Enough by John C. Bogle

Is there no limit to what enough is in modern society? Capitalism is at play. Management earn obscene amounts of compensation. Greed can cause a system’s downfall. How long can materialism and greed last? I have been given enough, in more aspects than just financially. My great grandfather was incredibly thrifty. My family was fraught with financial difficulty. I had to work when I was young in order to feed the family. I learnt to accept responsibility when I was young. I did well in school and mum put in so much effort into investing in my education. My attitude in life has been influenced by my family. The first ‘diamond’ of my life was my admittance to the Blair Academy. My family was incredibly close-knitted and that helped a lot. Later, I got admitted to Princeton University on a full scholarship. Even then, I had to take up temporary jobs for me to get paid. However, my parent’s marriage fell apart after that. I discovered that the mutual fund was new at that time and wrote about it. Mr Morgan was the boss of Wellington Fund. When I was 35, he said I could take over the firm. After a disagreement with the other shareholders, I got fired. My business model was to manage our affairs internally and not require any external party to manage it. Vanguard would have to do everything in-house if it wanted to succeed. Before 1875, I founded the world’s first index mutual fund. The fund didn’t need to be managed as the returns would track a basket of stocks that were representative of an index. ‘If you build it, they will come.’ Thankfully, we got approval from the SEC too. A donated heart was one of my ‘diamonds’ too. This heart enabled me to live healthily. Be blessed by the number of diamonds you have. Humans are all too interested in short-term gains. Companies should recount their past values which enabled them to thrive. Virtue doesn’t come from money. It comes from doing good.

Some men wrest a living from nature and with their hands; this is called work. Some men wrest a living from those who wrest a living from nature and with their hands; this is called trade. Some men wrest a living from those who wrest a living from nature and with their hands; this is called finance. – Old Epigram from 19th Century Britain

There is a food chain and the investor is at the bottom of it. The financial system cannot be too costly. We are often trading paper and paying bankers too much. In addition, the financial system is fraught with complexity. Young graduates like to enter banking. We should strive to do good in our jobs. Never let money alter your conscience. Do not invest in products which require you to pay high management fees etc. Serving your client is the highest priority. The sub-prime crisis was an example of extreme greed. The finance sector takes up too much of the earnings of the S&P 500. Sometimes, the markets crash but those people in IB keep making money. The ex-CEOs of Citigroup and Merrill Lynch were paid very well just before the sub-prime crisis. They were not penalised heavily after that. However, bankers earned nothing as compared to the hedge fund managers. The hedge fund industry demands high management fees and investors can’t survive. The number of CFAs are increasing all the time. There is an inherent disconnect between cost and value in our financial system. Humans have abandoned the traditional standards of investing. The author looks up to people like Benjamin Graham and uses value-investing. Speculation is rife nowadays. The cumulative costs keep growing. Does the financial system create more value than cost? My fear is that the finance sector is getting too big and out of control. There needs to be a financial system reform. As public investors, we should demand more from our financial system.

The motivation of too many of those rushing into finance is more aligned with what they can get from society than what they can give back to it. – John C Bogle

Too Much Speculation, Not Enough Investment. Investing is about long-term ownership of the business. Speculation is just the opposite and is about short term gains. One of Keynes’ famous works is the ‘General Theory of Employment, Interest and Money’. In the long run, the stock price must be aligned with the business fundamentals. Speculators cannot capture the inherent value in a stock. Markets are volatile because of speculators. In the expectations market, prices are set based on the expectations of investors. These are not based on ‘real value’ per se. We live in an era of speculation. However, it is true that investors win and speculators lose in the long run. Stock markets have crashed, just like on Black Monday in 1987. Short term outcomes can’t be predicted accurately nowadays. There have been little cases of black swans in the long term market. The financial system is prone to innovation. Learn to emulate tortoises. Market timing is not sound. Market timing doesn’t work. It is difficult to make the right decision consistently on market timing. We need to improve the balance between entrepreneurial innovation and more traditional values. We cannot allow the whirlwind of speculation to continue unabated.

In investing, tortoises tend to win far more often than hares over the turns of the market cycle…Placing large bets on an unknown future is worse than gambling because at least in gambling you know the odds. Most of the decisions in life motivated by greed have unhappy outcomes. – Peter L. Bernstein

Too Much Complexity, Not Enough Simplicity. Simplicity has been the key to successful investing. Technology has complicated our lives. There are many middlemen in a CDO offering. Some banks are also not concerned with the creditworthiness of such offerings. The market has been flooded with interest rate swaps, credit default swaps etc. The value of the derivatives market is huge. ‘As long as the music is playing, you have to keep dancing.’ The Federal Government has also backed such offerings. It is better to buy an index fund as it has better returns. Innovations have hurt investors. The winners are usually the fund managers or distributors. Innovations like stock index fund, bond index fund have done investors well. ETFs are great. However, they are being traded too frequently, leading to speculation. Some ETFs also do not contain stocks that track the stock market index. There are many different types of funds nowadays, like market neutral, hedging, commodities, private equity etc. However, please examine the track record before buying. Commodities are purely speculative in nature. Fund expenses must be cut if investors are to gain. Fund failure rate is very high amongst idiosyncratic funds. Some funds are not concerned with shareholder performance. It is time to get down to basics. The author believes that the simple way is the best way. The mutual fund industry often fails to provide market-beating returns. The fund manager should serve investor’s interests.

Too Much Counting, Not Enough Trust. We often place too much emphasis on numbers and trust them. Then, we have optimistic views on the future because of them. Even numbers produced by the government can be questionable at times. We need to understand the sources of stock returns. Do not project future returns based on past historical rates. This causes the expected rate of return of investments to rise. The bubble of investor optimism will have to burst someday. It is smarter to set your expectations for future earnings on basis of current sources of returns. There is a bias towards optimism in the future. CEOs often paint too optimistic pictures for earnings and analysts tend to agree with them. The standard for analysts has changed from GAAP earnings to operating earnings. Pro-forma earnings also exclude all the one-time losses etc. Creative accounting is a big issue nowadays. Pension holders might lose money on their investments and this will have other repercussions as well. Businesses like to use M&A to create ‘value’. For each M&A deal, the bankers and lawyers earn huge sums of money. ‘Paper’ companies have acquired ‘rock’ companies that make. In Vanguard, we believe in organic growth, not forced growth. Nowadays, we do not know how to ask without any numbers and this is a scary fact. Trust is important.

The first step is to measure what can be easily measured. This is okay as far as it goes. The second step is to disregard that which cannot be measured, or give it an arbitrary quantitative value. This is artificial and misleading. The third step is to presume that what cannot be measured really is not very important. This is blindness. The fourth step is to say that what cannot be measured does not really exist. This is suicide. – Daniel Yankelovich

Modern capitalism has two parts: there’s business, and there’s finance. Business is renting you a car at the airport. Finance is something else. – Michael Kinsley

Too Much Business Conduct, Not Enough Professional Conduct. Professional associations are now run like business enterprises. However, professionals should be responsible and selfless in their service towards their clients. Times have changed nowadays. Professional conduct is less well regarded as in the past. Too many banks are seeking competitive advantages at the expense of their customers. The battle for professional independence is never won. Trust and be trusted. Capitalism has eroded as well and this is a big issue. Owners’ capitalism has been transformed to managers’ capitalism. Institutional investors are a big thing nowadays. Managers are not acting as they should for their principal. Beware of negligence and profusion have prevailed among corporate management. How much should the CEO be compensated? It is hard to determine how much value a CEO has added. Sometimes, their salary growth outstrips the corporate profit rate. There are accountability issues. Institutional money managers hold a lot of power. CEO stock based compensation should be based on intrinsic value and not actual stock price. The compensation consultant has also become more popular. Many CEOs are also paid according to how they fair in their peer group. A basic set of ethical principles is needed to guide the profession. Financial engineering is getting more and more popular. Capitalism must be fair, regulated and ethical.

Money management extracts value from the returns earned by our business enterprises, and in the process of maximizing its own commercial benefits, the industry seems to have lost its professional bearings. – John C Bogle

Too Much Salesmanship, Not Enough Stewardship. The industry is characterized by salesmanship too. Mutual fund size has grown by a tremendous rate recently. Fund investors start trading funds instead of simply holding them. The holding period for stocks has been cut from 6 years to 1 year. Fund costs have soared as well. The fund industry is more like a marketing industry now. Investment focus has been truncated. Some funds are only created because of the latest market fad. There is a need for reform. We need to cut down costs for investors. Serve the investor for a lifetime. There are too many choices of funds out there and this makes people confused. There is a need to have long term investment horizons. Serve the long term investors. We must all return to the index fund. Put fund investors in the driver’s seat. Shareholder education takes time. The industry should aim to be objective and unbiased. We need to have an industry that is of the shareholder, by the shareholder, and for the shareholder. We need a mutual fund industry with vision and values. We must build companies that stand for something. Stewardship will pay off. It is important to keep the faith every day.

Too Much Management, Not Enough Leadership. Our large corporations are over-managed but underled. Managing and leading are completely different. The leader is more original. The leader should be able to inspire. They should care about the deeper values of the organization. There are 10 rules for building a great organization. 1) Make caring the soul of the organization. 2) Forget about employees (call them crew members instead). 3) Set High Standards and Values – and Stick to Them. 4) Talk the Talk. Repeat the Values Endlessly. 5) Walk the Walk. Action Speaks Louder than Words. 6) Don’t over-manage. 7) Recognize Individual Achievement. 8) Loyalty is a Two-Way Street. 9) Lead and Manage for the Long-Term. 10) Press On, Regardless. A superior company thinks about its dream. It also applies unconventional thinking. We were based on value profit chain concepts. I built a company that would endure. Businesses should have purposes besides making money.

The institution must be the object of intense human care and cultivation. Even when it errs and stumbles, it must be cared for, and the burden must be borne by all who work for it, all who own it, all who are served by it, all who govern it. Every responsible person must care, and care deeply, about the institutions that touch his life. – Howard W. Johnson

Too Much Focus on Things, Not Enough Focus on Commitment. Where are the things by which one measures one’s life? Don’t let things measure the man instead. Life is never smooth and we might lose our wealth one day. However, your character is the one that will endure. Boldness and commitment is all important. Commit the most to make a second life. It is crucial to be committed to your family. Commitment to neighbours and the community is also important. We thrive as human beings and have faith in ourselves. Give credit to those who have helped you along the way. You didn’t succeed on your own. Be bold and summon your magic.

Too many 21st century values, not enough 18th century values. Do not move away from the truth. Facts are everywhere. The Age of Reason occurred in the 18th century. Many of the great leaders spoke about the period of Enlightenment. Benjamin Franklin was a great leader in the 18th century. Joseph Schumpeter also described what an entrepreneur ought to be. Entrepreneurs and capitalists are not the same. Have the will to conquer, and the joy of a good battle. Franklin invented many tools for the public’s benefit. There are other motives for business other than profit. A man should have a mind to improve, a heart to cultivate and a character to form. Keep striving to improve. Return stewardship to capitalism. Lead with purpose. Virtue is all important. Franklin listed 13 virtues. He started his day by asking ‘What good shall I do this day?’ and ended it with ‘What good have I done today?’ His energy and persistence helped him in his public life.

Knowledge is not the personal property of its discoverer, but the common property of all. As we enjoy great advantages from the inventions of others, we should be glad of an opportunity to serve others by any invention of ours, and this we should do freely and generously. – Benjamin Franklin

The real test for an honest and productive society is not what a society has achieved, but what it aims to achieve. It can put honest people on a pedestal even if they do not maximize their personal benefits and preferences…and discard and shun as models of failure dishonest people who achieve their highest ambitions by fraud and abuse of trust. – Tamar Frankel

Too Much ‘Success’, Not Enough Character. We often chase success but success continually eludes us. Is success all about achieving wealth and fame? Financial wealth is not a good measure of success. Fame is a flawed measure too. Fame is used for other purposes now. One can contribute to society in a great way but yet not be famous at all. Power should not be used capriciously and arbitrarily. Power should be used for a worthy cause. Have we been chasing the fake rabbit of success? Success isn’t about meeting other people’s expectations too. You should just base success on your own expectations and make the most of your talents. We should admire those people in professions where they can contribute to society, but not achieve any fame or recognition. Modern life has forced people to be competitive. Life demands much more of us nowadays. What are you competing for? Without character and courage, nothing else lasts. To hone character, one must undergo tribulations etc. Be yourself and strive to be better. With age, you should better understand where the rabbits are. Challenge yourself and strive to be better. Chase the real rabbits of your life.

Success can be measured in our contributions to building a better world, in helping our fellow man, and in raising children who themselves become loving human beings and good citizens. Success, in short, can be measured not in what we attain for ourselves, but in what we contribute to our society. – John C Bogle

I long to accomplish a great and noble task, but it is my chief duty to accomplish humble tasks as though they were great and noble. The world is moved along, not only by the mighty shoves of its heroes, but also by the aggregate of the tiny pushes of each honest worker. – Helen Keller

Highly educated young people are tutored, taught, and monitored in all aspects of their lives, except the most important, which is character-building. But without character and courage, nothing else lasts. – David Brooks

What’s Enough? What is the relationship between happiness and success? Success is not the key to happiness, happiness is the key to success. Humans are resilient. Money only provides a transitory form of happiness. Autonomy, social interaction and competence are all important. How much money do you need? I want to give something back to the less fortunate. For example, give back to your alma mater. I also offered scholarships to the Blair students. It has been a thrilling ride indeed. I was born to save rather than spend. Our shareholders also have received superior returns. I do not like extravagance. My retirement plan is the largest in the family balance sheet. Saving early and regularly is the key for wealth accumulation. Postpone your first payment for Social Security. Stick with low-fund fees. There are still many people living in poverty in the US. The income disparity is growing. You must remember that you are fortunate but not all fellow Americans are enjoying it. The domination of the US will not happen forever.

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IIA Magazine Aug 2016 issue

Cybersecurity is an area where it is lacking among major companies. Companies need to step up to beef this area up. Productivity is a main concern for employees. Ethical pressure is greater during organizational change. The COSO framework is expected to be updated in 2017. It will be updated to include the latest risk management thinking and principles. IoT is going to have a big impact moving forward and there needs to be a comprehensive approach to go about doing it.

Analytics-Driven Audits. Before tackling data analytics, internal auditors need to understand the types of data, how it is stored, and how to apply it. Automated audits are the new trend now. It can be applied to many aspects of the audit too. Understand what are qualitative and quantitative data and their measurements. Understand how data is stored and the various formats. Any outliers should be thoroughly investigated. There are 4 types: descriptive, diagnostic, predictive and prescriptive. Learn to gain insight into the business.

The Mind of a Credit Card Hacker. Smart hackers usually lay low. They can steal credit card details and then sell them. Hackers use a vector to steal data, such as phishing. They also need to collect the data quickly and then cover their tracks. The hacker will verify that the cards are valid and start off with transactions of small amounts. If they go undetected, they may get bolder. IA can encourage the company to encrypt the credit card information and monitor access to networks. Access control needs to be checked too. IA is the third line of defence.

Make the Most of Assurance. Assurance maps can enable internal audit to team with other assurance providers to visually convey how risk is managed. IA can work with other assurance providers and depict the results in an assurance map. The map allows one to spot gaps in risk coverage or any overlaps. Assurance maps can enhance and give value to AC too. The map should not be too complex.

Tough Consequences. Adequate contract administration can save organizations a tremendous amount of grief and money. It is important to monitor vendor contracts properly. The contract administrator should be the liaison party and highlight any non-compliance. There needs to be adequate financial controls over the cash receipts and revenue cycles at the vendor’s end.

A World of Connections. The IoT requires IA to confront risks that are not so neatly contained. The impact of this is growing. IoT is about interacting with the environment for business benefit. Emerging risks from IoT must be monitored closely. There are many benefits from using IoT devices too. Management needs to be aware of the risks too. There needs to be a deployment strategy too. A policy needs to be drawn up.

Cyber Resilience. IA should work collaboratively and proactively to address breaches and build resistance to future attacks. Banks need to protect the SWIFT codes. A cyber breach might definitely occur in future. There is increasing use of software to pick up behavioural anomalies. There needs to be both a protective and detective strategy. A response plan is important. Customer data should be given top priority in a cyberattack response. IA needs to understand IT from a technical and controls perspective.

Auditing the Cloud. IA should delve into the complexities and unique risks of moving to a cloud platform. Many companies are making use of the cloud as compared to traditional data center infrastructure. Less manpower is needed to maintain a cloud as well. Servers can be added on demand too. IA needs to verify the security, reliability and availability of the data. No two clouds are the same but the common ones are infrastructure as a service, software as a service, platform as a service etc. It is good to obtain the SSAE 16 report on the vendor as evidence of its controls. It is difficult to track cloud deployment. Cloud assets can keep varying as well and it is difficult to monitor. The data is now stored on the same physical equipment as other organizations and there is a risk of leakage. A security program is still a must. Penetration testing needs to be done periodically to prevent hackers. Relying on the SSAE 16 report is useful, but not sufficient.

Trust but Verify. Control self-assessments can increase audit efficiency and spread control awareness throughout the organization. This is for process owners to self-evaluate the effectiveness of controls. This could be done via workshops/ questionaires etc. Sometimes, it is not possible to deploy a team to perform audits in every area. When CSAs are used, IA needs to explain the rationale to the management. The process owners must be identified clearly. IA needs to independently verify some of their responses. For example, only key controls or only those rated as ineffective may be selected for further testing. Continuous support is a must and training must be provided. The right level of project sponsorship is important too. It can be implemented gradually. CSA enables IA to allocate resources to focus on areas with significant control weaknesses.

Audit Never Sleeps. IA must keep innovating and improving and focus on the organizations that we love. We need to constantly do the right thing and hone our communication skills. Effective communication is the key and getting to know the auditees well is the key. Listening well is crucial too. Nowadays, IA should adopt an integrated mindset. We need to broaden our IT knowledge to meet stakeholder expectations. Applying soft skills are important too. Our work must be guarded by ethics and transparency. We need our approach our work with a strategic focus too. There is also a need to focus on our future.

Optimizing IA. IA are being continually challenged to improve their effectiveness to better meet growing expectations and workloads. IA staffing levels remain relatively constant. IA must be aware of strategy and ensure that procedures align with that strategy. IA should understand what the external risks are. As for operational efficiency, IA should offer cost effective and sustainable solutions. Quality assurance is important to ensure quality and compliance with regulations. IA should identify cost savings, understand business goals, increase collaboration, optimize technologies and strive for continuous monitoring.

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IIA Magazine Oct 2016 issue

There needs to be reporting beyond just financial type. There is a need for a risk-based approach and to look at the major objectives of the organization. It is important to have a policy for conflict of interests. Do not simply give customers what we think we can deliver, but ask them what they need. Company culture is crucial in the employee rating of their CEO. Those CEOs who are the founders, have lower pay, have good profitability usually have better ratings. Some FIs are concerned by the staffing of their AML team and the adjustment needed for new regulations. The US is the most cyber aware country. However, there are some countries which are lacking in cybersecurity preparedness and that is a concern. Brexit might have the effect of changing the impact of globalization over time.

The Art of Recommending. Internal Auditors walk a fine line when presenting recommendations to management. IA needs to show how the recommendations fix gaps and mitigate risk. There needs to be a cost vs benefit analysis too. Recommendation can either be to address a gap or as a suggestion for improvement. There needs to be both internal and external sources of information. One needs to spend time documentation down potential recommendations. It should address the root cause. Avoid addressing a person. Indicate a repeat finding. Explain how the recommendation will mitigate the risk. For areas for improvement, list them separately from the gaps. Some external info could be ‘IIA research materials, professional literature, networking, procedures from other organizations.’

‘It is a good practice to jot down recommendation ideas as soon as they come to mind, even though they may not find a place in the final report. Even if internal audit testing does not result does not result in a finding, the auditor may still recommend improvements to the current process.’

‘It is internal audit’s prerogative to provide recommendations, regardless of whether management agrees with them. Persuasive and open-minded discussions with process owners are important to achieving agreeable and implementable recommendations.’

Big Data and IA. Today’s data analytics expand auditors’ ability to tap into all types of info generated by the organization. Auditors can mine data and analyse them. IA can use statistics or visualization tools to help them too. One can test all the transactions now. There is also a great variety of data available. Velocity of data now makes it possible for IA to perform continuous auditing. Learn to understand the data and acquire the analytics tools. It is also important to develop a road map too. Big data can be harnessed in a meaningful way.

Is IA in your Audit Universe? IA should seek to enhance and protect organizational value. IA should be audited via a QAR (quality assurance review). One can evaluate the IA’s conformance to the standards, code of ethics, efficiency and effectiveness of the IA activity. It must be conducted by someone who is objective in nature. An external assessment needs to be conducted once every 5 years.

Blurred Lines. Internal auditors need to have the skills and perspective to deal with frauds that don’t match the standard villain story. One needs to look for the motivations and benefits. IA needs a clear perspective on how to approach fraud. One needs to analyse why did the fraudster want to commit the crime.

Taking the Lead on Nonfinancial Reporting. Internal audit is well-positioned to examine how its organization reports on nonfinancial issues. European companies now need to disclose in the annual report how they are discharging social, environmental and ethical issues. Non-financial info is important to gauge the society’s impact. Management needs to be concerned over non-financial reporting. Sustainability reports should disclose how the company performs in some specific areas. You need good non-financial reporting systems. In the US, sustainability reporting is not mandated and not practiced by many companies. Non-financial data are often over-looked by IA. IA needs to have the right process competencies for effective non-financial reporting. There needs to decisions on materiality over nonfinancial reporting. Strong communication skills are the key. It is possible to create a multidisciplinary team that can provide combined assurance. IA needs to engage the first line of defense first.

Audit processes take flight. The updated COSO Internal Control-Integrated Framework is at the heart of Boeing’s internal audit work. The new COSO framework has 17 guiding principles across the 5 control components. The principles-based approach is being used. It is important to give weight to all of the COSO components. Keep the focus on inherent risks. Every audit requires a detailed process flowchart.

Privacy in the workplace. Organizations must find ways to accommodate employees’ personal technology use while also meeting regulatory and other requirements. Digital technology has changed a lot of things. Privacy issues are becoming more important. Employees tend to violate privacy risks more. IA should be able to understand where the risks lie. A lot of data is being collected and analysed. Some form of employee monitoring is necessary, but not excessively. Who is responsible for lost data on a cloud? In the US and Europe, there are a lot of acts that company must comply in relation to global privacy laws and regulations. In Europe or Japan, the privacy laws are more absolute. There needs to be a strong governance/ privacy framework in place. A risk assessment should be performed on a frequent basis to evaluate the impact of changes to regulation. If an organization expands, IA should make sure controls are in place to manage privacy. Training and awareness needs to be made at every level. Trust must be built between employers and employees.

A Unified Approach to Compliance. Failure to comply with regulation could lead to fines and reputational damage. There needs to be a co-ordination between IA and compliance function. IA needs to understand the business goals and how the compliance team plans to assist the business in achieving them. One can examine from both a macro and a micro level. The IA charter should clearly document the role of the IA team in compliance. We should focus on the foundations of the assessment. IA should sound out levels of residual risks that are greater than risk appetite. How does the organization ensure completeness in the assessment? IA can rely on the compliance team to update them on the regulations. Key compliance decisions must be documented. IA and compliance teams should meet to discuss once in a while. IA can share audit reports with the compliance teams. IA can leverage and use the compliance risk assessment. However, IA should check whether it is complete. To achieve the IA mission, IA needs to include compliance too.

The Power of Rhetoric. Understanding the powers of persuasion and applying key rhetorical skills can improve the work of any IA. IA needs to possess rhetoric to persuade the auditee to accept the recommendations. The key elements are speech, audience, text. The author is usually the engagement lead. All members and groups of audience needs to be considered. The audit report is the written text. The team selected must be capable and know how to perform the engagement. Logos appears to one’s logic and the supporting documents. Pathos focuses on the audience’s irrational modes of response and is an appeal to emotions. Design of slides must be beautiful and also simple to read. Word selection is important and IA should give a balanced view.

The Red Flags of Fraud. Internal auditors’ knowledge of the business makes them ideal candidates to detect unethical behaviour. Fraud affects the bottom line and active measures to detect it are better. Red flags are signs that it could occur. IA can do a red flag analysis. There are different types of fraud, financial statement fraud, employee fraud, tech fraud etc. For FS fraud, personal enrichment is common. IA can scan the GL to look out for unusual trends etc. Analytical procedures can be used too. Employee theft of cash is possible. Other types of fraud are employee expense reimbursement fraud, payroll fraud and kickback scheme. Most frauds usually happen only after a year of service, because the employee needs to learn of the internal controls first. The chance of fraud is greater if the person is in financial difficulty. Data analytics can help to review red flags. Anti-fraud training must be conducted. Early detection is the key as if the fraud persists, the loss will be even greater.

‘Ethos is established when the audience determines that the author is qualified, trustworthy, and believable.’

Anticipating Information Security Regulation. As threats and data breaches become more common, so will regulatory oversight. Data breaches are more common and the risk to consumers are growing. One needs to establish a security risk assessment process. IA can adopt ISO 270001 to enhance their information security program. An employee security awareness program is very important too. IA needs to validate and assess the control environment too.

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Utopia for Realists by Rutger Bregman (Part 2)

A Fifteen Hour Workweek. Leisure time is scarce in modern society, but why is that so? By 2030, Keynes predicted that mankind would have trouble filling up their spare time. Earlier, Benjamin Franklin predicted that we would work 4 hour days only. Employers were not keen to let their employees work for so short hours everyday. Henry Ford discovered that a shorter work week made employees more productive. In 1938, legislation to protect the 5 day workweek was passed. After WWII, leisure time continued to rise. It was predicted that machines would do all the work in future. Working would only be reserved for the elite. The spread of boredom might be a concern for Mankind. There was a concern that too much free time would bring about boredom and idleness. Are scientists prediction of what life would be like in 2062 come true? The irony is that in modern society, the working week is actually growing. It has to do with the feminist revolution. Parenting is a lot more time-intensive nowadays. The smartphone might even lead to the ordinary worker working even longer hours. Consumption has increased a lot more recently. Would our standard of living decrease if we work less? Productivity and long work hours do not go hand in hand. Even in the modern society, 40 hour workweeks might be too much. Research has shown that 6 hours per day is optimum. Working less solves the problem of stress and leads to increased levels of happiness. It might solve climate change and reduce the number of accidents too. It might address unemployment too. Paternity leave is extremely important nowadays. It might address the issue of aging population too. Nowadays, people tend to show off if they are busy. There is not enough paid work to go around. Is the strategy of shorter working hours what we all want? The answer is yes. The countries with the shortest workweeks have the largest number of volunteers and social capital. We all are capable of handling the good life.

It’s quite simple, really. Time is money. Economic growth can yield either more leisure or more consumption. – Rutger Bregman

It is worth noting, however, that the line between work and leisure has blurred in recent times. Work is now often perceived as a kind of hobby, or even as the very crux of our identity. – Rutger Bregman

There’s not a person on Earth who on their deathbed thinks, “Had I only put in a few more hours at the office or sat in front of the tube some more.” – Rutger Bregman

Work is the refuge of people who have nothing better to do. – Oscar Wilde

Why It Doesn’t Pay to Be a Banker. The trash workers went on strike. The streets were extremely stinky. It actually pays to strike. These are essential services which actually do much good to others. However, wall street traders don’t do much. These are the jobs that simply shift money around. Now, in modern society, more people are able to earn without contributing anything tangible to society. Ireland did okay without the bankers for 6 months. It did not have a debilitating impact on daily life. Creating complex financial products actually destroys wealth. Why are we working harder than ever before? Many people admit that they are doing bullshit jobs. Banking is very exclusive to the elite few. Some people feel that their job had no meaning and significance. This is a problem with the capitalist society. The modern society is concerned with nothing but profit. Now, it is all about milking the cash without innovation. Just imagine how society will be if we just focused on creating things of value. It does not mean that you earn much, it automatically means you are contributing to society. In modern times, more people have sought to move to banking. We need to tax higher earners even more. A teacher has a direct hand in shaping the future. We need to intervene at the classroom level. Which knowledge and skills do we want in our children in 2030? A shorter work week allows us to spend more time on ourselves. Society determines what has real value. After the strike, the garage collectors had a significant pay increase.

Making money without creating anything of value is anything but easy. It takes talent, ambition, and brains. And the banking world is brimming with clever minds. – Rutger Bregman

The goal of the future is full unemployment, so we can play. – Arthur C. Clarke

Race Against the Machine. Machines help to eliminate certain jobs. Robots should help to reduce the average number of working hours. People are educated, but your skills might be superfluous after a while. Moore realized the power of computers and that it would soon surpass humans. Machines help in the transportation sector, such as container shipping. The ratio of capital to labour is not constant. Technology has been advancing at an astounding rate. Who’s profiting from this? There are fewer winners as time passes. Inequality has been increasing in developed countries. Many jobs are at risk to be overtaken by machines. It will come in the next 20 years. That are some that argue that automation will create new jobs. Productivity is at record levels in the 2000s. Even the most modern of computers can defeat chess masters. Robots can hone our mental capacities. Automated cars might take over drivers on the roads soon. By 2029, it is predicted that computers will be as intelligent as people. There is no limit for machine computing power. In 1811, some men declared a war on machines, but the machines won. The whole point of robots is for them to do tasks that humans would rather not do themselves. How can we compete against the machine? It seems like there is limited hope and that inequality will continue to increase. Should we continue to focus on education? However, the low-hanging fruit has already been plucked. Maybe a solution is to bring a hammer. Humans still have the ultimate say as to how to shape our destiny. We need a massive redistribution of income.

The reality is that it takes fewer and fewer people to create a successful business, meaning that when a business succeeds, fewer and fewer people benefit. – Rutger Bregman

The factory of the future will have only two employees, a man and a dog. The man will be there to feed the dog. The dog will be there to keep the man from touching the equipment. – Popular joke among economists

Beyond the Gates of the Land of Plenty. Should we try to give everyone on Earth the joys of the Land of Plenty? We spend a lot of money on developmental aid. Nobody knows whether it has helped much or not. Sometimes, the usage can be different than what was intended. Is the remedy worse than the disease? The first form of aid happened in 1998. Studies have shown that providing free textbooks does not improve scores. We all should aim to take the guess work out of policy making. Is it better to give out free mosquito nets or to sell them? Even microcredit has not been proven effective at combating poverty and illness. Handing out cash is better. However, not everything is measurable. There are the 3 Is of development and they are ideology, ignorance and inertia. There needs to be strong measures against tax evasion especially in poor countries. Opening the gates is one way to give the poor a chance. After the war, countries protected their borders tightly. The world is wide open except for people. Opening borders to labour would boost wealth tremendously. The inhabitants of the Land of Plenty are filthy rich. We turn away refugees way too easily. Americans earn a lot more than their South American counterparts. Opening the borders is one of our best strategies against poverty. However, people often lament that by doing so, you will bringing terrorists in. The risk of terrorism is low. Immigration actually reduces in a decline of terrorist activities. They are not all criminals. There is practically zero correlation between ethnic background and crime. They will not undermine social cohesion too. Diversity cannot be used to blame cohesion in society. There is an argument that foreigner influx can help create more employment opportunities. Will cheap immigrant labor force wages down? A think tank has showed that immigration has virtually no effect on wages. It is not true that foreigners are too lazy to work. Immigrants actually take less advantage of public assistance. Governments can set criteria for them and make it harder for them to get PR. One way is to create language and culture tests. Open borders actually promote immigrant return. Opening the borders is not something we can do overnight. Just cracking the door around migration will help us tremendously.

How Ideas Change the World. There were some people who believed that the world would end on Dec 21, 1954. This was a prophecy that failed. Humans tend to suffer from cognitive dissonance, where people recalibrate reality rather than amend their worldview. Humans tend to stubborn. The more educated you are, the more unwilling you will be to change. Can new ideas like a universal basic income truly change the world? However, people’s ideas can indeed change over time. Sometimes, a single opposing voice can make all the difference. Had we invested too much in our old convictions? There is a lot we can learn from Friedrich Hayek and Milton Friedman. There are lessons we can learn from Neoliberalism. The world is getting richer and safer. It is okay to dream and keep plugging away.

People are most likely to change their opinions if you confront them with new and disagreeable facts as directly as possible. – Rutger Bregman

Utopia is on the horizon. I move two steps closer; it moves two steps further away. I walk another ten steps and the horizon runs ten steps further away. As much as I may walk, I’ll never reach it. So what’s the point of utopia? The point is this: to keep walking. – Eduardo Galeano

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Utopia for Realists by Rutger Bregman (Part 1)

How We can Build The Ideal World

‘A map of the world that does not include Utopia is not worth even glancing at, for it leaves out the one country at which Humanity is always landing. And when Humanity lands there, it looks out, and, seeing a better country, sets sail. Progress is the realization of Utopias.’ Oscar Wilde

The Return of Utopia. In the past, the world was much worse than what it was today. Poverty rates have fallen and life expectancy has increased. The last 2 centuries have seen explosive growth, like nothing mankind has ever experienced. People are 250 times richer as compared to the Industrial Revolution. People used to dream of a brighter future. Modern world suffers from problems like obesity, pollution etc. Modern medicine has allowed those who have suffered to live again. Driverless cars are on our roads. Internet access and smartphones are getting more widespread. Vaccines are useful to prevent diseases and pre-mature death. In terms of literacy, humans are at our all-time high. Although everything seems good, we may lack a purpose in life. We live in a capitalist and consumer driven society. How can we improve our current state? A common utopia is one of blueprints, where dissension is not tolerated. Transgressions are not allowed and will be punished. Why are we working long hours than before even though we are richer now. To many, utopias turn out into dystopias and nightmares. We crave freedom, but it some ways, it is an empty freedom. We spend too much on health care. The advertisers and mass media benefit from over consumption. This is the dystopia we are living in. We are pampered too much. We believed in big dreams in the past but we know that reality is very different. We are becoming more anxious over time. We are becoming more and more alike. There are other ways to progress other than via capitalism. Our utopia will start small and grow from there. Even though things are well, we need to constantly improve.

And the ad industry encourages us to spend money we don’t have on junk we don’t need in order to impress people we can’t stand. – Rutger Bregman

If success is a choice, then so is failure. Lost your job? You should have worked harder. Sick? You must not be leading a healthy lifestyle. Unhappy? Take a pill. – Rutger Bregman

Why We Should Give Free Money to Everyone. Feeding the homeless might be cheaper than locking them in jail or providing social services. One other way is to give them money. This is ironic, but it might work. How they spend it is up to them. The fact is that most of them were actually prudent in their spending. Some even used the money for personal growth. Giving money to them might be the most efficient way to help them. Free money doesn’t make people lazy. This has been proved by different studies. This has been proved in Namibia and Malawi. This might be superior to spending money on food etc. You have the freedom to buy want you need. This was already mentioned in Thomas More in his book in 1516. The dream is for all to have a universal basic income for everyone. Canada experimented with this idea in the 1970s. Mincome, a city in Canada, worked well under this model. There is a fear that people would be lazy if they didn’t work. There is little evidence that people would be lazy if they had a basic sum of money each month. President Nixon pushed for it in the past, but it often got rejected by the Senate. Many years back, democracy seemed a utopia, but it has worked. The benefit of giving people a basic income is that the poor can take on jobs which can give them growth. This should be the aim of capitalism.

Poverty is fundamentally about a lack of cash. It’s not about stupidity. You can’t pull yourself up by your bootstraps if you have no boots. – Joseph Hanlon

There is overwhelming evidence to suggest that the vast majority of people actually want to work, whether they need to or not. In fact, not having a job makes us deeply unhappy. – Rutger Bregman

So we have inspectors of inspectors and people making instruments for inspectors to inspect inspectors. The true business of people should be to go back to school and think about whatever it was they were thinking about before somebody came along and told them they had to earn a living. – Richard Buckminster Fuller

The End of Poverty. A new casino opened in 1997. It was Harrah’s Cherokee. It was run by Cherokee Indians. Organized crime did not increase. Those kids who grew up in poverty tended to have behavioral problems. Which was the cause, and which was the effect? Costello’s subjects who were lifted out of poverty had much lesser behavioral problems. Money from the casino earnings were given to needy families. The tribe ended up thriving after the casino earnings. Genes can’t be undone. Poverty can. Why do the poor tend to make dumb decisions? Poverty is something the individual has to overcome on their own. In economics, always everything revolves around scarcity. Poor people find food scarce, so they need to find an incredible way to make ends meet and that is a good thing. You can’t take a break from poverty. It’s all about the context. You can’t take a break from poverty, unlike a situation where you are busy at work. We all need to increase our gross domestic mental bandwidth. Getting out of poverty is more important than education. One solution is to give needy students a hand with financial aid paperwork. Does money enable you to be happy and healthy? Inequality is a big issue in modern society. Relative poverty is very important because like to compare themselves with others. Social mobility goes up when inequality goes up. Even rich people might not feel good if the inequality in their country is too high. Providing free apartments are also useful, as it helps to get homeless people off the streets. Homelessness can certainly be solved. We need to address the root cause, not the symptom.

Scarcity consumes you. You’re less able to focus on other things that are also important to you. – Eldar Shafir

The effect of poverty lowers your IQ by around 13 or 14 points. That’s comparable to losing a night’s sleep or the long term effects of alcohol. – Eldar Shafir

If you’d like to have more money, time, friends, or food, you’re more likely to experience a sense of scarcity. And the things you want are determined to a large extent by what people around you have. – Rutger Bregman

Poverty is a great enemy to human happiness; it certainly destroys liberty, and it makes some virtues impracticable, and others extremely difficult. – Samuel Johnson

The Bizarre Tale of President Nixon and His Basic Income Bill. Historians have more to give us. We should look and learn from history as much as possible. We shall look at Richard Nixon. He was forced to resign after the Watergate scandal in 1974. There were many who opposed his plan of giving free money to everyone. Anderson managed to change Nixon’s mind. The Speenhamland system failed badly in the 19th century England. Why did the President switch his mind? However, his message of wanting to fight laziness among the poor caused people to turn against the idea of basic income. Speenhamland appeared to be successful initially. In the fact, people were convinced that population growth will exceed food production. However, it was a disaster because of a few reasons. Marx believed that a revolution was needed to bring people out of poverty, not a basic income. Modern historians have realized that the results from Speenhamland might not be reliably measured. The consensus that the poor were becoming more lazy might be untrue. The Royal Commission Report changed Nixon’s decision. The truth of population growth indefinitely might not hold true. In 1834, the Speenhamland system was dismantled. The idea of a self-regulating market that will liberate the poor was still a dream. There are some scholars who believe that Speenhamland was a success. Things could have been handled so much better. The idea of a welfare state was hit badly as a result of Speenhamland. People who are poor only thing about the here and now and not the future.

The gross national product…measures everything…except that which makes life worthwhile. – Robert F. Kennedy

New Figures for a New Era. The Japan earthquake on Mar 11, 2011 wrecked havoc on the Japanese economy. However, the economy recovered miraculously fast. It had a silver lining for GDP. Rebuilding has a huge impetus for the government. However, we shouldn’t welcome these disasters. GDP does not measure the intangible benefits to society. It does not measure things like community service, clean air etc. Also, things like domestic workers are not measured in the GDP. Denmark has tried to quantify the value of breastfeeding in its GDP. GDP does not measure advances in technology. The higher the social problems, the more it will contribute to GDP. In the past, banks took up a huge slice of GDP due to their risk taking culture. Are we placing too much emphasis on GDP? Almost all politicians believe that growth is good for employment and the economy. The idea of GDP was already mooted in the 1800s. Adam Smith believed that those who worked in services industry produced nothing at all. Alfred Marshall realized that it was not so much the nature of products that mattered, but the price. However, accurate calculations on GDP only existed in the 1900s. It was essentially invented by a Russian professor named Simon Kuznets in 1932. It would be an excellent yardstick for any country. The GDP could give an overall picture of the economy. Even today, many professors do not understand how GDP works. GDP measures all the activity within its borders (including by foreign enterprises). GDP was very useful after a war. There are many other useful statistics that can serve us better than GDP. Today, the economy is so much more complicated than just some production numbers. In Bhutan, a gross national happiness index was suggested. Two possible candidates might be the Genuine Progress Indicator (GPI) or the Index of Sustainable Economic Welfare (ISEW). The wealthier a country is, the more difficult it is to measure that wealth. In Europe, the governments subsidize domains where productivity can’t be leveraged. The cost of health care is bound to increase. We will need indications to track life, eg. Community service, social cohesion, jobs, knowledge etc. We need to rethink how we relook at growth?

Productivity is for robots. Humans excel at wasting time, experimenting, playing, creating, and exploring. – Kevin Kelly

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IIA Magazine Dec 2016

One potential failure of ERM is that of green-washing, this is when crucial risks are pushed down into the larger collection of more trivial risks. Cybercrime is a current buzz risk. The first line of defence needs to take on better accountability for sound risk management and control.

Investors are pushing for more accountability and transparency behind decision-making. Shareholder activism is playing a big role nowadays.

The EU has released new general data protection regulation (GDPR) which intends to strengthen and unify data protection for individuals within the EU. However, most organizations say that they are not well prepared. Organizations should start preparing for this as it will kick off in May 2018.

Client Feedback. Audit performance can be fine-tuned with the right input from stakeholders. Feedback should aid audit performance. Feedback should be to the point and be specific and timely in order to be effective. Useful feedback can increase audit effectiveness. Feedback can be provided during the opening meeting, during the audit or during the closing meeting. The client should take the opportunity to clarify any concerns that they may have. During the closing meeting, IA needs to present the supporting documents and records. A post-audit questionnaire can be sent to the client after the audit.

Must-have Controls for Small Medium Enterprises. 5 controls can help SMEs protect themselves against cyber breaches. Sometimes, they do not have sufficient resources to deal with threats. Firstly, scan the network quarterly and identify vulnerabilities. Train employees on IT security. Protect sensitive information by inventorizing sensitive business processes and reviewing access to information. Learn to segment the network. Deploy extra protection for endpoints and encrypt the data. Learn to monitor the network, manage service providers, protect smart devices and monitor activity related to sensitive information.

A Holistic Approach to IT Risk. The COBIT framework can help auditors understand and address their organization’s technology risks. IT can be very complex but IA needs to evaluate the full range of IT risks. COBIT is valuable for the whole process, from end to end. The 5 key principles are meeting stakeholder needs, covering the enterprise end-to-end, applying a single integrated framework, enabling a holistic approach, and separating governance from management. Internal auditors can use COBIT to understand the nature of IT risks that are unique to their organization.

A Toxic Culture. A department leader creates a hostile work environment by promoting friends and abusing employees and company assets. When many employees leave, there could be a sign of a toxic culture. There was an inadequate internal control system as no one tracked expenses. Critically review turnover data as this is a big red flag. Exit interview results should be reviewed regularly. Access control over reports should be reviewed and approved.

On The Rise. Learning is the key to do well in IA. Get students involved early and you can volunteer as a guest speaker on internal auditing topics. IA an get involved in many projects and act as change agents for the organization. Projects can allow one to build and develop business relationships with stakeholders. One can use data analytics during audit engagements. IA can add as a trusted advisor and perform consulting work. One can learn SQL, which is a tool for managing data. One could take others under their wing and mentor them so that they can grow. Interaction between auditee and IA must be positive. Spread the good word that your team does. IA should be innovative in addressing solutions. It is helpful to distinguish the different roles of EA and IA too. Communication skills are the key for IA’s success.

Growth through challenge. Current and past emerging leaders discuss the tough assignments that helped propel their careers forward. Challenges faced in your career can propel you to be a better auditor. It is good to share with others what are some of the common mistakes. See auditors as people and go in with a customer first mentality. Be client centric. Be prepared when you go for meetings and interviews. Get a mentor, build relationships, learn from your mistakes and learn to network. It is important to preserve independence and objectivity. Influencing mindsets are tough. Building relationships with auditees can be tough when you are new. It is important to have a good audit methodology. The learning curve can be steep especially if the industry is new for you. Some departments are resistant to let the IA perform audits on operations. Talent auditors are always in demand. Once you are good, you can engage the C-suite management easily and without fear. Young auditors are always eager for more opportunities.

It’s all in the delivery. Sharing difficult messages is an unavoidable part of the job for internal auditors. Some audit observations can be difficult to convey. You should always build the relationship before telling the bad news. Telling the bad news right away is unlikely to work. Using weekly updates once the exceptions are noted is the key. Preparation is the key to accomplishing objectives. It is important to be fair and factual. Focus on the process as well as content. If you can, you can tailor the response to the personality of the recipient. During the discussion, one can seek opportunities, offer to help, make it clear and maintain open body language. ‘If the audit report is the first time a client is seeing something in writing, that is the first and biggest mistake. Verbal updates are great, but periodic written updates go a long way. Auditors might get into trouble over their poor soft skills. Focus on the problem, include some positives, have a face-to-face meeting etc. The key is not to beat around the bush. EQ is important in helping good delivery. The key is to deliver bad news but still build a good relationship with the auditee.

Breaking Through. Women in business are taking on the barriers to advancement, and that’s good news for everyone. Diversity is good for the workplace. More women need to be in leadership positions. However, women might face issues like lack of support, exclusion, apathy. There needs to be sufficient support from male leaders. Men should be interested in achieving gender equality. Be You. Seize the Moment. Integrate Your Life. Earn Respect. Stay Behind Facts. Be realistic and practical. Forget silos. Think context before issue. Rethink reporting. Aim at destination with gratitude. Women may also face the motherhood penalty.

Mapping Assurance. Internal auditors can facilitate efforts to document the organization’s combined assurance activities. There are a variety of assurance providers. CAE can use an assurance map to co-ordinate assurance activities. It can also aid to prevent gaps in coverage. IA is well positioned to provide combined assurance. The plan should start with the organization’s strategic plan and the key risks that are associated with the strategic objectives. There should be 3 tiers of defence to provide assurance. IA need to assess the quality and quantity of assurance received.

A Winning Pair. Governance and automated controls must work in tandem to achieve maximum results. Good governance is the key. IA needs to access the current risk profile, mitigation activities and residual risks. Good behaviour requires time and employees should receive reminders in order to conduct good behaviour. Desired behaviour ultimately stems from the top.

The High-Performance Audit Team. Today’s complex, evolving business environment demands more of internal auditors. The world is changing and stakeholder expectations are increasing. IA can also rotate and fill other operational positions. An integrated internal audit function can boost performance. There is a strong need to invest in training and learning. Verbal, leadership, communication skills are very important. A high performance team can evolve to meet new challenges and reinvent itself. We also welcome constructive feedback from staff.

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Option B by Sheryl Sandberg & Adam Grant (Part 2)

Taking Back Joy. When I listened to a happy song from childhood and started dancing, I felt happy. Survivor guilt can rob you of your joy. After his passing, I tried to have fun with my children. We took things that reminded us of Dave and made it part of our lives. Allow yourself to be happy and be kind to yourself. Joy has to come your within yourself and no one else. How you spend each day matters more than only the big moments of joy. Do the small things that make you happy. Write down the moments of joy each day. Happiness does require work. Humans are wired to focus on the negative as compared to the positive. The cool breeze could be a positive moment for gratitude too. Happiness can equate to peacefulness too. Try to engage in something challenging and engrossing that can give you that flow state. Exercise can help you to achieve that flow state quickly. Joy can give us strength too. You can find joy in the small moments that you seize and create for yourself.

Raising Resilient Kids. One way is to respond to embarrassment with humour. It is wise to just announce the sad news to your kids directly. We owe it to our children to make them as happy as possible. Early intervention is critical. The school needs to protect a safe environment for kids. Disadvantaged families should be provided with home visits and counseling. Resilience is a lifelong project. Children must develop these few beliefs: they have some control over their lives; they can bounce back from failure; they matter as human beings; they have real strength. It is important to help them understand that they are in control of their lives. Pre-school has a huge role to play in this. Allow your kids to share their dreams with others. It is important to get an education. Kids should adopt a growth instead of fixed mindset. Sometimes, complimenting too soon doesn’t work. Rather, one should comment ‘I’m glad you tried your hardest’. Adults need to tell the kids that they matter. In Denmark, children are encouraged to share their problems in class. Help your kid identify his strengths by making him pick up skills. For instance, you could encourage the kid to pick up a musical instrument. Respect your feelings and try not to suppress them. Sleep matters even during times of adversity. Learning how to forgive is also extremely important. Do not afraid to ask for help and encourage your kids to do so. Sometimes, I still talk about Dave as it helps to keep Dave’s memory alive. If your kids can have a strong understanding of your family members and their parents, they have been coping skills. Nostalgia is usually good as it reflects a pleasant state most of the time. Make the most out of Option B. Keep photos and videos of your loved ones as these help to create happiness.

Finding Strength Together. Hope is the key to resilience. It is possible to bond over hope and create a shared identity. People can pray together. It is important to change tragedy into a miracle. Keep your faith at all times. There is unity in strength. Collective resilience is also dependent on shared experiences etc. Attending support groups can also help you deeply. It might be wise to join a community after a tragedy. Asking for help is actually not a sign of weakness. Shared narratives can play a big part. It is also useful to be lifted by positive ‘stereotypes’ right at the start. Support circles help to build collect resilience. It can certainly be difficult to forgive a gunman who killed so many people. As a community, we can gather together to tackle the tough problems in life. Empowering communities can be the key sometimes. As a community, we can learn to support vulnerable groups.

We are caught in an inescapable network of mutuality, tied in a single garment of destiny. Whatever affects one directly affects all indirectly. – Martin Luther King Jr

Let no man pull you so low as to hate him. – Martin Luther King Jr

Failing and Learning at Work. I took my kids to visit SpaceX. We need to learn from our failures. Often, we are too proud to admit that we made a mistake. The majority of things that people regretted was the actions they failed to take. Move fast and break things. At Facebook, we go for teambuilding and often fail at challenges. Failure must be seen as a learning opportunity. You could ask colleagues what their biggest screw-up is and everyone could compete to see who the biggest screw-up is. Resilience is needed in all organizations of all sizes. We need to all focus on learning from failure. Ask for feedback on how you can improve. Learn to gather and act on negative feedback. We all have our own blind spots but often ignore them. Feedback is hard to take. Sports teams often learn from their mistakes. Learn to take suggestions from a coach too. Try not to treat the feedback personally. People are afraid of criticizing others. Everyone should have at least 1 hard conversation in the past.

The more times a government or company had failed, the more likely they were to put a rocket into orbit successfully on the next try. Also, their chances of success increased after a rocket exploded compared to a smaller failure. – Sheryl Sandberg

When it’s safe to talk about mistakes, people are more likely to report errors and less likely to make them. Yet typical work cultures showcase successes and hide failures. – Sheryl Sandberg

To Love and Laugh Again. Being alone can be an empowering decision indeed. Getting married increases one’s happiness just by a bit. I wanted to find love again after Dave passed on. If you date too soon, people may judge you. Men are more likely to date after their spouse has passed on. The responsibility of caring for children and aged parents seems to fall on the women more. Widows in some parts of the world are cruelly treated. Do not listen to others. When your heart feels like you should date, you should go ahead. However, dating does not erase the grief and that is perfectly fine. When we fall in love, we have a great sense of energy and euphoria. Dating helps brings back the humour. Eventually, one will even learn to joke about death. Joking about Dave now helps to break the tension. Humor makes situations less stressful. It is still very much possible to love someone even after they have died. It is crucial to pay attention to the everyday interaction with our partners. You must turn towards their bid. One way to re-ignite the spark in a relationship is to try new activities. Partners have to be able to overcome conflict. You can’t control whether you fall in love. There is always Option B and we can still find joy.

Resilience in love means finding strength from within that you can share with others. Finding a way to make love last through the highs and lows. – Sheryl Sandberg

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