Technology plays a key role in a company’s growth and efficiency; in fact it is essential to maintain one’s competitive edge. Yet, rapid technological change is constantly creating new threats. Companies therefore need to adapt and adjust their security measures in order to keep pace with the changes.

Guarding against cyber attack is a major challenge

No company is immune to cyber attacks. According to the International Business Report (IBR) published by Grant Thornton International in the fall of 2016, one out of five companies around the world (21%) were victims of a cyber attack in the 12 preceding months, as compared to 15% in 2015. A total of 2,500 business leaders based in 36 countries were surveyed for the study.

The explosion of data generated by digital technology, now exacerbated by Internet of Things (IoT) devices, combined with the high level of connectivity among organizations, creates many opportunities for cyber criminals to do some damage. In the manufacturing sector, for example, all data production, acquisition and management systems are inter-connected and companies work with a network of suppliers and distributors. These are all areas of vulnerability for a company.

Cyber crime is very costly for the global economy. According to the IBR, cyber attacks cost a total of US$280 billion each year.  The attacks are carried out by criminals who often are well organized, some even acting as mercenary hackers on behalf of governments and organized crime groups. These hackers use increasingly sophisticated methods to penetrate an organization’s defences.

Canada is not immune to cyber attack!

Unfortunately, Canada is not immune to the problem. Almost 19% of companies surveyed for the IBR study reported that they had been the victim of an attack in the previous year. The aim of these attacks was primarily to damage infrastructure (IT systems, databases, etc.) or to steal money by making fraudulent requests or threatening to hack the company’s computer systems (e.g., Ransomware attacks).

Financial losses are not the greatest fear. In fact, 31.6% of organizations surveyed consider that the main consequence of a cyber attack would be the amount of time spent dealing with the aftermath. Other consequences include damage to the company’s reputation (29.2%), the loss of clients (10.2%) and lost revenues (9.8%).

Exemplary cyber security practices are therefore essential to reassure and attract customers, who want a secure environment for their electronic transactions. They also demand that personal information be adequately safeguarded. Companies must pay especially close attention to this matter and ensure that they are well versed in, and adhere to, federal and provincial legislation.

Safeguarding measures that are part of the corporate strategy

Cyber security is more than a set of binding measures to protect a company’s data and systems. Such measures must be a part of the company’s strategic approach in order to ensure that its operations are more efficient and secure.  To be truly effective, cyber security must become part of a company’s ethos and fully adopted and implemented by all company employees at all levels and strictly monitored for adherence by connected partners.

Prevention and preparedness remains the best way to deal with cyber attacks, knowing full well that no defensive measures are perfect.

The first step consists in calling upon experts to assess the risk factors—both within the company and in its broader network—in addition to its cyber security weaknesses. This information can then be used as the basis for developing and implementing a policy, as well as security procedures and mechanisms (such as penetration tests), to reduce these risks as much as possible and react quickly in the event of an attack.

Since every organization is different, tailored solutions must be developed according to the company’s area of activity, structure, dependence on technology, supply chain, network and sales methods, etc.

Finally, it is important to remember that cyber security is everyone’s business and must be part of the corporate culture. As soon as new employees are hired, they must learn about the policies and procedures that must be followed and then be reminded of these policies and procedures in different ways on a recurring basis. For example, it could be ensured that each person is acting responsibly by discussing cyber security during annual performance appraisals.

For more information, as well as some cyber security tips, do not hesitate to contact our experts, Garry Blaney and Greg Jenson.

This article was written following a study conducted by Grant Thornton International. To access the original content, consult the study.

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Sebastian Alberione
Senior Manager | Eng. | Tax

Data management is critical for businesses.

To find out more about data governance and the related issues, I met with Marcelo Cardoso, Co-founder of Prodago Solutions, which provides data governance advisory services and markets Prodago (Lean Data Governance Platform).

How does a data governance process add value to a business?

The main value of data governance is the ability to explore data and facilitate innovation using digital transformation initiatives. Without a governance process, the business could be exposed to data quality issues that could have a significant impact. Today, data are at the heart of all organizational decisions and transformations (analytics, business intelligence, artificial intelligence, automation, etc.). Organizational transformation and innovation initiative do not see the light of day without quality data.

What do businesses generally do?

There is always some form of data governance in a business, even though it may go by another name. Defining data formats for new IT systems or configuring intranet user access rights are examples of data governance. The main issue is that, generally, organizations react to problems rather than identifying the risks underlying data used in the most critical business processes and operations and applying preventive corrective measures.

What are the greatest errors to avoid and what approach do you suggest?

The most common error when implementing such processes is the failure to link governance measures and business objectives. The traditional approach consists in setting up an “organization”. A committee is created and a network of data managers for the various sectors is identified, but this does not always work.

We suggest identifying a sector’s business objectives and analyzing transformation initiatives in terms of these objectives (for example, a 3600 view of clients). The critical processes associated with these initiatives and the data they use are then identified. Corrective measures (data rules and responsibilities) are applied if gaps are found in the quality of data needed to ensure the performance and security of the processes.

It’s important to have some traction within the organization and set priorities because data governance cannot be implemented across the board unless the relative importance of the data has been determined. This requires considerable effort.

Technology is evolving rapidly and data are increasingly more prevalent (internet of things, megadata, etc.). How does this impact governance?

Organizations are aware that data are no longer just the result of a business process, they now see data as an asset. More and more, data are becoming the responsibility of the business side of an entity rather than just the IT department. In recent years, advances in areas such as artificial intelligence, predictive analyses, etc. mean that entities are making more intensive use of data and not necessarily in the context in which the data were created. Data are collected from various sources and cross-referenced to generate value. Governance is essential in this context.

To call on the services of Marcelo and his team, visit website contact page.

If you would like to further explore this topic, Marcelo suggests visiting this site for some interesting articles.

25 Apr 2017  |  Written by :

M. Alberione is your expert in taxation for the Montréal office. Contact him today!

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Maximilien Larivière
Advisor | ing. jr, M. Ing. | Tax

We can all imagine speeding down a winding road on a lovely summer afternoon or burning up a race track: it’s an image that appeals to all of us, not only car lovers!

Speed, control and freedom are concepts that trigger strong emotions, reminding of us of exhilarating times. This is why performance is one of the key factors in automobile technological development for many manufacturers. Years of meticulous work and close attention to detail are needed to attain the highest levels of performance provided by certain car models. Despite these developments, some thrill seekers are not satisfied with manufacturers’ suggestions and turn to high performance products available on the aftermarket. It’s not only pimply teenagers who tinker with cars in their parents’ garage!

For some, like Karim-Philip Antaki, SR&ED/Motorsport Performance Engineering Director at Lachute Performance, improving automobile performance is an actual science based on a precise engineering process. We spoke with him about this topic.

Q: Objectively (scientifically) speaking, how is the performance of a vehicle defined?

A: A vehicle’s performance is mainly measured by its physical ability to accelerate, brake and handle the road, but also by the level of comfort and pleasure at this same time. Vehicles are also qualified according to their position on the market or market segment where there are objectives to be attained compared to the competition.

Q: How can the performance of the original vehicle be improved?

A: After a technical evaluation of a vehicle’s current capabilities, we establish key performance indicators (KPI), such as gas consumption or motor efficiency in terms of pumping. A study on the capabilities and objectives is then undertaken and a technological exploration path is defined.

Q: What advantages are there to making such modifications?

A: Fuel economy thanks to increased cycle efficiency is on everyone’s lips these days. The motor’s performance at cruising or full speed will be influenced by the smoothness of transitioning power based on the motor’s improved thermal characteristics, but also on the balance of the proposed solution: power versus road handling and braking capacity.

Q: Are the solutions that you’re proposing reliable? What about safety?

A: There are no solutions without safety. Durability and reliability are criteria prioritized by our development philosophy, both on the race track and on the road. These objectives force us to find a balance when developing all of our projects.

Q: What do you think of the new hybrid and electric automobile technologies?

A: They are undeniably here. These new technologies represent an asset for automobile performance: instantaneous power and economy of non-renewable materials. In these cases, the search for performance is a real scientific and technological accelerator! We need to prepare to integrate these technologies and their capabilities on a greater scale. They provide unquestionable advantages in world competitions such as the 24 Hours of Le Mans and Formula E, which will take place in Montréal this summer, where all builders have designed a development and contribution platform.

Q: Hasn’t it all been invented? What’s in store for the future of automobile performance?

A: No! There’s no end to the quest. Hybrid and electric technologies are the best world platform for technological development, as well as the miniaturization of variable compression ratio engines and turbocompression, to produce power that meets demand while providing fuel economy. The goal will always be to increase cycle efficiency to reduce fuel consumption, even if this reduction will not always be achieved through the improvement of internal combustion engines, but rather by removing the pistons if we can manage to find a more efficient alternative.

Karim-Philip Antaki has been SR&ED/Motorsport Performance Engineering Director at Lachute Performance for more than seven years.

A recent graduate of the University of Cranfield, England, where he completed a Master of Advanced Motorsport Engineering, Karim-Philip is also a Performance Engineer for Nissan Motorsport (NISMO) and Race Engineer for the Pirelli World Challenge series in the United States.

25 Apr 2017  |  Written by :

Maximilien Larivière is an advisor at Raymond Chabot Grant Thornton. He is your expert in taxation...

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Hélène Robitaille
Senior Manager | CPA, CA, LL.M. Fisc. | Tax

The federal and Quebec budgets did not provide for any changes to the research and innovation tax measures, including the SR&ED credit, however, there are some noteworthy measures.

Federal

The federal government proposes an Innovation and Skills Plan with four components:

Skills: Help young Canadians to kick-start their careers, make training opportunities more accessible to working Canadians and improve access to global talent through accelerated processing times.

Research, technology and commercialization: Increase investment in innovation by business in six key areas (advanced manufacturing, agri-food, clean technology, digital industries, health/bio-sciences and clean resources); invest in a number of superclusters; increase the number of collaborations between industry, post-secondary institutions and research institutions; reinforce world class research in certain area;s and assist Canadian innovators in finding a first customer.

Program simplification: Review innovation programs provide a client-centred approach.

Investment and scale: Create a Strategic Innovation Fund to consolidate and simplify existing programs. Make available up to $400 million in venture capital over three years through the Business Development Bank of Canada. The government also wants to increase export growth and the number of high-growth companies.

In the coming months, we’ll see how these plans will be put into action.

Quebec

Quebec announced investments of $830M to stimulate research and innovation:

An additional $115M will be injected into the Quebec Research Funds that provide bursaries to students and university research centres.

$115M to support the following research organizations:

  • Génome Québec;
  • National Optics Institute;
  • Nine industrial research sectoral groups;
  • Computer Research Institute of Montréal.

$190M to the Ministère de l’Économie, de la Science et de l’Innovation (MESI) to finance three areas:

  • Support emerging innovators, and enhance the culture of science and innovation;
  • Increase the ability to carry out world-class research;
  • Accelerate the transfer and marketing of innovations.

$100M to create an artificial intelligence supercluster in Montréal.

$150M will be invested to promote development in the life sciences sector. The MESI will reveal the strategy in the spring of 2017.

$46M to stimulate innovation in the forestry sector and $22M for the maritime sector.

The most interesting development is likely the $125M investment to promote the development of the innovative manufacturing sector. The budget proposes ten solutions, including creation of a one-stop portal: the Enterprises Québec online portal. An “innovative manufacturer” title is being created and financial support will be provided to businesses.

The government plans to invest a few million to promote entrepreneurship, particularly with young people, and to fund growing businesses.

25 Apr 2017  |  Written by :

Ms. Robitaille is a senior manager at RCGT. She is your expert in taxation for the Montreal office....

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