PRMIA Seminar on Enterprise Risk Management

The Professional Risk Managers International Association (PRMIA) established in 2002 by a volunteer group of risk industry professionals, PRMIA's mission is to provide a free and open forum for the promotion of sound risk management standards and practices globally. PRMIA and Department of Management Science, City University of Hong Kong co-organized seminar on Enterprise Risk Management (ERM) on 9 Jun 2014.

The first speaker was Dr. Danny Ha (Chairman & Founder, Academy of Professional Certification (APC)) and his presentation topic was “Privacy Impact Assessment (PIA) and ISO 31000 for ERM”. Dr. Ha quoted ISACA Newsletter (Vol.11: 21 May 2014) that “ERM” and “Information Security and Privacy Program Efforts” were ranked in top ten items of Internal Audit Priorities for 2014.

Dr. Danny Ha introduced Privacy Impact Assessment (PIA) included Personal Identifiable Information (PII), Personal Health Information (PHI), Personal Financial Information (PFI); and IT Audit. The different between Privacy Audit and IT Audit were discussed and their focus comparison was shown as following table.

There were five reasons that organization undertaken a PIA below.
i) Identifying and managing risks
ii) Avoiding unnecessary costs
iii) Inadequate solutions
iv) Avoiding loss of trust and reputation
v) Meeting and exceeding legal requirements
The cyber risks and cybersecurity were mentioned as following diagram.
Then Dr. Ha quoted Prof. Edward Humphreys (Father of ISMS Standard) that the biggest risks were from IoT, Cloud and Big Data.

After that Dr. Danny Ha stated ISO 31000 which like an umbrella to cover different management system standards. Most organizations applying ISO 31000 had inherent reason to bring culture of risk in their business life cycle. Finally, Dr. Ha said PIA, privacy audits were not only becoming more common in response to these risks, but were likely to grow. Business system developers must aware privacy and security controls in business systems acquisition and/or application development methodology. Dr. Ha alerted us that WhatsApp / Facebook privacy problems existed and you had better remove your privacy information away from your mobile.

The second speaker was Ms. May Tsue (Company Secretary and Manager of Accounting and Adminstration Department, CNOOC Insurance Limited) and her presentation named “Captive Insurance and How to Control the Risk in the Group”.

Firstly, Ms. Tsue explained Captive Insurance that provider of insurance for customers of parent company. She said “A bona fid insurance (insurance made or done in an honest and sincere way) or reinsurance company owned by a non-insurance company parent and which insures or reinsures the risk of its parent and/or affiliate companies.”

Board of parent company objectives are “Motivate risk management”, “Save money/cost”, “Capture profit and investment”, “Disciplined self-funding”, “High management awareness”, “Transparency” and “Tax environment”. There were five types of Captive included “Single Parent”, “Group”, “Association”, “Rent-a-Captive” and “Risk Retention Group (RRG)”.

Two typical structure of Captive were indirect business and direct business which were shown as following diagrams.

Ms. Tsue briefed captive insurer formed could have 50% tax deduction on Profit Tax, to build wealth and to retain risk. The costs to setup and run captive insurer was showed as follow diagram.

At the end, Prof. Mike K.P. So (Co-Regional Director Hong Kong, PRMIA) gave closing speech.

Reference:
PRMIA - http://www.prmia.org/
Meeting with Prof. Edward Humphreys (Father of ISMS Standard) - http://qualityalchemist.blogspot.hk/2012/06/meeting-with-prof-edward-humphreys.html

HKU Public Lecture on Gene and Cancer & Stem Cells

The University of Hong Kong Li KaShing Faculty of Medicine, Centre for Genomic Sciences, Department of Medicine, and Department of Pharmacology and Pharmacy is organizing a public lecture series - "Genomic Medicine: What is it about". The purpose of this series of public lectures is to enhance people’s awareness, understanding, and interest on genomic medicine in Hong Kong. Minda and I attended the last lecture named “Gene and Cancer & Stem Cells”.

The first speaker was Dr. Jenny Ho (Research Officer, Department of Medicine, HKU) and her topic entitled “Can induced pluripotent stem cells do everything?”

Dr. Ho introduced the collection of cord blood stem cells first and mentioned some successful cases. After that she introduced “Mesenchymal Stem Cells (間充質幹細胞)” and “Autologous Stem Cell Transplantation (自體幹細胞移植)”.

After that Dr. Ho briefed Induced Pluripotent Stem Cells (iPS) (誘導多能性幹細胞) which was discovered by Yamanaka Shin'ya (日本京都大學 山中伸彌) research team since 2006. Yamanaka awarded Nobel Prize in Physiology or Medicine in 2012.

The treatment research on cancer was summarized in the following diagram.

The following video showed the recently HKU research on stem cells reformation of heart tissues. You could see the cell motion.

Finally, Dr. Ho summarized different characteristics on different stem cells on the following table.

The second speaker was Dr. Vivian Lui (Assistant Professor, Department of Pharmacology and Pharmacy, HKU) and her presentation named “Tailor-made Cancer treatment”.

In the beginning, Dr. Lui explained what is cancer and its mechanism. Then she pointed out some reasons could cause cancer such as smoking, drinking, UV, chemical and virus. The two factors caused gene mutations were shown in the following diagram.

Then Dr. Lui introduced the Targeted Therapy (標靶藥). In USA, FDA approved abut 63-65 Targeted Therapy but there are only 23 Targeted Therapy approved in Hong Kong. Different mutation of gene had different communication mechanism that needed different Targeted Therapy. Therefore, batch DNA testing was needed to identify which part of gene was mutated and used to match different Targeted Therapy if exist.

At the end, Dr. Lui concluded that personalized treatment for cancer through DNA testing identification was most effectiveness.

Reference:
HKU Public Lecture Series - http://www.hkuehealth.org/eng/genomic/index.html

Visit to LSG Sky Chefs for HKSQ Corporate Membership

We received nomination by HKSQ exco member for LSG Sky Chefs which interested in HKSQ Corporate membership. Since HKSQ Corporate membership is by invitation only, we arranged a site visit to understand LSG Sky Chef’s management principles. HKSQ Corporate membership aims to recognize organization that commit to quality and align with our mission.

In the beginning, Mr. Eddy K.C. Yung (GM, LSG Sky Chefs) introduced LSG and their Lean Journey. The LSG Sky Chefs group is the global leader in airline catering and the management of all in-flight service related processes.

LSG has long history and established by Lufthansa since 1966 and then they acquires Sky Chefs Inc in 1993 and renamed “LSG Sky Chefs” as common brand. The timeline of LSG is shown in the following diagram.

Then Mr. Henry Mok (Manager Delivery & Services, Airline Catering, LSG Sky Chefs) introduced LSG Production System (LPS). Their Lean & Operation Excellence Program aims to transform the business to maintain company’s position as industry leader in service delivery and quality since Jan 2008. LPS developed as a structured approach by lean experts to achieve this program. LPS principles are showed in the LPS House of Excellence included “Just in time”, “Flow”, “Takt” and “Zero-defects”.

Then Mr. Eddy Yung led plant visit and introduced different processes included lean approach to us.

We visited food storage room and its temperature was 4 degree for vegetables.

Mr. Calvin Yu introduced the SQCDP control wall to us. SQCDP stated for Safety, Quality, Cost, Delivery and People.

Mr. Henry Mok briefed the different airline schedule which was real time synchronized with airport so as to prepare the product just-in-time! They committed to prepare all products 4 hour before the standard departure time (STD-4hr). Moreover, tax free grift product employed lean principle to separated different standard parts so as to reduce the tray and its area, as well as, enhance the efficiency.

After the plant visit, we took a group photo for memory.

Mr. Karson Chui (Chairman, HKSQ) introduced HKSQ background, mission and activities to LSG Sky Chefs members.

At the end, Karson presented HKSQ flag and the 25th anniversary book to Mr. Eddy Yung for appreciating their interested in HKSQ corporate membership and visit arrangement.

I believe LSG Sky Chefs corporation operational excellence strategy will lead continuous improvement and become global leader in the industry.

Reference:
Benefits of HKSQ Corporate Membership - http://www.hksq.org/benefit_mem_corp.htm
List of HKSQ Corporate Members - http://www.hksq.org/mem_corp.htm
LSG Sky Chefs - http://www.lsgskychefs.com/

HKSQ Wine Cellar Visit cum Wine Storage Management System Seminar

We appreciated China Merchants Wine Cellar (招商局紅酒窖) and HKQAA jointly arranged the wine cellar visit cum Wine Storage Management Systems (WSMS) Certification Scheme Seminar on 6 Jun 2014. This seminar and visit introduced the WSMS scheme and demonstrated both Fine Wine and Commercial Wine cellar settings in China Merchants Wine Cellar.

In the beginning, Mr. Zhang Hai Jian (Deputy General Manager, China Merchants Godown, Wharf & Transp. Co., Ltd) gave a welcome speech and introduced the background of China Merchants Wine Cellar. Mr. Zhang said they owned two modernized air-conditioned warehouse with total areas more than 500,000 sq.ft and their controlled temperature and humidity wine storage place was the first batch certified WSMS by HKQAA and their operation was under ISO 9001 QMS.

I represented HKSQ to present flag to Mr. Zhang.

And I also presented our 25th anniversary book.

Then Mr. Bryan Peng (Assistant Director, Manufacturing & Service Branch, HKQAA) was guest speaker to introduce the HKQAA Wine Storage Management Systems Certification Scheme.

The scheme started after the abolition of wine tax by Hong Kong government in 2008. HKQAA supported Hong Kong to be an international trading and distribution wine hub. Then Bryan briefed the recently situation of the Hong Kong Wine Industry.

The development of WSMS certification schemes were mentioned from storage to retailer and transportation from 2009 to 2011. Then Bryan briefed WSMS which separated into two parts. The Part 1 is system requirement included “Policy”, “Performance Measurement Indicators”, “Wine Storage Management Plan”, “Implementation of Management Plan”, “Monitoring and Measurement”, “Incident Handling”, and “Management Review and Improvement Action”.

The Part 2 is Code of Practices. Characteristics affect the quality of wine are “Temperature”, “Humidity”, “Lights”, Vibrations” and “Hygience”. Those affect the operation risk are “Insurance”, “Inventory Management”, “Security” and “Maintenance”.

After seminar, I presented HKSQ souvenir to Bryan.

Then Ms. Theresa S.W. Lau (Marketing Dept. Manager, China Merchants Godown, Wharf & Transp. Co., Ltd) led us to visit the wine cellar. There were 3 level security access controls. Smart card was used in lobby, lift and wine cellar entry (addition fingerprint scan in the entry).

The temperature for Fine wine requested by WSMS was from 11C to 17C but fluctuation within 3C per month / 5C per year. The actual temperature was observed to be around 13C. (Fine Wine made for consumption, private collection and / or auction purposes. It intended for long term storage and the storage condition would affect the value and taste of wines over time.)

Then we visited the cellar for Commercial Wine in which WSMS requested temperature from 11C to 22C. We observed the temperature of cellar was around 18C. (Commercial Wine intended for near consumption and fast turnover.)

Finally, we took a group photo in front of China Merchants Wine Cellar Brand for memory.

Reference:

Hong Kong - Asia's Wine Hub - http://www.wine.gov.hk/
China Merchants Wine Cellar - http://www.cmgwt.com.hk/aboutus.php

HKSQ Quality Life series wine related activities:
20140112 - HKSQ Oyster Shucking and Wine Pairing Workshop - http://qualityalchemist.blogspot.hk/2014/01/hksq-oyster-shucking-and-wine-pairing.html
20140125 - HKSQ Seminar - A Strategic Direction for Hong Kong Wine Industry - http://qualityalchemist.blogspot.hk/2014/01/hksq-seminar-strategic-direction-for.html
20140601 - Visit to Smartway’s Innohub (Good for drink) - http://qualityalchemist.blogspot.hk/2014/06/visit-to-smartways-innohub.html

TV Program – Handling Food Waste in Hong Kong

Today, TV Program named “News Magazine (新聞透視)” which reported the situation of handing food waste in Hong Kong. They interviewed Mr. Kwok Ming Cheung (Managing Director of Woodley Agri-Service Company Limited) who is our sponsor of the HKSQ Company Based Student Project Competition 2014, as well as, one of students (The Hong Kong Polytechnic University) in the Champion team of the competition.

In the beginning of the TV program, Mr. Kwok Ming Cheung introduced the recycle food waste could be transferred into high value animal feed for pig.

Since Mr. Kwok had introduced HKSQ Company Based Student Project Competition 2014 to the TV reporter. There were two topics as below:
Topic 1: To improve the process of turning collected food waste into high value animal feed.
Topic 2: To develop a method for effective collection and segregation of food waste so as to facilitate subsequent processes.
Then the reporter added an interview to the Champion team about their project in topic one.

During the student project part, Mr. Ng introduced their proposal to enhance the reduction of water process from food waste included (i) addition oil layer surrounding the tank and (ii) maintaining a little bit vacuum to reduce the boiling point temperature. (Since TV program does not allow for promotion, the student only wear HKSQ pin!)

The field trip of the competition was hosted by another sponsor named Hong Kong Organic Waste Resources Centre (HKOWRC) (有機資源再生中心).

Reference:HKSQ Company Based Student Project Competition 2014 - http://www.hksq.org/company_based_competition.htm
20140215&22 - HKSQ Student Project Competition 2014 - Briefing & Plant Visit - http://qualityalchemist.blogspot.hk/2014/02/hksq-student-project-competition-2014.html
20140308 - Site Visit to Buddhist Chi King Primary School - http://qualityalchemist.blogspot.hk/2014/03/hksq-student-project-competition-2014.html
20140316 - Site Visit to Kee Wah Bakery - http://qualityalchemist.blogspot.hk/2014/03/hksq-student-project-competition-2014_16.html
20140330 - HKSQ Student Project Competition 2014 - Presentation - http://qualityalchemist.blogspot.hk/2014/03/hksq-student-project-competition-2014_30.html

傳媒的操守（Conduct of Media）

今年是六四第二十五個年頭，首半年最關注的新聞，我選劉進圖受襲一事。所以今天想以新聞界之傳媒的操守為題，寫下這文章回顧一下。當年還是學生時，家中是看新報，我只看兩個專欄，一個是世伯梁儒盛而另一個是夫子劉銳紹。他們就好像社會的一雙眼睛，令人看事物看得清楚。以下取材來自梁儒盛口述及他的書「第一時間第一眼」。

在二十五年前，梁儒盛是當時城市論壇的監製。 當年六四，有一墨鏡女子在城市論壇中發表親中言論，梁總監當年堅決做到言論自由即那位女士能完全表達及安全離開現場。我聽梁伯伯說, 如果不能做到這點, 以後就不會有城市論壇了。
他在書中說：「作為新聞工作者，我們的任務和責任，所要堅持者，仍個人操守、處事客觀、中庸、守法之道而已。社會各界人士，常由其個人主觀，個人利益取向，或因萬千顧忌，只想自己的自由，而排斥人家的自由，而造成社會分化，亦不能將工作混淆於類似成見之內。」（第一時間第一眼，第１８３頁。）

編輯方針（Editorial Policy）是否準確，又全憑「編輯判斷力」（Editorial Judgment）。梁儒盛說：「編輯方針必先本乎人類的公義與理性，要在公平、公正、公開的態度下報導與立論；並根據事實，務求客觀；又須容許把持著各種立場的人，都有充足的表達機會。其主體方針，絕不受社會中任何勢力的利用。」（第一時間第一眼，第４頁。）

梁儒盛在書中還說到：「『必須同時』讓不同見解者有其表達的機會。這個做法就是容納眾議，也達致傳媒那恪守不讓的『不偏不倚』的態度。」及「簡單講一句話，傳媒人無權公器私用。」（第一時間第一眼，第６至７頁。）

香港電台敗在誰的手裡？
梁儒盛認為港台在專業上有錯失。他在曾任高位的朋友茶聚中得知竟有人訂定台方立場是反共的。「這個台是反共的！」這句話本身已不守本份、獨裁、野蠻的宣言。相反地，「這個台是親共的！」，性質沒有兩樣。他總結，港台之敗，敗在少數一群領導者手裡。（第一時間第一眼，第８至９頁。）

有關程翔事件（2005年4月22日因涉嫌間諜罪在大陸廣州被捕，拘留至翌年8月31日判監5年，因而受香港傳媒關注。2008年2月4日，程翔獲准假釋，並在翌日下午返抵香港。），我問了梁儒盛的看法。他雖然不知原因，但他嘗試用自己的經歷作比較。他在大陸改革剛剛開始後以探親為名，在快報中作報導，文章名為＜故鄉真貌＞（傳媒縱橫三十年 - 傳媒透視）。當年比程翔時期更敏感，但他說當時只為自己服務的報社工作，沒有收受其他報社的利益作報導，所以沒有任何事件發生在自己身上。這可能是程翔被捕的其中一個原因。

以上只是猜測，因為不知真相，很多時都會是錯的。我舉別一個例子說明。有關葉知秋事件，林超榮在文章說：「...不過，買兇殺人牽涉政治內幕，搞成桃色疑雲也未嘗不可，至今依然有人相信，葉知秋的死並非表面那麼簡單，背後另有內情。」有人相信另有內情是因為他們沒有掌握真相。我可以肯定葉知秋的死是桃色糾紛，因為行兇者，被害人都是我父生前好友（包括梁儒盛）。

回顧中國五十年政局，我認同梁儒盛以下的看法：

一、他認為５９年大躍進是一個錯誤的經濟政策，因為它令中國起饑荒，死了數以百萬人計，那是愚蠢無知的做法。

二、他認為６６－７６年的「文化大革命」是顛倒人性的鬥爭，令千萬人喪生，家庭解體，文化衰落，經濟頹敝，破壞了人類謀求幸福的大前提，故此是苛政，必須大張撻伐。

三、他認為鄧小平的開放改革政策是合乎中國需要的德政，能消除自內的階級歧見，調動人民進取心，開啟生產力，讓人民取得豐足的生計。

四、他認為８９年「六四事件」是中央政府疏失了安撫國內青少年的民情，乃導致希望與實情的一次不幸的決戰，仍然是當政者的嚴重缺失。

五、他認為香港回歸中國是理所當然的事，香港本來就是中國的領土，它的形成只是在歷史長河中的一次落差。

六、他認為台灣不應獨立，猶如西藏和新疆，它們是中國民族大結合歷史中的部分環節，是代代先烈先賢努力得出的成果，是民族間之認同，並不以個別野心家意願為依歸。

（梁儒盛……寫於2007年10月；第一時間第一眼，第５頁。）

本人有幸得梁世伯贈書及簽名。

六四小片段：
上個月看中醫，據我的中醫師口述，她當年剛大學畢業正工作中，而她的妹妹正讀大學。她的妹妹不知就裹上了北京天安門遊行集會，北京政府多日來有呼籲學生回家及提供免費火車，在六月三日晚，廣播說真的要清場。中醫師的妹妹是乘坐最後一班免費火車由北京回武漢。據中醫師說，當年大多數工作單位都停工或只有上午班，下午就遊行示威，沒有公共交通工具。全國正處於停頓狀態，完全沒有生產。

去年今天：ＶＩＩＶ２４之公民抗命（Civil Disobedience）

Reference：
梁儒盛（２００１）傳媒縱橫三十年 - 傳媒透視
梁儒盛（２００８）傳媒縱橫三十年(之二) – 第一時間第一眼
20140302 - 反暴力 ● 反佔中
2013 去年今天：ＶＩＩＶ２４之公民抗命（Civil Disobedience）
2012 去年今天：華叔的智慧
2011 去年今天：Democratic & Freedom (民主與自由)
2010 去年今天：New Goddess of Democracy (新民主女神)
2009 去年今天： 六四民運的啟示

Visit to Smartway’s Innohub

I was honor to be invited by Mr. Simon Tong to visit Smartway’s Innohub on 30 May 2014. Simon is the first systematic innovation consultant using Mr. Darrell Mann’s approach I knew in Hong Kong. He is an active HKSQ member, ASQ member and ISI exco member. We are fellow students in Applied Physic Department of CityU but we separated for 10 years. I enjoy the atmosphere of Innohub and buy Simon’s idea that Innohub provides a relax area for networking and exchanging ideas. The most important element is the catalysis of creativity (i.e. Wine).

Outside the innohub, we have a beautiful view of boats.

I try to use his presentation equipment set and all are wireless. It is suitable for a small class about 20 participants.

Darrell Mann’s famous book named “Hands-On Systematic Innovation for Business & Management” is employed TRIZ approach into Business & Management. He had come to Science Park and gave us a seminar entitled “Innovation – From Art to Science” in 2009.

Reference:
Smartway Management Technologies Ltd. - http://www.smart-way.hk/
Innovation – From Art to Science - http://qualityalchemist.blogspot.hk/2009/08/innovation-from-art-to-science.html