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Certificate program primes professionals for risk analysis in business

Computer mainframe lit up by blue light. Small dots of red and yellow punctuate the rest of the mainframe with several computer chips.

Every company and venture comes with risk. In eCornell’s Risk Analysis certificate program, developed by Linda Nozick, director of the Department of Civil and Environmental Engineering at Cornell, professionals learn how individuals and businesses can avoid, mitigate, share and diversify risks. The certificate includes four key modules: risk analysis foundations, risk evaluations, risk modeling and risk perception.

In a recent conversation with eCornell, Nozick discussed how the program charts out risk in a quantitative and statistically focused manner.

How do we quantify risk?

“Measuring risk is actually really difficult. It is one thing to say: Something’s risky. But once you have to ask ‘how risky,’ you have this question of how to put that risk in context with other risks. And we can talk about this really in an interesting way, when we think about valuing human life or how we handle risk in the public sphere. We make very different decisions about investment for risk mitigation on the highway system than we do in a nuclear power plant. You see the massive difference in funding. We try to illustrate that by looking at specific application domains and statistics with understanding that probability distribution. How likely is an outcome and how bad is it?”

What is risk perception and how does risk attitude affect decision making?

“Risk has a lot to do with how people interpret things, and we don’t interpret them all the same way. And so I think it’s important in the risk space to kind of understand how your perceptions, your attitudes toward risk make you more vulnerable to risks or help you mitigate risks. Somebody who’s really risk prone doesn’t worry so much about risk, and they take more risks than their company would like them to. You are trying to understand how risk attitudes affect decision making. Attitudes actually do drive how you make choices . . . that’s really what this whole thing is about: How does your mental headspace impact your decision making when it comes to risk?”

Is this course content constrained to risk professionals?

“Not at all. This course really is agnostic with respect to the application domain. We talk about financial risk. We talk about health risks. We talk about all sorts of risks. There really is that opportunity to see the applications across different types of business professionals and roles and industries, which could really give folks interesting perspectives and a lot of fundamentals as they’re changing careers or moving up in their career.”

Equip yourself with the tools to identify risks and apply strategies that protect you and your hard work — no matter your industry — in eCornell’s Risk Analysis certificate program. Learn more and enroll now.

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Leaders examine global economic risks in International Business Law certificate program

Gavel in foreground, world map in background.

From repeat wholesale international transactions to the one-time hire of a consultant abroad, companies of all sizes must now understand the liabilities they might take on during global business operations. Celia Bigoness, a clinical professor at the Cornell Law School and director of the Blassberg-Rice Center for Entrepreneurship Law, developed eCornell’s International Business Law certificate to help professionals understand and mitigate business risks. Bigoness recently discussed her online certificate with the eCornell team.

Why would a ‘domestic business’ need an understanding of international law?

“We tried to make sure that this course would be relevant for a whole variety of companies and individuals, including many who may not think they are necessarily involved in cross-border transactions. So, for example, there’s a module on dealing with tariffs — you could be in a company that thinks that what they do is purely domestic, but the [company] may import products or be looking to import products in the future. There could be cost implications there, and they [need to] understand how to deal with tariffs.”

What tools can businesses use to protect themselves from liability?

“Professionals should be able to look at a particular business strategy or a particular question or set of facts and be able to identify the red flags there, to be able to ask: How is [hiring a consultant in Venezuela] different from hiring a consultant in New York state? What are the risks that a business takes on when it is operating outside of its home environment? And how can that business begin to identify those risks, prioritize them and figure out which risks are acceptable and which risks are not. And then, as a practical matter, once you’ve said the risks are not acceptable, ask ‘what do we do about it?’ That’s where we get into a specific sort of contract techniques and other ways outside of a contract in which a business can protect itself. For example, getting insurance against a specific foreign risk.”

How does the course respond to an evolving geopolitical world?

“We rely heavily on a case study method … and we focus particularly on political risks. What if you are doing business in a country that has a change in leadership which is hostile to working with Americans, or, more broadly, more hostile to working with foreign investors. [The government] may decide that it wants to take action against foreign investors, and that action could be everything ranging from expropriation at the most extreme level to something that is much more common, such as raising taxes or saying you can no longer send American workers. What do you do? What rights do you have as a U.S. business when a foreign government seeks to put pressure on you?

Gain the tools to understand your business’ place in the increasingly globalized world in the International Business Law certificate program from Cornell. Learn more and enroll now.

Quotes have been edited for length and clarity.

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Cornell Keynotes podcast: AI today – laws, ethics and protecting your work

Abstract multi-colored objects on blue background

Understanding the ethical and legal use of AI is important for any business. In a new episode of the Cornell Keynotes podcast from eCornell and the fourth installment of the “Generative AI” series, Cornell Tech professor Karan Girotra pairs up with professor Frank Pasquale from Cornell Law School to discuss the laws and ethics of generative AI while looking at performance guarantees as well as unintended consequences and outcomes.

The conversation highlights how organizations in finance, health, education, media and manufacturing are using these technologies in clever ways and charts a path for the next generation of use cases — ones that go beyond using assistants to enhance individual productivity.

Read more on the Chronicle.

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Cornell Keynotes podcast: Real estate right now

Four speakers on screen during a virtual panel

Post-pandemic real estate markets present many interesting opportunities, despite their ongoing challenges. While “back-to-office” efforts remain weak in many urban cores, those same downtowns are experiencing booming retail, entertainment and cultural visitation.

In a new episode of the Cornell Keynotes podcast from eCornell, Associate Professor Emeritus Jan deRoos and senior lecturers Jeanne Varney and Daniel Lebret from the Cornell Nolan School of Hotel Administration explore the forces driving real estate market trends and delve into recent efforts to convert “office-to-anything-else” spaces.

Read more on the Chronicle.

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Master active listening to enhance decision-making

Four people, two men and two women, are gathered around a table covered with various supplies, such as notebooks, pens and coffee mugs. They are looking at two large whiteboards filled with colorful sticky notes. Picture a colleague grappling with a tough decision — they’re probably feeling the weight of uncertainty and pressure. In such moments, it’s tempting to step in with solutions or advice. But real support means resisting that urge, putting your own ideas aside and listening carefully to understand their concerns, priorities and the help or reassurance they seek.

In the Cornell Keynote webcast “Active Listening: Supporting People During Difficult Decisions,” Cheryl Strauss Einhorn, an adjunct professor at the Cornell SC Johnson School of Business and Cornell Tech, shares the four types of active listening and how utilizing them can support decision-makers.

What is active listening?

“There are two kinds of listening: passive and active. In passive listening, the responder is just taking it in, and the person speaking may not get any feedback. We don’t have a sense of whether or not the responder really got what we meant to say. Conversely, active listening is the practice of making sure you make the other person feel heard. You’re listening for cues in what they’re saying so that you can respond, not from your vantage point, but from the vantage point of what they’re truly inquiring about.”

Why is active listening essential in the decision-making process?

“Decision-making is a holistic process, and for too long, we’ve been under the impression that our decisions are ours alone. For our decisions to truly succeed, we need to be able to take into account other stakeholders’ viewpoints, which means actually asking them questions. What to ask is going to stem from what it is they’re talking to us about.

I was interested in coming up with a framework for listening to people and then asking questions that show we are responding to what they’re asking. And, if we’re unsure what that is, how can we further open up the conversation to ask them what they mean.”

What are the four types of active listening support?

“The four types of active listening I discuss are emotional, informational, analytical and reflective.

  1. Emotional support is listening with empathy, making space for the emotion and doing it without judgment.
  2. Informational active listening is about providing the information the other person needs, whether it be knowledge, facts or data.
  3. Analytical support helps them to interpret and understand what they’ve already gathered and how the information can be synthesized into something that has meaning.
  4. Reflective listening is really about mirroring. How often has someone come to you, and you think, ‘I believe they already know the solution.’ By asking questions that mirror what they’re saying, you help them prioritize and clarify their own thoughts.”

How can each type of active listening help support decision-makers?

“Emotional support can benefit the decision-maker by validating their feelings and making them feel heard. You may hear the other person say, ‘I feel,’ and you could respond with, ‘That sounds difficult,’ or ‘I hear your frustration.’ You listen for the cue the other person is giving and respond without bringing judgment to their emotion.

A decision-maker in need of informational support will ask if you have the information they need available. If you do, you can provide it. Otherwise, you can ask what information or data would be useful for them at this point. In a professional setting, speaking to what a decision-maker is asking for makes them feel like you are truly collaborating and giving them the support they need.

When offering analytical support, you can listen for something like ‘How would you interpret’ or ‘What does this mean?’ In these instances, somebody is asking for some kind of interpretation or synthesis. If you think that you have that at your ready, terrific. If not, you could say, ‘What kind of analysis would help you think this through?’ so that you can be directly responsive.

Reflective support helps decision-makers clarify their own thoughts and priorities. You might hear a decision-maker say, ‘I can’t decide’ or ‘I’m conflicted.’ This does not mean they’re asking you to decide for them. You can ask them back, ‘What’s the goal you want to achieve?’ or ‘What’s your priority here?’ and that can help them to bring forth again their own priorities and a solution that they already may have in mind.”

What are some common challenges people face when practicing active listening, and how can they overcome them?

“The toughest thing to remember when actively listening to another person is that you are not the decision-maker. The idea that the other person is a capable decision-maker and their decisions are their own is very important, and one way to pair active listening with this idea is to simply pause. We’re so trained to jump right into conversations that it feels unnatural to take an extra beat, but waiting for a moment to consider what the other person is trying to convey and having that metacognition come forward is going to make it easier for you to be in service to the other person.”

How do you see the principles of active listening evolving in the future to support decision-making across different industries?

“One of my recent research projects, which we discussed during an earlier eCornell Keynote, identified five different ways people approach decisions, each of which has a different underlying value structure. This means individuals are optimizing for different things in their decision-making process. Once you can identify which problem-solver profile somebody is, the act of listening becomes much easier.

For example, if you know someone is a ‘detective’ — like I am — when you come to them with an answer, they’ll want to see the data that supports it. So, if you say to me, ‘Cheryl, this is the evidence I have that supports this hypothesis, and I think we should move in that direction.’ I am going to feel so appreciative that you recognized my need for evidence and allowed me to assess whether that evidence makes sense to me.

That is a great way that I’ve seen companies and teams really bring this idea of active listening forward to streamline decision-making, build trust between team members and increase productivity by aligning communication styles with individual problem-solving approaches.”

Interested in learning more? Discover how you can leverage your problem-solver profile to tackle challenging problems in the Complex Decision-Making certificate program, authored by Cheryl Strauss Einhorn.

This Q&A has been edited for length and clarity. Experience the full Keynote “Active Listening: Supporting People During Difficult Decisions” on the eCornell website.

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Professionals apply techniques for digital transformation in AI certificate program

AI has broadened how companies integrate technology and digital transformation into their operations. For Karan Girotra, the Charles H. Dyson Family Professor of Management in the Cornell SC Johnson College of Business, AI prompts questions about a new wave of automation..

The AI for Digital Transformation certificate program, authored by Girotra, combines academic theory and practical executive experience in business and technology into one seamless journey through the new opportunities and potential pitfalls that AI brings. Girotra explains how businesses can utilize these new tools for success through data collection and experimentation. The program concludes with tips for encouraging a culture of learning and leadership through AI.

Girotra discussed the power of data-driven AI enhancements and digital transformation in a recent conversation with eCornell.

How essential is learning AI for professional development right now?

“That really comes down to the question: How is the world going to change [from this breakthrough]? We’ve seen from previous generations of automation that when we automate physical work, the new efficiency forms a pattern. This time, the automation of cognitive language work allows us to benefit in certain ways, including increasing productivity of individuals and organizations. People who don’t work on implementing these ideas risk being left behind and won’t reap the benefits of automation.”

How have you worked to make digital transformation, specifically with AI, accessible for a general audience?

“The program is not basic in ambition, but it is basic in style. The technical language is minimized, and [the courses] do not use jargon. In fact, there is a whole module that I call ‘Cut through the techno babble.’ So it’s designed to be extremely accessible.”

With AI constantly evolving, does this course have longevity in its application?

“Right now, there are so many hyper-specific courses in the AI boom. You have marketing with AI or trading with AI or one of a million other subspecialties. The problem with specific versions is that they change and lose their value with [any procedural innovation]. But if you learn AI more generally – what it can do for any role – then you can invent new ways to use it without copying the current ways people are using it. In a way, there’s a trade-off. When you get more narrow, AI becomes more relevant [for current issues], but it becomes less useful as the world changes. With this course, we teach the conceptual knowledge behind AI in digital transformation to let individuals chart their own procedures in a changing environment.”

Keep pace with the rapid advancements in AI and digital technologies in the AI for Digital Transformation certificate program. Learn more and enroll.

Quotes have been edited for clarity.

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Learners apply data-driven marketing strategies in Cornell certificate program

Marketing can sometimes feel abstract and uncertain, yet professionals in the field must meet the challenge of justifying their expenditures and linking them to key performance indicators each day.

Sachin Gupta, the Henrietta Johnson Louis Professor of Management at Cornell’s SC Johnson College of Business, shares his statistics-based and data-driven approach to getting outstanding returns in his Demand Marketing online certificate program from eCornell.

Gupta recently spoke with the eCornell team about the program.

How do you embark on the process of data analysis in marketing?

“The data is typically collected in a survey-based setting online where you recruit participants in the study. When we come to the analysis of the data, that’s where the statistics kick in. The analysis is done using a model that is likely to be unfamiliar to most people. In the program, I explain that analysis in some detail. I demonstrate how to use R programming language to analyze data, interpret the findings and make decisions based on the results.”

How can marketing data influence decision-making?

“These decisions might involve product design choices for items like cell phones. Consider battery life as a feature: How should changes in battery life be tailored to meet demand? Similar considerations apply to pricing, which hinges on consumer willingness to pay for enhanced features. For instance, if you offer phones with a 12-hour battery life and phones with a 6-hour battery life, you must assess consumers’ willingness to pay for the extended battery life and use that information to determine pricing strategies.”

How can historical data inform future marketing decisions?

“When focusing on return on investment for your different marketing activities, you have to look back on historical data where you have sold the product, employed some marketing activities and spent money. This approach highlights what worked and to what extent and, therefore, comes up with a measured ROI. That’s a backward-looking accounting perspective from which information can be used to make better decisions in the future.”

What is the most critical information in digital advertising that drives decisions?

“The idea of attribution is pervasive in the industry. It involves analyzing spending on various digital channels like Facebook, LinkedIn, Google and others to accurately attribute or assign credit to the platforms and campaigns that are actively driving your conversions and sales.”

Applying these analytical techniques can assist you in crafting cost-effective marketing strategies that align well with demand. Sachin Gupta’s Demand Marketing certificate program is open to professionals who possess a foundational knowledge of statistics and Excel. Learn more and enroll now.

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Family business owners strategize for longevity in new certificate program

Workers review documents while standing in front of items on a store shelf

For Joseph Astrachan, a co-author of Cornell’s Family Business Leadership online certificate program, a family-run business is a generational tradition. Since Astrachan was young, his family has operated businesses in fields ranging from pharmaceuticals to shipping. He is no stranger to the difficulties that come with owning a company tied to the fabric of a family, including managing close relationships in the face of business challenges.

With Daniel Van Der Vliet, executive director of the Smith Family Business Initiative within the Cornell SC Johnson College of Business, John Engels, president and CEO of Leadership Coaching Inc. and Holly Isdale ‘86, founder of WealthHaven, Astrachan has blended academic theory and industry practice in a certificate program that helps others navigate the obstacles and opportunities of running a family business successfully.

“There is no way around it: Navigating a family business is distinctly different from the traditional corporate model,” said Astrachan, a Professor Emeritus and former executive director of the Cox Family Enterprise Center at Kennesaw State University’s Coles College of Business.

The certificate program uses a hands-on approach to address how the personal and professional overlap in family businesses. Courses include:

  • Family Business Leadership Fundamentals
  • Managing Family Relationships
  • Stewarding Family Wealth and Values
  • Implementing Family Governance Systems

Just like with any other business, management in a family-run venture evolves over time. For family businesses, there is often an added layer of grief associated with leadership changes. Sometimes assumed agreements and familial relationships complicate these transitions.

“Continuing a family-run business requires perpetuation through transition, passing it from one generation to the next,” Van Der Vliet said in a recent conversation with eCornell. “Even though all business begins with family . . . some of this expertise around family business does not exist in academia. Family business is very specialized.”

To help learners understand the nuances, the Family Business Leadership program combines advisory parties – like lawyers and accountants – and family members into one cohesive group of learners. The courses organize behaviors in family businesses into familiar workplace relationships and help make sense of common patterned dynamics. Learners gain practical insights they can immediately apply to their own operations.

“Family members are not asked to share anything deeply personal,” Van Der Vliet said. “Their projects could become more personal if they choose, which can be beneficial for their takeaways from the course… and for those that are not family members in the family business, on the advisory or service side, they can have an opportunity to realize [how family dynamics] broadly affect the company.”

Discover how to manage relationships, steward wealth and implement governance structures in Cornell’s Family Business Leadership certificate program. Learn more and enroll now.

Quotes have been edited for clarity.

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3 strategies to optimize executive pay in your organization

Executives make a deal with a handshake over a desk

Well-structured executive compensation packages can attract talented leaders to C-suite and top-tier management positions. Companies must consider the impact those offers might have on their employees and businesses.

Providing a clear rationale for high-level salaries and benefits supports employee productivity and morale throughout an organization. Getting it wrong can have a detrimental impact on company culture and can also lead to fines, sanctions, tax penalties, lawsuits or reputational damage.

LizAnn Eisen, faculty director for the Cornell Tech Board of Directors Forum and acting professor of the practice at Cornell Law School and Cornell Tech, recently hosted a Cornell Keynote discussion of executive pay featuring Jessica McNamara ‘96, senior counsel at IBM, and Jennifer Conway, a partner at Davis Polk. The trio covered strategies for ensuring an organization’s pay structures align with regulatory requirements and best practices for perks, clawback and noncompetes.

1. Prioritize transparency and cross-team alignment on perks.

The crescendoing call for transparency in executive pay calculations includes non-cash benefits, or perks, such as travel on company aircraft, personal security and country club memberships. Corporate leadership teams can sometimes find it difficult to distinguish business expenses from disclosable perks.

“The SEC (U.S. Securities and Exchange Commission) considers a personal benefit to be a perk unless it’s integrally and directly related to the performance of duties,” Conway said. “If it’s a perk, then it has to be valued based on the aggregate incremental cost to the company — the cost of providing the perk — which sounds simple, but it can actually be very complicated.”

While SEC rules apply only to public companies, the Internal Revenue Service (IRS) monitors all businesses for non-cash, in-kind fringe benefits provided to any worker in exchange for services, focusing on whether employers are properly reporting employee income. A taxable fringe benefit requires imputing income based on fair market value.

Both SEC enforcement action for inadequate perk disclosure, which the commission sees as a possible breakdown of internal controls, and audit activity from the IRS regarding personal trips reported as business travel have increased recently.

When dealing with the two different sets of federal standards for perks, McNamara advises that companies make sure their practice is robust using three key steps:

  • Have clear written policies and approval processes applicable to benefits like the use of corporate aircraft.
  • Maintain a detailed record-keeping system and automate inputs when possible.
  • Do monthly and year-end reviews with all key stakeholders, including administrative assistants and human resources, legal and tax departments.

2. Understand the latest rules on compensation recovery.

Last fall, the SEC adopted the final clawback rule mandated by the Dodd-Frank Act. The act subjects erroneously paid compensation to recovery and applies to top officers of a company. The no-fault component of the rule is new: Even if an executive had no role in their organization’s misstatement of finances, their excess compensation tied to meeting performance or revenue goals now could be subject to recovery.

In restatement processes, some areas for repayment like performance-based bonuses should be apparent, but retirement plan contributions and payments based on stock-price changes could slip through the cracks. The risk for litigation, according to Conway, makes it important for businesses to be thorough.

“Given the complexity, it’s important to work with outside counsel,” she said. “It’s also helpful to make sure that you’re correctly calculating what’s subject to recovery.”

To ensure that its executives are aware of the new clawback rules, IBM’s legal team added language regarding recovery and repayment provisions to its equity award agreements, McNamara said.

3. Prepare for a future that may not include noncompetes.

The Federal Trade Commission’s recent ruling to end noncompetes is set to take effect in September, but there have been legal challenges to the agency’s authority. From the major questions doctrine to the rule’s retroactivity, every matter of the potential ban is up for debate.

“There’s a good chance that the rule never goes into effect, but it’s definitely important to take very close note of it. On the state level, there is much more momentum to act,” Conway said.

If the ban were to be enforced, it would prohibit any term or condition of employment that intends to prevent a worker from seeking other work once they have left a company. While the rule would be retroactive, an exception applies to a limited group of senior executives who serve in policymaking positions and whose compensation exceeds $150,000 annually.

According to Conway, one of the most significant portions of the new rule impacts noncompetes tied to the sale of a business.

“The final rule does not apply to noncompetes entered into by a person pursuant to a bona fide sale of a business entity, sale of the person’s ownership interest in a business entity or all or substantially all of the business’s operating assets,” Conway said. “That raises a question of how small an ownership might be sufficient. Is it so broad that you could cover somebody with just a small interest in equity of a public company? As the rule is currently drafted, it doesn’t actually impose any sort of threshold.”

For IBM, which has acquired several companies — including many in California where a sale-of-business exception to prohibitions on noncompetes has existed for some time — not having a threshold is important for protecting the good will of businesses that they purchase McNamara said.

Given the litigation challenges, companies do not have to alter their existing practices right now, Conway said, but they can engage in certain activities to prepare for the future:

  • Review restrictive covenants, assess how broadly they apply and consider which ones are necessary.
  • Evaluate “blue pencil” provisions.
  • Include acknowledgements of senior executive status in new noncompetes.
  • Strengthen non-solicit, confidentiality and intellectual property (IP) covenants.
  • Review overall compensation plan structures to ensure they are designed to give employees incentives to stay.

“Once the IP walks out the door and someone starts work the next day for somebody, the only real method [for relief] is an injunction. If the injunction isn’t granted, there’s no equitable relief that can get the IP back. The damage is done,” McNamara said. “The noncompete is a nice way for people to sit out for a period so their information becomes stale. A reasonable rule, even if it applies to a level of technical talent you need to protect . . . would be much more palatable to the business community.”

Visit the eCornell website to watch the full Keynote “Executive Pay in the Spotlight: Perks, Noncompetes and More,” one webcast in a multipart series leading up to the Cornell Tech Board of Directors Forum. The immersive forum will prepare you for today’s most urgent opportunities and challenges in board governance, including AI and other developing technologies. Learn more and register.