sick small scale industries during 1977-91 in India. A close look at this table clearly reveals that the growth of sick SSI unit far exceeds the growth of SSI units indicated by the ratio of sick units to total units. It can also be noticed that incidence of sickness in SSI units assumed alarming proportion during the eighties to quote the ratio of sick units to total units trailed at 1:20 to 1:5 by 1988.
The cause of very high incidence during the eighties is inter alia due to government liberalisation policy during sixth and seventh five year plans. During these periods there was a flood of SSI units competing with each other and resulting in more sick units. Due to heavy competition today the ratio of sick to total units stands at 1:10. The incidence of sickness has advanced to an extreme form making the majority of units non-viable.
At the end of 1991, out of 2.21 x 105 sick units 2.03 x 105 units (91.66%) were considered as nonviable. They have a credit of Rs.1997.13 crores i.e., 71.53% of total outstanding credit to all sick units. Thus, almost 9 out of 10 small units were found to be non-viable. These units cannot be cured, they are as good as dead units.
State-wise distribution of small units vis-a-vis sick SSI units is shown in table 8.5. This table reveals four distinctly different points.
Table 8.6 clearly reveals that no. of sick small units follow the following trends:
Eastern (44.7%), Northern (21.2%), Southern (17.6%) and Western Region (16.4%). However, in terms of outstanding book credit it follows- Western (31.3%), Southern (23.2%), Northern (24.1%) and Eastern zones (22.4%). Most of the sick units are iron and steel (41%) and others (22%) (Electricals, Chemicals, Textiles etc.)
Industrial Sickness – Reasons and their Consequences of Sickness
It cannot be attributed to a single factor alone. In fact, it is cumulative effect of many factors inter-related/independent of each other.
The main reasons for the sickness can be categoried as:
1. External or Exogenous causes
2. Internal or Endogenous causes
1. Exogenous Causes:
There may be several exogenous factors causing a unit sick. It may vary from time to time for industry to industry and/or even one time to other or the same industry.
The important external reasons may be:
(i) Shortage of financial resources
(ii) Labour unrest/strike
(iii) Lack of demands of the product
(iv) Change in industrial policy
(v) Poor inventory maintenance
(vi) Untimely supply of/purchase of raw materials
(vii) Natural calamities like food, earthquake, drought etc.
(viii) Recessionary trends hovering the industry.
All the above factors can be broadly classified as:
(i) Governmental policy
(ii) Natural calamities
(iii) Environmental conditions
2. Endogenous Reasons:
These are mainly due to some internal deficiencies in several functional areas, viz. personnel, production, marketing, management and/or finance.
Majority of the projects (54%) are found to be sick due to internal reasons like poor management, labour problems, operative problems, poor implementation and /or lack of sufficient working capital.
This type of sickness may occur at every stage as:
First Stage:
It happens during planning and construction stage. The unit may be located at an uneconomical location, adopted an inefficient method of production and/or planned to produce an obsolete item.
Second stage:
Unit might have committed some mistakes during recruitment, training of the workers, unestimation of various inputs (fund, labour, power, water etc.). It cannot be corrected easily at late hours.
Third Stage:
It may arise even if the unit is in full swing. It may be due to demand of product which might have changed. New technologies might have taken place and/or new or more competitors have entered in the market.
Studies show that small scale units are mainly sick due to exogenous causes, whereas endogenous causes play important role in making large units sick.
Small units are so small that they cannot withstand fluctuation in the market, frequent change in government policy and/or market policies. They work with very small margin of profit and as such even small error may make them sick. Due to this, small units are highly prone to sickness.
The main consequences of enterprises sickness are:
1. Emergence of industrial unrest
2. Wastage of resources
3. Loss of tax payers revenues
4. Financial loss to banks/financial institutions
5. Loss of employment opportunities
6. Adverse effect on prospective entrepreneurs
7. Hardship to the public
8. Market fluctuation.
In a nutshell, whatever may be the reasons of sickness, the consequences are always same viz. loss of employment/production, economy hardship, chronic unemployment and shortage of goods. Thus, "industrial sickness is a blot on the country's economy".
Industrial Sickness – Consequences of Industrial Sickness: Huge Financial Loss, Rise of Industrial Unrest, Adverse Effect, Loss of Revenue to the Government and a Few Others
The main consequences of industrial sickness have led towards wastage of scarce capital assets, increase in unemployment, locking up of economy's financial resources and loss of production.
Let us discuss the various consequences of industrial sickness in detail:
i. Huge Financial Losses to the Banks and the Financial Institutions:
The banks and financial institutions provide substantial funds to start an industry. But due to industrial sickness huge funds has been locked up which has impinged on the future lending capacity of the banks and the financial institutions.
The recovery of the overdue takes an unduly long period of time and in many cases only a small portion of the overdue amount is finally recovered. Thus it bears an adverse effect on the financial health of the banks and institution.
ii. Rise of Industrial Unrest:
The shutdown of a sick unit results into unemployment and leads towards industrial unrest. Whenever a worker is removed or retrenched from his job the trade union starts opposing the management's decision and resort to strikes. Such type of disturbances threaten the peace and spoil the industrial environment. This results into set back of industrial production.
iii. Adverse Effect on Prospective Investors and Entrepreneurs:
Due to industrial sickness, the share prices of the units goes down which in turn adversely affects the stock market of the country. Thus industrial sickness creates a psychological disinterest for investment among the prospective investors, leading towards non- conduciveness in the industrial development of the economy.
iv. Loss of Revenue to the Government:
A substantial portion of the revenue is raised by the Government from the industrial units through various ways like taxes and duties. But this possibility of raising substantial revenues from the industries is reduced due to industrial sickness, thus industrial sickness results into loss of revenue to the Government. This shortage of revenue automatically effects the/ functioning of the economy as a whole.
v. Unemployment Problem:
Industrial sickness has resulted into a serious consequence of loss of employment resulting into socio economic problem. According to an estimation made, nearly 30 lakh workers are affected due to closure of sick and weak units.
vi. Scarce Resource are Wasted:
In an under developed, country like India, there is a lot of scarcity of resources and if these resources are locked up in sick units, it becomes a wastage of scarce resource which if in case invested at a right unit would have yielded substantial returns to the economy.
Industrial Sickness – Prevention of Sickness: Term Lending Institutions, Commercial Banks, Entrepreneurship and the Government
Units falling sick have been studied extensively. Some units are born sick, some units are made sick, and in case of some units, sickness is thrust up on them. Four groups can play a dominant role in preventing units from falling sick.
1. Term lending institutions,
2. Commercial banks,
3. Entrepreneurs, and
4. The government.
1. Term Lending Institutions:
If the term lending institutions take the following steps, sickness can be prevented:
i. Proper appraisal of management of the project
ii. Ascertaining the marketability of the end products of the unit before lending
iii. Extra care in assessing the suitability, technical feasibility of plant and machinery if it is second-hand one
iv. Ensuring the timely implementation of the project.
2. Commercial Banks:
Since the commercial banks are the ones providing resources for serving successfully, they have to take the following steps to prevent sickness:
i. Noticing that the withdrawals in the account do not exceed the permissible drawing power continuously over a period of time
ii. Frequent scrutiny of the ledger account with the master intelligences
iii. Frequent interaction with the entrepreneur
3. The Entrepreneur:
The successful running of the unit surely depends on the ability and sustainable effort of the entrepreneur. It is the entrepreneur who conceives, implements, and manages the project to avert sickness in the unit.
They can prevent sickness by:
i. Selecting the supplier of the machinery with care
ii. Doing the homework properly
iii. Paying adequate attention to the deficiencies in the unit
iv. Careful selection of the partners.
4. The Government:
The Government too can help in controlling sickness by not making sudden changes in the industrial policy such as – the following, which may destabilize the small units:
i. Several changes related to existing units
ii. Policy to discourage new investment
iii. Withdrawal of subsidies
iv. Opening up of reserved items for big industries.
Causes of Industrial Sickness
Selection of the Site for an Industrial Plant | Site Selection | Industrial Engineering
Estimation of Industrial Wages in India | Workers | Industrial Management
Sources of Industrial Finance in India | Financial Management
Management, Industries, Industrial Sickness
Forms of Business Organisation


Sonoma winemakers' plan to be the 'first 100% sustainable county' in the US is a well-intentioned but ultimately meaningless goal for most wine drinkers.
Several media outlets ran with last week's announcement that Sonoma winemakers and grape growers will unite to ensure that 'consumers will be able to purchase any Sonoma County wine with confidence, knowing that all of the region's wines are grown and made in the nation's first 100% sustainable county'.
It's apt timing given the current drought across California. But, while no one doubts the serious intent among Sonoma's winemakers, grand declarations like this can be unhelpful.
As a concept, sustainability infers much but means little. The term is barely 25 years old and it is already one of the most hackneyed in the English language.
What Sonoma County Winegrowers means is that it plans to get all the region's producers signed up to third party criteria on sustainable practices, drawing heavily on a comprehensive code written by the California Sustainable Winegrowing Alliance.
It aims to do this by 2019 and it assumes that this is something consumers want to know about.
Yet, the idea that Sonoma wine will become 100% sustainable is a red herring. Firstly, sustainable development has no finishing line as such.
Secondly, the announcement invites us to compare levels of 'sustainability' between wine regions, and this is extremely hard because there is no one definition of the term, there are different certification systems and the degree of social and environmental challenges varies.
This was partly the point made by Beverley Blanning MW back in the November 2007 issue of Decanter Magazine. Parisian bureaucrats at the OIV, which sets international rules on winemaking, have drawn up guidelines on sustainable development, but these are seldom openly referred to.
Alongside these issues, there is a debate over what consumers need or want to know about sustainable development.
As a wine drinker, do you want reassurance, and evidence, that you're buying wine from an estate with an environmental and social conscience? Or do you simply care about the winery's ability to continue delivering top-drawer wines?
A greater commitment to environmental stewardship should be applauded, and Sonoma County deserves praise for its ambition. But, the concept of sustainability needs more careful consideration by all connected to the global wine sector if it is to be credible.


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Although this is not a trading site, we hope very much to start selling on-line in the New Year (2009).
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Q: Is this an AND gate due to the fact that if one input voltage is low, and the other is high, then the X node has two different voltages? Am I thinking of this in the correct way? Any other explanation over how this functions as an AND gate would be greatly appreciated.

A: A node has one voltage. That's what a node is.
Given the current source, one or both of the diodes will be conducting. You can now write the input voltages for all combinations of input, and see what the output voltage is. Remember that a diode conducts only when forward biased, and if so then the forward voltage drop is about 0.7V. If a diode is not forward-biased, it is like an open circuit in this case.
You're correct that it is an AND gate. But you should build this thing on a breadboard or in a simulator and play with it to see what it does.
This site provides everything you'll need for that:

simulate this circuit – Schematic created using CircuitLab
When you run the simulation, click on any of the logic inputs (1 in a circle), and press space to toggle it. The current and voltage meters help you see what's happening, and where do the currents flow.
Again: this site provides the schematic editor and circuit simulator for you inside of each question and answer editor box. There's a little schematic symbol that inserts a schematic. Simple enough schematics can be simulated in real time as you tweak them (at DC).

A: Yes it is an AND gate.  But its not due to the fact that X would have two different voltages.  X will always have exactly one voltage.
If either A or B is low then X will be low.
X will only be high if both A and B are high.
The forward voltage of D1 or D2 is going to be nominally 0.7V.  So if A is low then the other side of D1 must be at 0.7V.  0.7V would be considered logic low.  The same argument applies to B and D2.

redpajama_set_name: RedPajamaStackExchange


The professional chefs at Michelin-star restaurants all over Europe and North America and those who strive to be the best require the unbeaten quality of the kitchen appliances. Frigidaire pro series offers professional refrigerators that meet the highest standards. Frigidaire is one of the brands in Electrolux's family. Electrolux has a long history of success based on thoughtfully designed products that are the result of constant investment in consumer's needs research. The developing of the best kitchen appliances also involve a close collaboration and consulting with professional chefs, as well as the state-of-the-art production equipment. In this article we are going to review the model of frigidaire professional refrigerator and find out its strong and weak sides, so you could make up your mind.
Consumers usually buy this type of product for the commercial purposes, so they require it to promote their business and, eventually, the net profit. Therefore, a professional refrigerator should maintain the complete freshness of the foodstuffs as long as possible. It has to be easy to clean and maintain. It has to be roomy in most of the cases. Convenience and quiet work is a plus. Nowadays, the energy saving technology and thus the possibility to save the money, make the product outstanding and desirable. Adjustable bins and shelves, extra functions also bump the product to the category of superior quality units. Frigidaire professional reviews promise the compliance of this product with the quality requirements. Let us figure it out whether it is a truthful statement.
Refrigerator shows 19 cu. ft. capacity and has 20.6 square feet total shelf area, all spill-proof glass.
Full-width shelves of a refrigerator provide fast, easy, and convenient access to any large item, even 26 inches wide.
There is also full-width Deli Drawer in a refrigerator for storing sandwiches, cheeses, deli meats, or any food that is frequently used.
Four clear two-liter bins can be easily mounted on the door in one of the adjustable positions.
Freezer also features 19 cu. ft. capacity and has 20.9 square feet total shelf area.
Two storage baskets of the freezer slide out like a breeze and provide an easy access and keep things organized.
The freezer is equipped with five clear door bins that can be adjusted, one full-width fixed door bin, and a factory installed powerful automatic icemaker.
This frigidaire professional refrigerator is designed, front end engineered, and assembled in the U.S.A. and that's is why you may be quite confident in its decent quality. Both sections feature 38 cu. ft. capacity and that is pretty much even as for a professional appliance. The space-pro shelving attracts attention due to a great possibility to optimize the space and have a quick and convenient access to your foodstuffs. In addition, the air purifying system prevents the ingredients from odors seven times more efficient, thus, they will keep tasting fresh. A PowerPlus icemaker is powerful and allows unlimited access to ice, which is great concerning drinks serving, sorbet making, or many other сooking processes. The last but not least argument is an affordable price.
Some users in frigidaire professional reviews complain that the trim may by a bit shaky to install, so you will need some skills to set up this unit. However, any equipment requires some installation. The other consumers consider it to be a little noisy but, taking into consideration its capacity and principally non-domestic use, it is an expected issue.
This model of frigidaire pro series is a comprehensive, functional, optimized professional kitchen appliance. It comes at the affordable price and promises a wide range of options aligned with good quality. In general, it has all odds of success.


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Minnesota Awaits, So Larry Fitzgerald Will Play
Wide receiver pushes through injuries, which helps Cardinals on multiple levels
Darren Urban
Cardinals wide receiver Larry Fitzgerald, dealing with various injuries, will play for the fifth time in his home state of Minnesota Sunday.
Larry Fitzgerald, as he has for each time before, shrugs off the Cardinals' latest journey back to his home state of Minnesota for a game as nothing more than a "business trip."
The Pro Bowl wide receiver has never won in four regular-season visits, although he said that doesn't really bother him.
"It would bother me if I played for the Vikings, if I hadn't won a game there," Fitzgerald said, laughing. "It's not like I have a big body of work there."
Fitzgerald would like to change that Sunday. He'll get that chance despite being noticeably banged up. He sprained an ankle in Carolina before the bye. Last week, he was submarined by 49ers safety Jimmie Ward on a hit that left him with an MCL
sprain and Ward said postgame Fitzgerald told him during the game something had torn.
Fitzgerald waved off the maladies Thursday, noting he practiced full and would be playing against the Vikings. Of this coach Bruce Arians had been certain back on Monday, saying it would be "shocking" if Fitzgerald missed a game in his hometown.
"It's just a mentality Fitz has," said fellow wide receiver Michael Floyd, himself a Minnesota native. "He doesn't want to let anyone down. That's the whole thing. He can play through it. It might hurt, but at the end of the day he's going to perform for his teammates."
Fitzgerald, somewhat quietly, is having another excellent year. After setting a career-high with 109 catches a season ago, Fitzgerald has 68 already this season, second in the NFL only to the 69 by Pittsburgh's Antonio Brown. That pace would easily surpass last year's total. He has a team-best 687 yards receiving and five touchdowns.
Even with Floyd coming off his best game of the season and John Brown healthier, not having Fitzgerald for a game would be a major blow to the Cardinals.
Not that it was ever a doubt this week. Not to Fitz.
[READ: LARRY FITZGERALD'S MINNESOTA LOVE AFFAIR]
"This is Week 11 in the National Football League," the 33-year-old Fitzgerald said. "If you're playing a lot … you're not 100 percent, is what I'm telling you. That's just part of the deal.
"I can't think of one year where something wasn't bothering me, from a broken finger, to an ankle to tightness in the
hammies. Something is always going to bother you."
Always more of a lead-by-example kind of guy – it's never bothered Fitzgerald when he doesn't wear the captain's "C" – he dismissed the idea he inspires teammates by playing through injuries. Except that's exactly what happens.
"It's a violent sport," cornerback Justin Bethel said. "But Larry knows how much of a leader he is to this team, and he knows, even if he is going through something, how much it means to us to see him out there.
"It's, 'Hey man, I want to be out here with you boys, I want to play for you boys. I'm going to keep bleeding for you.' "
Nine catches in his hometown will move Fitzgerald into fifth in the NFL all-time, surpassing Tim Brown. He needs 133 yards – his season-high that he got last game – to surpass Andre Johnson for 10th all-time.
"If I was voting for the Hall of Fame, he'd get my vote every time," Vikings coach Mike Zimmer said.
Fitzgerald, who knows his career is winding down sooner rather than later, said he hasn't given any thought of whether this could be his last game in Minnesota. He noted there is still a chance the Cardinals could play there in the postseason, and the Cardinals will also play there in 2017 if they finish in the same NFC West spot as the Vikings do in the NFC North.
The Super Bowl after the 2017 season will also be in Minnesota, although Fitzgerald said with a smile, "I prefer to go to Houston."
That's where the Super Bowl is this season.
The Cardinals will need lots of Fitzgerald – in Minnesota and everywhere else – to have a chance to make that happen.
"The guy loves football," offensive coordinator Harold Goodwin said. "He never wants to come off the grass."
Fitzgerald Through The Years
Various images of Pro Bowl receiver Larry Fitzgerald, from his younger days to his Cardinals days
With Mom and Dad at a Holy Angels high school game in Minnesota
As a Vikings ballboy
Fitz circa 2004
Fitz jumps off a building, bungee-style, in New Zealand
A post-lockout Sports Illustrated cover
Fabulous one-handed preseason catch in Oakland
Digging to help the poor get water in Africa on an Oxfam trip
Fitz hanging out in Dubai
Saying hi from the boat during a USO tour
A hug from Kurt Warner after winning the NFC Championship
During a year of prep school at Valley Forge Military
Talking to the media after the NFC Championship
The sign out front of Fitzgerald's high school in Minnesota
After practice with his son
Driving his boat around the lake behind his Minnesota house
Finishing Pat's Run (alongside Cards VP of Media Relations Mark Dalton, bottom left)
SI for Kids cover reminding everyone about Fitz's quest in the fight against breast cancer
With little brother Marcus once upon a time
Addressing the fans at the airport rally after the Super Bowl
On the set of ESPN's SportsCenter
A leap for joy
At the pyramids in Egypt
In his "This is SportsCenter" commercial
With Drew Brees and Eli Manning at the Pro Bowl
A great catch at training camp
Sand surfing in the Arab desert
With Jared Allen during a USO tour to visit the troops
With his son the day before the Super Bowl
The Sports Illustrated cover after the first playoff win in 2008
With Kurt Warner and future NFL first-round pick Prince Amakamura when Amakamura played at Glendale Apollo High School
With Adrian Peterson at the Pro Bowl
Helping in Africa on an Oxfam trip
Waiting for another chance to play
Watt A Comeback: Cardinals Officially Activate J.J. Watt
Defensive lineman on the roster and ready for Monday playoff game
How To Watch: Wild Card Playoffs - Cardinals-Rams
Check out all the ways to watch, listen and live stream Arizona Cardinals vs. the Los Angeles Rams on January 17, 2022
Playoff Game Against Rams Gives Chance For Wild Cardinals
Rubber match between two teams leads to Divisional Round
Cardinals Release Breon Borders
Creates roster spot with Watt activation likely
Cardinals Have To Find Way To Deal With Donald
Notes: Conner among a handful of game-day decisions
Three Big Things: Wild Card Playoff Week
A look at the top storylines for Monday's game against Rams
Vance Joseph Focused On Cardinals' Unfinished Business
Defensive Coordinator will have head coaching interview, but Rams come first
Zach Ertz Has Evolved Into Kyler Murray's Top Target
Notes: Baker named second-team All-Pro
Kyler Murray Finally Reaches The Spotlighted Stage Of Playoffs
Quarterback has thrived in past big moments, ready to do so again

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Presenters Feedback
Sofia Sinfonietta
The Sofia Sinfonietta keeps and successfully develops the traditions of the chamber orchestra set up in 1972 by the eminent Bulgarian violinists Dina Schneidermann and Emil Kamilarov, which in 1987 turned into Bankya Collegium Musicum.
In 2003 the latter was extended to become the Sofia Sinfonietta, and in 2006 was granted the statute of an orchestra with is own metropolitan opera stage. This was an official recognition of its opera and ballet activities and the unique position it has as the only professional municipality orchestra of this type on the Bulgarian musical stage.
The Sofia Sinfonietta is made up of 38 instrumentalists. Its projects are extremely varied and ambitious. They include participation in popular concert cycles intended for the youth, pure entertainment programmes and open-air stage performances, where Sinfonietta plays in the capacity of an academic orchestra, operetta and musical performances, the presentation of film and theatre music, premiere works of contemporary Bulgarian and foreign composers, interactive projects suggesting improvisation ideas that can involve electronic devices, jazz and folk musicians alike.
Due to both home and foreign performances, the Sofia Sinfonietta enjoys enormous prestige and high professional reputation. It is a welcome guest orchestra at music festivals in this country and abroad, jubilee concerts and many charity events.
The Sofia Sinfonietta works in good partnership with other orchestras, soloists and conductors. In association with some educational institutions it completes projects aimed at making the young like classical music through knowledge provided at a series of concerts. One of its many initiatives is the "Young conductors, soloists and composers"concert cycle.
The orchestra performs in Europe, Asia and America, giving a number of concerts and making recordings for radio and TV programmes and record companies. The Sofia Sinfonietta is holder of the Crystal Lyre'01, an extraordinary edition of the Union of Bulgarian Musicians and Dancers' annual award, and of the Golden Lyre'07 for high achievements in the performing art and music.
From the year of 2000 Svilen Simeonov is the chief conductor of the Sofia Sinfonietta.
Germany, the Netherlands, Switzerland, Denmark, Austria, Greece, Japan, Italy, Spain, Belgium, Turkey, Serbia, among others.
Famous concert halls
Bulgaria Concert Hall, Sofia; Berlin Philharmonic Hall; the Musikverein Golden Hall, Vienna; Sava Centre, Belgrade; Victoria Hall, Geneva; Palau de la Musica, Barcelona; Auditorio Nacional de Musika, Madrid; Teatro Auditorio, Cuenca; Auditori, Girona, Concertgebouw, Brugge; Teatro Sociale di Mantova; Concert House, Seres and Concert House, Kavala.


The Perfect Blend invited the Australian and New Zealand bar community to enter their original creation that either reflected 'That Moment In time…' or 'Minimal Waste, Maximum Taste'.
Over the last few weeks, the judging team have been working overtime to narrow down over 400 entries received from bartenders from all corners of Australia and New Zealand. After a gruelling blind judging process, the following exceptional finalists have been selected from each state (in no particular order).
Kicking off in February 2019, The Perfect Blend will be touring this great country of ours, hosting five regional final events, then jetting off to New Zealand and hosting one there, to select a winner from the Apprentice and Professional categories, all of whom will be vying for their chance to win an ultimate fantasy-turned-reality, visiting Kentucky, the home of bourbon. Receiving a VIP tour of Jim Beam, and Maker's Mark distillery then heading to New York to attend Brooklyn Bar Convent, and visiting some of the very best bars in the world!
You're invited to attend the regional finals, more details to come.
Keep an eye on www.the-blend.com.au or www.the-blend.co.nz.


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Here, there, and everywhere
Art on the Emerald Necklace, an app for an airport, and a new five-star hotel
By Necee Regis Globe correspondent,August 7, 2018, 4:50 p.m.
An installation by Japanese artist Fujiko Nakaya was commissioned by the Emerald Necklace Conservancy.handout
Fog sculptures appear in Boston parks
If you see billowing fog on a sunny day along Boston's Emerald Necklace — don't be alarmed. The fog is part of an immersive public art installation by renowned Japanese artist Fujiko Nakaya, commissioned by the Emerald Necklace Conservancy to commemorate its 20th anniversary. "Fog x FLO: Fujiko Nakaya on the Emerald Necklace" features shape-shifting installations of pure water vapor at five locations: The Fens, Olmstead Park, Jamaica Pond, Arnold Arboretum, and Franklin Park. The installations will be activated from dawn to dusk, emitting fog that rhythmically appears and dissipates. Free to the public. Through Oct. 31. www.emeraldnecklace.org/20th/
Airport app debuts in Providence
Flying out of Providence just got easier with the new T.F. Green Airport App. Simply download the app to your Android or iOS device to access real flight time status and details of all arriving and departing flights, including gate, flight number, and to/from city. In addition, the app provides the hours of operation and information on all airport amenities, such as retail, dining, airlines, transportation, and rental car companies. Worried about where to park? It includes maps of the terminal and parking locations, and a parking tracker. Just scan the QR code and the app will find your vehicle's location when you return from your trip. Free. itunes.apple.com/us/app/t-f-green-airport/id1343851189?mt=8
Immersive art and tech fest
Binghamton, N.Y., may not be the first town that springs to mind when planning travels to cutting-edge arts festivals. However, the fourth annual LUMA Projection Arts Festival (Sept. 7-9) might expand your destination bucket list. Billed as the only visual arts festival in the United States focusing primarily on projection mapping, LUMA will transform the historic architecture in downtown Binghamton into an outdoor art gallery, making virtually anything a canvas using high-powered video projection, advanced 3-D computer animation, live music, moving lights, and more. Debuting as a one-day event in 2015 — to a crowd of 30,000 people — LUMA is expanding this year to a full weekend of events where artists from around the globe will unveil original immersive stories to crowds of art lovers and tech enthusiasts. lumafestival.com
Five-star hotel opens in Lake Como
Travelers longing for stunning views of Lake Como in the heart of the Italian city's majestic waterfront, Piazza Cavour, should look no further than the newly opened Vista Palazzo Lago di Como. Loll like royalty in one of 18 intimate lakeside rooms and suites in a completely renovated historic 19th-century Venetian-style palazzo. The five-star luxury hotel's rooftop boasts a library, outside Infinity Bar, and Sottovoce restaurant. The 18-month restoration project was spearheaded by Lario Hotels, a family-owned-and-operated group working in the area for more than 90 years. Off-site excursions include seaplane tours, spa treatments, Riva speedboat trips on the lake, and more. George Clooney sightings not included. Rates from $800 per night. vistalagodicomo.com/en
Scarf keeps you warm and hides valuables
Waypoint Goods, a boutique design studio for travel accessories, has debuted its newest Scandinavian-inspired scarf, The Oslo. This limited-edition infinity travel scarf not only keeps you warm on long flights, it also can securely conceal your phone, passport, wallet, keys, and other essentials safely in a hidden pocket. At 22 inches wide and 32 inches long, the scarf can loosely double wrap over your shoulders without being too tight. (It's recommended you place the pocket loop closest to your body, and use the other loop to drape over the top to hide the pocket and contents.) Made of a light, buttery-smooth polyester in ice-gray hues that are designed to mimic glaciers in a fjord. Scarves are also available in additional colors such as orchid, pumpkin, peacock, onyx, and hibiscus. $39.95. waypointgoods.com
DEET-free insect repellent
It's camping season, which means it's also bug season. To avoid itchy and sometimes painful bites from mosquitoes, ticks, flies, and chiggers, try Sawyer's new Picaridin Insect Repellant, a non-greasy, DEET-free formula that works up to 12 hours with a single application. Safe for use on the whole family, the product has a pleasant, low-citrus odor and won't damage plastics or synthetic coatings, meaning it won't adversely affect clothing, backpacks, watches, and sunglasses. Reviewed by Consumer Reports as safe and effective against the Yellow Fever Mosquito, which can transmit the Zika virus. Available at online retailers and a variety of stores as a lotion and spray in sizes ranging from 4-ounce bottles to one-quart and one-gallon-size dispensing jugs. $8-$30. sawyer.com/products/picaridin-insect-repellent .
Necee Regis


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About Cody Gredler
Cody knows cyber security. As CSID's Director of Marketing she has a keen understanding of what is going on both in the news and behind the scenes with the latest breaches, security threats and identity theft scams. Cody writes about the latest industry news, breaches, identity theft trends and often shares helpful security tips for both businesses and consumers.
Firewall Chats, Ep. 3: Simple Steps to Control Your Privacy
By Cody Gredler| 2015-11-06T14:23:01+00:00	November 10th, 2015|Firewall Chats|
Did you log in to Facebook recently to see post after post of "privacy notices?" Those ineffective status updates were spawned by rumors of how people assume online privacy operates. There are a lot of unnerving rumors and myths circulating on the best way to control your information. In this week's episode of Firewall Chats, we want to give you the facts and cut through the clutter.
We sat down with Katie Stephens from the University of Texas at Austin's Center for Identity to discuss how keep your information safeguarded, online and off. These habits don't require you to copy/paste any text into your status updates, or sacrifice hours of your day. We offer simple tips you can adopt, right now.
At the Center, Stephens is the education program manager and has a heavy hand in the UT's new master's program exploring identity management and security. Whether she's speaking at SXSW or helping craft a security-related video game for kids, Stephens is dedicated to informing people about privacy and security.
"The key point surrounding privacy is to know what you value and to educate yourself accordingly," she said. "The more you are willing to give up, with regards to your privacy, the more risk it opens you up to in terms of identity theft."
We need to be careful not to give away data that is unnecessary to share, Stephens explained. Filling out forms in an urgent care clinic? Don't feel the need to jot your Social Security number down.
"There's absolutely no reason they need that information," Stephens said. "You can leave it blank. If someone is insistent that they need your data, feel comfortable asking them why they need it, who has access it to it, and what precautions they will take to keep it safe."
We explore password health, children on social media, two-factor authentication, and the woes of identity theft with Stephens. To hear it all, listen on www.CSID.com/FirewallChats, and reach out to us on our Twitter and Facebook pages.
Save the Date: Our next episode will air on Tuesday, Nov. 24, and will feature CSID's own Adam Tyler and the Internet of Things.
Firewall Chats, Ep. 1: Social Media Matters
By Cody Gredler| 2015-10-13T09:35:03+00:00	October 13th, 2015|Firewall Chats|
Every day we click, like, post, tag, and swipe our lives across our favorite social media channels. The big players, like Facebook and Twitter, provide a life-sharing platform for billions and billions of users. But new channels are constantly competing for our attention and information.
Social media is a fantastic way to keep in touch with friends and family, promote your brand, and engage with celebrities. But there are dangers. Can a careless post lead to identity theft and fraud? Can it damage our privacy and reputation?
In our debut Firewall Chats podcast episode, we sat down with Chris Crosby, CEO of Inflection Point Global and managing director of SociallyActive.com, to discuss the above and share tips for staying safe on social sites.
Crosby's interest in social media was originally piqued after talking to friends and family members over their concerns with oversharing and cyberbullying. SociallyActive.com was created to be a resource for parents and families to chaperon their children online. Today, when you see services offering to help monitor your social media accounts, there's a good chance Crosby's software is powering that technology.
In today's episode Crosby reminds listeners that malicious minds will use any available information to their advantage.
One simple tip he offers listeners is to constantly edit your friends or followers list online. Should everyone see pictures of your kids or know where you live and work? Probably not. Be thoughtful with your connections and the information you're sharing.
"As a general rule, don't put anything online that you don't want to be seen by a billion people," Crosby says. "We don't know what this world is going to look like in five years and how this data is going to be used against us."
Our expert also goes on to discuss what you should never share online, how to be mindful when using the latest social network startups, and social media guidelines in the workplace.
Listen to the entire episode here: www.CSID.com/FirewallChats. And let us know your feedback on our Firewall Chats Twitter and Facebook.
Save the Date: Our next episode will air on Tuesday, Oct. 27, and feature Passcode Editor Michael Farrell on the latest cybersecurity trends.
By Cody Gredler| 2015-10-08T13:04:10+00:00	October 8th, 2015|Identity Protection, Industry News|
Industry News Recap: Connected Automobile Security
By Cody Gredler| 2015-09-30T09:53:05+00:00	September 30th, 2015|Industry News|
Two weeks ago we published a blog on security in the Internet of Things, part of which addressed recently uncovered vulnerabilities in automobile software. Since that time, concerns about cars and cybersecurity have remained in the news.
Hacked cars have made headlines before, but the issue was recently thrust back into the spotlight when white hat hackers Charlie Miller and Chris Valasek revealed a flaw in Chrysler's Uconnect system. The flaw allowed them to steer the vehicle, change its speed, disable the brakes and shut off the engine as it sped down a highway – all from the comfort of their couch. The two described the hack as "fairly easy" and "a weekend project."
An article in Wired covered this demonstration in detail and included the fear-inspiring conclusion that if this flaw is not fixed, "the result would be a wirelessly controlled automotive botnet encompassing hundreds of thousands of vehicles." Days later, Tesla Motors was featured in a similar story, a sign that the auto industry's connected cars are just as vulnerable to breach as our other Internet-connected devices.
There has been an evolving conversation around car security. As a result of Miller and Valasek's research, Chrysler issued a recall on more than a million vehicles. Meanwhile, according to Dark Reading, "the automobile industry at large began to address growing concerns over security weaknesses and vulnerabilities in new and evolving vehicle automation and networking features." Dark Reading also published a list of the world's most hackable cars, while security influencers began weighing in on the best ways to reduce car hacking threats.
As of September, the ongoing conversation has yielded some promising progress. Miller and Valasek announced that they are joining Uber's Advanced Technologies Center "to continue building out a world-class safety and security program at Uber." Intel, a company with plenty of clout in the auto industry, also recently published a "Best Practices" white paper, providing recommendations for automakers to outfit their vehicles for privacy and cybersecurity "in the era of the next-generation car."
The bonus of all the attention on car security? IoT security as a whole has been given more attention. Cars have not only pushed the Internet of Things forward, they have also reminded the world that as soon as anything is connected to the Internet, it becomes vulnerable to external parties.
Let us know what you think about security and the IoT on Twitter and Facebook. Be sure to check out our Tumblr for the latest industry news stories.
Industry News Recap: Zero-Day Exploits In The Limelight
By Cody Gredler| 2015-08-28T09:09:58+00:00	August 28th, 2015|Uncategorized|
A large amount of tech coverage has recently been devoted to zero-day vulnerabilities and attacks and the industry's widespread attempts to stop them.
The average Internet user has never encountered the term "zero-day attack" but it's one that we are going to hear more about in future. A zero-day attack occurs when a hacker exploits a software flaw that is unknown to the developer. Techopedia's Cory Janssen explains that this type of flaw is dangerous because "there is no known security fix [as] developers are unaware of the vulnerability or threat." These threats are called "zero-day" because they occur on or before the day that a vendor becomes aware of the bug.
Zero-day attacks have long been a concern for software developers, but they have only recently received widespread attention due to a string of high-profile events. In July, leaked documents revealed multiple zero-day exploits in Shockwave Flash. From The Post-Standard: "Once the details were made public, it left anyone using Flash open to cyberattacks." According to TechRepublic, the result was an eye-opening race, that revealed hackers were able to create malware to exploit the flaws a full day before developers could patch them. Since then, zero-day attacks against a wide variety of developers have dominated the headlines.
The insidious nature of zero-day attacks is alarming, but developers have systems in place to combat them. An exciting example: bug bounty programs, which give monetary rewards to members of the general public who discover software bugs. The tech industry has long used bug bounty programs to incentivize hackers to uncover and report security flaws. Infosecurity Magazine reports that United Airlines has also adopted this strategy and has already "awarded millions of frequent flier miles to white-hats."
For end-users, the best way to stay safe is to keep your software updated. Frequently check for updates to your browser and select "auto-update" wherever possible so that your device always has the latest security patches.
Let us know what you think on Twitter and Facebook. Be sure to check out our Tumblr for the latest industry news stories.
When Good Passwords Go Bad
By Cody Gredler| 2015-07-15T13:39:38+00:00	June 19th, 2015|Uncategorized|
Last month, password manager LastPass announced that their system had been hacked, exposing email addresses and encrypted master passwords for its users. Users were notified and prompted to change their master passwords.
Shortly after news broke of a flaw found in Apple's Keychain software that could let malicious software steal passwords across apps on your Mac. This flaw could result in exposed passwords to iCloud accounts, notes, photos, email accounts, banking, social media – you name it.
Both of these stories exemplify just how vulnerable our login systems are. As the LastPass hack shows – even when you are trying to do the right thing and safeguard your passwords, bad things can still happen.
One thing is certain: there is no surefire way to protect yourself against password loss due to hacks and malware unless you stay off the Internet altogether. However, there are some best practices you can implement to reduce the risk of a hack or breach.
Turn on Two-Factor Authentication
Two-factor authentication is typically comprised of two out of three identifiers:
Something you know, like a password
Something you have, like a token or code messaged to your phone
Something you are, like a fingerprint
Turning on two-factor authentication, especially on high-value accounts such as Amazon, Gmail and banking sites is essential. This will ensure that even if your password is lost, a hacker will need the second form of authentication to access to your account.
Practice safe password habits.
Do not reuse your password across multiple sites. Develop a passcode system that helps you remember the unique passwords you develop for each digital account you own. Passwords should be long, should not include any words found in a dictionary and should vary in character type (include special characters, capitalization and punctuation as password systems allow). Be sure to change passwords every six months and use two-factor authentication whenever possible.
Monitor your identity.
Use a service to monitor for suspicious activity of your personal information on the black market. Monitoring services will identify if your personal information, like your email address or password, is being shared on the dark web.
There are many interesting technologies and methods being explored to help secure our login systems. In the meantime, adhere to the above best practices to protect your accounts from unauthorized access. Were you impacted by the LastPass breach? Let us know how you responded on our Facebook or Twitter channel.
IRS Breach Shows What Happens to PII After it is Sold on the Black Market
By Cody Gredler| 2015-08-21T14:56:46+00:00	May 29th, 2015|Breach, Uncategorized|
The IRS experienced a breach that is changing the way businesses and consumers think about personal information. Reporters attribute the IRS breach to a crime syndicate in Russia, who used personal information obtained elsewhere to exploit the Get Transcript feature on the IRS website. They successfully exploited 104,000 individuals and filed nearly $50 million in fraudulent tax funds.
"This breach is not just about what this single group is going to do with the information, but what happens when this information gets sold on the black market," said cybersecurity author Peter Warren Singer to The New York Times. "It's rare for the actual attackers to turn the information directly into money. They're stealing the data and selling it off to other people."
As Singer points out, this breach demonstrates how cyber criminals can take stolen data and exploit an online system to pick the pockets of thousands of consumers. Major data breaches thus far have proven that cyber criminals have the know-how to exploit major retailers' security systems; this breach proves these criminals have more sophisticated schemes in their back pocket to cash in on the information they've stolen without having to find a vulnerability in an organization's security system.
This is costly to businesses as it highlights the limited control they have on security breaches. Maintaining a healthy, secure system helps businesses avoid data breaches, but cyber criminals are working around secure systems by taking advantage of customers' personal information. Gizmodo reporter Kate Knibbs calls this a "domino effect." The way it works is that cyber criminals hack into a business' system and steal customer data. Using that customer data, which includes name, address, email credentials and Social Security number, cyber criminals can log in to another business to make purchases or otherwise financially exploit a business. The result? A business is hijacked without its security system ever being hacked into. Cyber criminals are finding these workarounds, making their schemes more sophisticated and harder to identify from the outside.
So what exactly can we do to mitigate the risk of these types of breaches? Businesses and consumers must develop better habits and methods to protect their identities online. Password reuse is one of the most damaging habits of consumers. In fact, six out of 10 admit to reusing passwords across multiple sites. Convenience typically wins over security when it comes to interacting online. Businesses must innovate convenient options for consumers to better protect their digital identities. In the meantime, monitoring customer and employee credentials is a business' best bet for protecting their assets.
How does this breach affect the way businesses handle security? How can businesses and consumers prioritize security over convenience when it comes to protecting digital identities? Let us know what you think on Facebook, Twitter and LinkedIn.
Healthcare Data Breaches Have Grown 125 Percent in Five Years
There has been a noticeable uptick in the number of criminal attacks against healthcare facilities in the last five years. Ponemon recently released its Fifth Annual Benchmark Study on Privacy and Security of Healthcare Data, which shared a 125 percent increase in cyber attacks targeting healthcare data. The major shift in healthcare data breaches, according to the study, is that cyber criminals are intentionally targeting and exploiting healthcare data rather than accidentally coming across it during their exploits.
This shift in active pursuit of healthcare data shows that cyber criminals understand the value of healthcare data on the black market. Through our recent research, we have found that a medical identity, which includes a name, address, Social Security and health ID numbers, sells for $50 on the black market. A Social Security number sells for $1 and an active credit card sells for $3. A major contributing factor to the increase in healthcare breaches may also be due to the shift to digital healthcare records. Starting this year, healthcare facilities that do not show "meaningful use" of electronic health records are penalized, causing facilities to scramble to put records online.
The healthcare industry is a green market when it comes to following best security practices, which is why we've put together the top three ways healthcare organizations can keep their patient records secure:
Educate employees. The most important part of having a secure network is making sure your employees are compliant with security standards. Educate employees on how medical identity theft happens and what to do from a HIPAA standpoint to keep patient data safe.
Track, encrypt and password-protect mobile devices. Employees are connected via mobile devices more than ever, whether or not you have a formal BYOD policy. Be sure to create a policy that puts strict limits on how patient data can be viewed and shared on devices.
Create an identity crisis response plan. If your healthcare data is breached, make sure to have a crisis plan in place, including communication with patients. Maintain the plan by training staff on relevant policies and procedures.
Are you surprised by the value of medical identities on the black market? How else can the healthcare industry get up to speed on best security practices? Let us know what you think on Facebook, Twitter and LinkedIn.
Overview of 2015 Verizon Data Breach Investigations Report
By Cody Gredler| 2015-08-21T14:56:46+00:00	April 21st, 2015|Breach, Uncategorized|
Every year Verizon takes a thorough look at the global breach landscape in the company's annual Data Breach Investigations Report. This year's report offers a wealth of information on the threats, vulnerabilities and actions that plagued businesses in 2014. The report is long, but interesting and worth a read. To make it easier for you, we pulled what we feel are some of the most interesting findings below:
Compromised credentials remain the largest threat in 2014.
If this graph doesn't encourage you to pick a good password, we don't know what will. Credentials are like keys to your business. Passwords should never be reused and two-factor authentication should be used whenever possible.
Humans are the weakest link.
This year's survey found that 23 percent of phishing email recipients open phishing messages and 11 percent click on attachments. When you consider that one employee clicking on the wrong link can compromise your entire business' system, this is an alarming statistic. Verizon also conducted a test to see how quickly phishing links are clicked on. They found that nearly 50 percent of victims opened emails and clicked on phishing links within the first hour. Teaching employees about security best practices and how to identify suspicious links has never been more important.
According to the Verizon report, mobile malware is not a big deal… but it really is.
They found that only .03 percent of the tens of millions of mobile devices they looked at were infected with malicious malware. We don't agree with this finding. Mobile malware is a huge problem. Over a 12-month period Kaspersky Lab found more than 3.4 million malware detections on devices of 1 billion users. As mentioned above, employees are the weakest link. All it takes is one employee downloading a malware-infected app on his or her phone to put a business at risk.
If you are concerned about your business and the security risks outlined in Verizon's Data Breach Investigations Report, we recommend you check out our Resources Page. We have a lot of great information for businesses and consumers on how to mitigate the risk and impact of a breach.
As always, let us know what you think on Facebook, Twitter and LinkedIn.
Tips For Consumer Data Security After The Anthem Breach
By Cody Gredler| 2015-08-21T14:56:46+00:00	February 10th, 2015|Breach, Uncategorized|
As the dust settles after Anthem Healthcare Insurance announced last week that approximately 80 million of its customers may have had their personal information exposed in a data breach, consumers are once again left wondering how they can protect themselves and their data in the wake of another high profile hack.
Though it's being called the most massive breach yet, last week's Anthem's breach announcement comes not as a surprise, but rather a confirmation of the continuing expansion of online attacks and growing focus on medical ID theft that CSID has seen firsthand. Why? Medical IDs are an extremely lucrative source of income for identity thieves. According to the World Privacy Forum, a medical identity, including name, address, Social Security and health ID numbers – all information that was a part of Anthem's breach – can sell for around $50 on the online black market. By comparison, a Social Security number currently sells for $1 and an active credit card can sell for $3.
Taking into account this unfortunate emerging cyber-crime trend, all consumers – including those directly impacted by the Anthem breach—should consider the following best practices:
Use a monitoring service to keep an eye out for signs of medical identity theft, including medical bills in someone else's name or for medical services you did not receive.
Review your Explanation of Benefits (EOBs) to ensure the doctors listed and services provided are accurate. If you find an inaccuracy, contact your insurance provider right away.
Submit a benefits request to your insurance provider. The insurance provider will send a list of all benefits and services paid in your name. Review to ensure they are accurate. Some insurance providers have online systems with information.
Keep a close eye on your credit report for fraudulent activity, such as accounts you did not open. Under the law, you're entitled to a free credit report from each of the three credit bureaus every year. You can visit AnnualCreditReport.com to obtain the most recent version of your credit reports. If you find an error on your credit report or an account that you do not recognize, please file a dispute with the credit bureau (TransUnion, Equifax, Experian) who generated the report and contact that bureau for more information.
Consumers may also place a fraud alert on their credit file, which tells creditors to double-check whenever someone applies for credit in your name. For example, when a credit card issuer receives an application for a new card, a fraud alert tells the company to contact you and make sure you're really the one who submitted the application. You can place a fraud alert with each credit agency by following the links below:
Finally, Anthem has stated that they will be notifying affected customers and providing credit monitoring and identity protection services free of charge. Eligible individuals should definitely take advantage of this offering so that they can be closely aware of important changes to their personal records.
As always, let us know what you think on Twitter, Facebook or LinkedIn.