<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Shamil Zhumatov/Reuters</span></p><p class="caption">Russian Tu-95 bombers during a Kazakh-Russian military exercise at Otar military range, some 100 miles west of Almaty, October 3, 2008.</p></div><p></p></div></div></p><ul><li><strong>Russia is preparing for what officials there have called the country's largest military exercise since the Cold War.</strong></li><li><strong>China and Mongolia are also joining, both for the first time.</strong></li><li><strong>The US plans to monitor the exercises seeing them as "strategic messaging" by Moscow and Beijing.</strong></li></ul><p>On Friday, two US F-22 Raptor fighter jets <a href="https://www.businessinsider.com/r-us-f-22-jets-escort-russian-strategic-bombers-over-arctic-ocean-ifax-2018-9" target="_blank" rel="noopener">intercepted</a> two Russian nuclear-capable Tu-95MC strategic bombers flying over the Arctic Ocean, escorting them for part of their journey over the waters of the Arctic and the Bering and Okhotsk seas.</p><p>The US planes tracked the Russian bombers until they left the area, flying west over the Aleutian Islands.</p><p>A <keyword id="6354810" type="UNKNOWN" weightage="100" keywordseo="defense">defense</keyword> official <a href="https://freebeacon.com/national-security/russian-nuclear-bombers-intercepted-near-alaska-2/" target="_blank" rel="noopener">told</a> The Washington Free Beacon that the bombers may have been practicing for a cruise-missile strike on US missile-defense sites and radars in Alaska - which may be a feature of the Russia's upcoming massive Vostok-18 exercise that Russian officials have said will be <a href="https://www.businessinsider.com/russia-preps-for-vostok-2018-military-exercise-amid-tensions-with-nato-2018-8" target="_blank" rel="noopener">the largest such drill</a> since the Cold War.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Russian Ministry of Defense</span></p><p class="caption">Russian armored vehicles participating in Zapad-2017 exercises.</p></div><p></p></div></div></p><p>Russian troops have already undergone "snap inspections" in preparation for the exercise, the active portion of which will take place between September 11 to September 17, Russian Defense Minister Sergei Shoigu <a href="http://tass.com/defense/1019876" target="_blank" rel="noopener">said this week</a>, according to Russian state-media outlet Tass.</p><p>Exercises will take place at five ground testing areas and four aerial testing areas over the Sea of Japan and the Bering and Okhotsk seas.</p><p>"Aircraft have been flying maximum range sorties with refueling in flight and practicing landings at tactical airfields. Naval ships have been performing combat maneuvering and firing practices," Shoigu said, according to Tass.</p><p>Shoigu said in late August that about <a href="https://www.businessinsider.com/russia-preps-for-vostok-2018-military-exercise-amid-tensions-with-nato-2018-8" target="_blank" rel="noopener">300,000 Russian personnel and 1,000 aircraft</a>, including drones, would take part, adding <a href="http://tass.com/defense/1019876" target="_blank" rel="noopener">this week</a> that "up to 80 combat and logistics ships and up to 36,000 tanks, armored personnel carriers and other vehicles" will be involved.</p><p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Thomson Reuters</span></p><p class="caption">Russian servicemen take part in the Zapad-2013, or West-2013, war games on Russia's Baltic Sea coast, September 26, 2013.</p></div><p></p></div></div></span></p><p><span>Valery Gerasimov, the head of Russia's general staff, <a href="http://tass.com/defense/1020244" target="_blank" rel="noopener">said Thursday</a> that 21 formations had been mobilized in 10 regions for the exercise, the main purpose of which, he said, "is to check the level of training that can be assessed only in an exercise of proper scale."<br /></span></p><p><span>"This exercise, to be held on the bilateral basis, will be the strictest test of combat skills and the military districts' readiness for ground, air and naval operations," he added.<br /></span></p><p><span>"Involved in the exercise will be forces from the Eastern and Central federal districts, the Northern Fleet, and Airborne Forces, as well as long-range, military transport and tactical aircraft of Russia's Aerospace Force," Gerasimov said, according to Tass.</span></p><p><span>Gerasimov also said that Chinese and Mongolian personnel will take part "side by side" with Russian forces.</span></p><p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>REUTERS/Stringer</span></p><p class="caption">Chinese armed police and Russian national guards take part in a joint counter-terrorism drill in Yinchuan in China's Ningxia Hui Autonomous Region, December 5, 2017.</p></div><p></p></div></div></span></p><p><span>Shoigu said this week that up to 3,500 Chinese army personnel would be involved "in the main scenario at the Tsugol proving ground" in Russia's Eastern Military District.</span></p><p><span>China's involvement has <a href="https://www.businessinsider.com/russian-vostok-18-war-games-will-include-china-for-the-first-time-2018-8" target="_blank" rel="noopener">elicited surprise</a>, given that Vostok, or East, has long been seen as Moscow's preparation for a potential conflict with Beijing. China and Russia have done joint drills before, but this appears to be the first time Beijing has taken part in the Vostok exercise.</span></p><p><span>China "is now being invited to join as a friend and even a quasi-ally," Alexander Gabuev, a China expert at the Carnegie Moscow Center, <a href="https://www.nytimes.com/2018/08/28/world/europe/russia-military-drills.html" target="_blank" rel="noopener">told The New York Times</a> in August.</span></p><p><span>The exercise is also expected to include simulated nuclear-weapons attacks, US officials <a href="https://freebeacon.com/national-security/chinese-military-joining-russians-nuclear-war-games/" target="_blank" rel="noopener">told The Free Beacon</a>. A Pentagon official said the US would watch the war games closely, calling them "strategic messaging" by both China and Russia.</span></p><p><span><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Reuters/Alexei Druzhinin/RIA Novosti/Kremlin</span></p><p class="caption">Chinese President Xi Jinping and Russian President Vladimir Putin at a ceremony to open Chinese-Russian joint naval drills in Shanghai, May 20, 2014.</p></div><p></p></div></div></span></p><p><span>Mongolia is also participating for the first time, and contingents from there and China are "completing coordination and adjustment at the Tsugol proving ground," Gerasimov said, referring to an area near the eastern intersection of the three countries' borders - where Gabuev <a href="https://www.nytimes.com/2018/08/28/world/europe/russia-military-drills.html" target="_blank" rel="noopener">suggested</a> they might be restricted so Russian troops elsewhere could train for a potential clash with China.</span></p><p><span>NATO has also criticized the exercise, with a spokesman for the alliance <a href="https://www.businessinsider.com/russia-preps-for-vostok-2018-military-exercise-amid-tensions-with-nato-2018-8" target="_blank" rel="noopener">saying</a> it "fits into a pattern we have seen over some time: a more assertive Russia, significantly increasing its defense budget and its military presence."</span></p><p><span>Russia's deputy defense minister, Col-Gen. Alexander Fomin <a href="http://tass.com/defense/1020233" target="_blank" rel="noopener">said</a> this week that the upcoming drills "lacked the slightest traces" of "anti-NATO bias or aggressiveness." </span></p><p><span>Fomin also said Russian military personnel had been briefed on security and safety measures in accordance with Moscow's agreements with neighboring countries, including the US.</span><span></span></p>    <div class="margin-top">        <h3>NOW WATCH: <a href="https://www.businessinsider.com/timothy-snyder-russia-not-as-strong-as-you-think-2018-4">Why Russia may not be as strong as most people think</a></h3>        <div>                    </div>    </div>

Russia is gearing up for its biggest war game since the Cold War - here's what Moscow says is planned

<p></p><div class="KonaFilter image-container float_right"><div class="image on-image"></div></div>If - or when - the zombie apocalypse comes, those of us in big cities are in trouble, according to <a href="http://meeting.aps.org/Meeting/MAR15/Session/S48.8">research presented</a> at the American Physical Society March meeting on March 5, 2015.<p>Starting in a big city like New York or Atlanta would mean you are basically screwed from the start if the epidemic had already hit there, according to Alex Alemi, a graduate student at Cornell University and part of the research team.</p><p>You are much better off starting&#xa0;further away from people, they say, which gives you a better chance of avoiding infection. Ideally, you'd escape to an almost empty region like the Rocky Mountains.</p><p>"I'd love to see a fictional account where most of New York City falls in a day, but upstate New York has a month or so to prepare," Alemi said&#xa0;in the <a href="http://www.eurekalert.org/pub_releases/2015-02/aps-zos022715.php">APS press release</a>.</p><p>Thanks, Alex. Though I've always wondered, if you could make it onto a boat in such a scenario, how long would you survive at sea? We are closer to water here in NYC, after all. Can zombies swim, or do they just wade through the waters?</p><h2>Authentic disease modeling</h2><p>Alemi and colleagues <a href="http://arxiv.org/pdf/1503.01104v1.pdf">used standard disease models to estimate</a> the zombie infection rate around the US, assuming that humans would need to be infected by a zombie bite (of course). Also following standard protocol, zombies travel only by walking and wouldn't die naturally but would need to be "killed," presumably with a well-placed blow to the head.</p><p>Essentially, they used a realistic model that's very similar to the way epidemiologists calculate the spread of other viruses, but using fictional parameters unique to zombies. They did make some assumptions, including a transportation infrastructure collapse. It's hard to imagine airports staying operational for long in such a scenario.</p><p>The video below shows how a national outbreak would play out. The top right map, susceptible humans, shows the human population that's still able to be infected. In the green bottom right map, the "killed" zombie population grows, but as you can see in the red bottom left map, so does the infected population. The top left is a composite map of the other three.</p><p><div></div></p><p class="embed-spacer">&#xa0;</p><p>As you can see the Rockies are the safest place to be in this fictional scenario - sparsely populated and difficult to reach.</p><p>And big population centers are the worst place to start the outbreak.&#xa0;About 28 days later (<a href="http://www.imdb.com/title/tt0289043/">coincidence?</a>), they become safer as the areas that surround them become more dangerous.</p><p>Though of course, as Terrence McCoy <a href="http://www.washingtonpost.com/news/morning-mix/wp/2015/03/04/scientists-determine-the-nations-safest-places-to-ride-out-a-zombie-outbreak/?tid=sm_fb">pointed out at the Washington Post</a>, if a large percentage of the population flooded any area, the risk of infection there would skyrocket.</p><p>The statistical research was inspired by a reading of Max Brooks's "<a href="http://www.amazon.com/World-War-Oral-History-Zombie/dp/0307346617/ref=tmm_pap_title_0">World War Z</a>", a book that is better than the movie that was based on it.</p><h2>How it works</h2><p>Alemi and co-authors&#xa0;modeled out the population centers of the country and then assumed certain possible interactions, with an element of randomness. A zombie might bite and infect a human or the person might escape or kill the creature. And of course, the undead shamble onward.</p><p>Also, in reality, an outbreak probably wouldn't start all over the country, and there are some variables. The undead might be more or less aggressive or more or less mobile.</p><p>So the research team <a href="http://mattbierbaum.github.io/zombies-usa/">built an interactive model</a> that allows you to simulate an outbreak, picking a starting point, a zombie-bite to zombie-kill ratio, and whether the zombies are fast or slow.</p><p>As you can see in the GIF below, a fast-zombie outbreak in New York City would be devastating within 24 hours.</p><p></p><div class="KonaFilter image-container display-table full"><div><div class="image on-image"></div></div></div>Not looking good. More complex variables would be interesting though.<p><span>"Given the time, we could attempt to add more complicated social dynamics to the simulation, such as allowing people to make a run for it, include plane flights, or have an awareness of the zombie outbreak, etc.," Alemi said in the press release.</span></p><p>&#xa0;Physicists seemed to want to be prepared. The talk was <a href="https://twitter.com/BiophysicsFL/status/573506826311880704">reportedly standing-room</a> only.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/why-processed-meat-might-give-you-cancer-2015-10">What processed meat really is - and why it could give you cancer</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="c3YzZmeDqcBuXeWiAl0FAcN-8oP3c5gQ" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

If the zombie apocalypse happens, scientists say you should head for the hills

<p class="p1"><span class="s1"><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Good morning! Here's what you need to know. </span></p>
<p class="p1"><span class="s1"><strong>Chinese Inflation Is At A 5-Year Low.</strong> China's annual consumer inflation remained at a near <a href="http://uk.businessinsider.com/r-chinas-october-inflation-steady-at-16-percent-year-on-year-2014-11">5-year low in October at 1.6%</a>. </span></p>
<p class="p1"><span class="s1"><strong>South Korea And China May Have A Trade Deal. </strong>South Korea said it has <a href="http://uk.businessinsider.com/south-korea-effectively-reaches-trade-deal-with-china-2014-11">"effectively" reached a free trade agreement with China</a> that will remove or sharply reduce barriers to trade and investment between the two global trade giants. <span class="s2"><a href="http://uk.businessinsider.com/south-korea-effectively-reaches-trade-deal-with-china-2014-11"><br /></a></span></span></p>
<p class="p1"><span class="s1"><strong>An Overwhelming Number Of Catalans Voted For Independence.</strong> Nearly <a href="http://uk.businessinsider.com/81-of-catalans-vote-to-secede-from-spain-in-symbolic-referendum-2014-11">81% of 2.25 million Catalans who participated in a simulated referendum Sunday said they wanted autonomy</a> from Spain, according to preliminary results.</span><span style="line-height: 1.5em;"> </span></p>
<p class="p1"><span style="line-height: 1.5em;"><strong>Russia Signed Another Big Gas Deal With China.</strong> The Russian and Chinese governments have <a href="http://www.ft.com/cms/s/0/79eeabb0-6888-11e4-acc0-00144feabdc0.html#axzz3IeCww9pa">signed another significant gas deal</a>, after an earlier agreement this year, according to the Financial Times. </span></p>
<p class="p1"><span class="s1"><strong>Heavy Shelling Picked Up Again In East Ukraine.</strong> Shelling around the eastern Ukrainian city of Donetsk <a href="http://www.businessinsider.com/heavy-shelling-in-east-ukraine-threatens-the-countrys-fragile-ceasefire-2014-11#ixzz3Ie7d4MSl">increased strains on a two-month-old ceasefire</a> between Ukrainian government forces and pro-Russian separatists on Sunday. </span></p>
<p class="p1"><span class="s1"><strong>Samsung Is About To Invest $3 Billion (£1.89 Billion) In Vietnam.</strong> A subsidiary of South Korea's Samsung will be <a href="http://uk.businessinsider.com/r-chinas-october-inflation-steady-at-16-percent-year-on-year-2014-11">awarded a license to invest $3 billion in a mobile phone plant in northern Vietnam</a>, the second such facility in the country, a state-run newspaper said on Monday. <span class="s2"><span style="line-height: 1.5em;"> </span></span></span></p>
<p class="p1"><span class="s1"><strong>American Airlines Staff Rejected A Contract.</strong> American Airlines flight attendants <a href="http://www.businessinsider.com/r-american-airlines-attendants-reject-contract-by-16-votes-2014-11#ixzz3Ie9n9zb0">narrowly rejected a joint labour contract on Sunday</a>, in a defeat following the merger of American and the former US Airways last year. </span></p>
<p class="p1"><span class="s1"><strong>Panasonic Is Considering Expansion In Europe.</strong> Japanese electronics conglomerate Panasonic Corp is <a href="http://www.businessinsider.com/r-panasonic-ceo-says-considering-white-goods-ma-in-europe-2014-11#ixzz3IeDeyEHs">considering M&amp;A deals as a way to bolster its position in the European white goods market</a>, its chief executive said on Monday.</span></p>
<p class="p1"><span style="line-height: 1.5em;"><strong>European Investor Confidence Figures Are Coming.</strong> Sentix investor confidence figures are out at 9.30 a.m. GMT, with analysts expecting a modest improvement in November's headline figures.</span></p>
<p class="p1"><span class="s1"><strong>Hong Kong And Shanghai's Stock Exchanges Are About To Get A link.</strong> A delayed trading link between Hong Kong and Shanghai's stock exchanges <a href="http://www.businessinsider.com/afp-hong-kong-shanghai-stock-link-to-start-november-17-2014-11#ixzz3IeC6CGcu">will start on Nov. 17</a>, the Hong Kong exchange announced Monday.<a href="http://www.businessinsider.com/afp-hong-kong-shanghai-stock-link-to-start-november-17-2014-11#ixzz3IeC6CGcu"><br /></a></span></p>

10 Things You Need To Know Before European Markets Open

<p><em><span style="font-weight: 400;">The </span></em><a href="http://www.businessinsider.com/insiderpicks"><em><span style="font-weight: 400;">Insider Picks</span></em></a><em><span style="font-weight: 400;"> team writes about stuff we think you'll like. Business Insider may receive a commission from The Points Guy Affiliate Network.</span></em></p><p><a href="https://creditwise.capitalone.com/home" target="_blank" rel="noopener"><em><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Credit Wise</span></p></div><p></p></div></div></em></a></p><ul class="summary-list"><li style="font-weight: 400;"><strong><a href="https://www.wsj.com/articles/want-a-higher-credit-score-soon-your-cash-could-help-1540123200?mod=hp_lead_pos5" target="_blank" rel="noopener">FICO announced a new credit scoring model</a> that could result in a credit score increase for 33 million Americans.</strong></li><li style="font-weight: 400;"><strong>To find out whether or not your credit is on the rise, you'll need to start monitoring your credit score.</strong></li><li style="font-weight: 400;"><strong>Here are five credit cards that offer free credit score monitoring services - and lucrative rewards, whether you're looking for travel points or cash back.</strong></li></ul><p><span style="font-weight: 400;">Credit scores are crucial to your financial health. While an excellent credit score - 800 or above - will save you thousands of dollars on a mortgage or auto loan, a bad credit score can wreck your dreams of purchasing a house or car at all.</span></p><p><span style="font-weight: 400;">Luckily, credit scores aren't forever. </span><span style="font-weight: 400;">It's always possible to build or rebuild your credit - and thanks to a new credit scoring model from FICO, a jump in your score may come sooner rather than later. But you'll need to get on board with a trustworthy credit monitoring service if you really want to commit to joining the 800 club.</span></p><h2><strong>Will your credit score increase this year?</strong></h2><p><span style="font-weight: 400;"><a href="https://www.cbsnews.com/news/new-fico-score-millennials-could-be-big-winners/" target="_blank" rel="noopener">Roughly 40% of credit applicants</a> could see a jump in their credit scores of 20 points or more this year. </span></p><p><span style="font-weight: 400;">That's all thanks to a <a href="https://www.fico.com/en/newsroom/experian-fico-and-finicity-launch-new-ultrafico-credit-score&amp;sa=D&amp;ust=1548689588142000&amp;usg=AFQjCNG_Soc27VpqCO0RIH5fJ7fyn9RmFQ" target="_blank" rel="noopener">new credit scoring model called the UltraFICO</a>, which will take into account your banking data - everything from your checking account activity to your savings and money market accounts.</span></p><p><span style="font-weight: 400;">Set to pilot in early 2019, this new model should expand access to credit, particularly for Americans who are bordering on good credit or have no credit at all. This means that if your credit score is in the upper 500s or 600s, or if you have a short or non-existent credit history, <a href="https://www.fool.com/the-ascent/credit-cards/blog/33-million-americans-could-soon-see-their-credit-score-jump/" target="_blank" rel="noopener">you could find yourself suddenly on the way to a good FICO score</a> - 670 or greater. </span></p><p><span style="font-weight: 400;">That is, of course, as long as you've been responsible with your bank accounts. That means no late payments, overdrafts, or delinquent accounts.</span></p><p><span style="font-weight: 400;">Going from no credit or bad credit to good credit can open a lot of doors for you financially. If you're currently in debt, your newfound credit score might give you some leverage to negotiate a lower interest rate or refinance your debt at a lower rate. If you plan to borrow money in the near future - whether to purchase a car or a home or to invest in your new business - it's important to get your credit score up in order to qualify for the lowest rates available. </span></p><p><span style="font-weight: 400;">Even if you're debt-free and have no plans to borrow money in the future, good credit gives you access to some of the best rewards credit cards. Taking advantage of these can save you hundreds of dollars per year in the form of cash back or free travel. Regardless of your financial situation, credit is important in today's world.</span></p><p><em><span style="font-weight: 400;"><strong>Read more</strong>: <a href="https://www.businessinsider.com/why-you-should-use-credit-cards-2018-1" target="_blank" rel="noopener">Using credit cards is actually really important for your overall financial health - here's why</a></span></em></p><p><a href="https://www.wsj.com/articles/want-a-higher-credit-score-soon-your-cash-could-help-1540123200?mod=hp_lead_pos5" target="_blank" rel="noopener"><span style="font-weight: 400;"><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>iStock</span></p></div><p></p></div></div></span></a></p><h2><strong>How to monitor your credit score</strong></h2><p><span style="font-weight: 400;">The best way to improve or maintain your credit score is to closely monitor it. This gives you a better understanding of which financial habits cause your score to go up or down. </span></p><p><span style="font-weight: 400;">Many people assume that checking their credit too frequently will drag their score down, but this is actually a myth. Hard inquiries can harm your credit score, but these are inquiries into your credit report that are performed by a potential lender when you apply for a loan or line of credit. When you check your credit report yourself, that's called a soft inquiry, and it won't affect your credit at all.</span></p><p><span style="font-weight: 400;">If it's been a while since you've peeked at your credit, you might want to start by checking your full credit history to get a sense of where you're at financially. Thanks to government regulations, you're entitled to one free credit report from each of the three major credit bureaus every year. All you have to do is go to <a href="https://www.annualcreditreport.com/index.action" target="_blank" rel="noopener">AnnualCreditReport</a>, where you can request all three free credit reports once every 12 months.</span></p><p><span style="font-weight: 400;">While all consumers should do this on an annual basis, it's also important to monitor your credit throughout the year - ideally on a monthly or weekly basis. Not only will this help you keep track of changes in your credit score, but it will also keep you in the loop if any bad marks or suspicious activity show up on your credit report. </span></p><p><span style="font-weight: 400;">You can pay for a monthly subscription to a credit monitoring service, but the best things in life are free. If you want to </span><span style="font-weight: 400;">track your credit without paying a monthly fee, get a credit card that offers free credit scores.</span></p><p><span style="font-weight: 400;"><strong><em>Read more</em></strong><em>: </em><em><a href="https://www.businessinsider.com/how-credit-cards-affect-your-credit-score" target="_blank" rel="noopener">Here's how to collect valuable credit card sign-up bonuses while helping your credit score</a></em></span></p><h2><strong>The best no-annual-fee credit cards that offer free credit scores</strong></h2><p><a href="https://thepointsguy.com/card-details/capital-one-quicksilver-cash-rewards-credit-card/?utm_campaign=bi_ea_012819_how-to-improve-credit-score&amp;utm_source=referral" target="_blank" rel="noopener"><strong><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Capital One</span></p></div><p></p></div></div></strong></a></p><p><span style="font-weight: 400;">A number of credit cards now provide cardholders with free credit score monitoring. All you have to do is log into your cardholder account, and you'll have access to your credit score.</span></p><p><span style="font-weight: 400;">Here are our favorite credit cards with no annual fee that give you free access to your credit score.</span></p><h3><strong>For flat-rate cash back: <a href="https://thepointsguy.com/card-details/capital-one-quicksilver-cash-rewards-credit-card/?utm_campaign=bi_ea_012819_how-to-improve-credit-score&amp;utm_source=referral" target="_blank" rel="noopener">Capital One Quicksilver Cash Rewards Credit Card</a></strong></h3><ul><li style="font-weight: 400;"><span style="font-weight: 400;">CreditWise credit monitoring</span></li><li style="font-weight: 400;"><span style="font-weight: 400;">$150 cash bonus when you spend $500 in the first three months</span></li><li style="font-weight: 400;"><span style="font-weight: 400;">Earn 1.5% cash back on all purchases</span></li></ul><p><span style="font-weight: 400;">Capital One makes it easy for you to check and monitor your credit score anywhere, at any time. Simply log into your cardholder account on mobile or desktop, and you'll have access to Capital One's credit monitoring service CreditWise.</span></p><p><span style="font-weight: 400;">Not only will <a href="https://creditwise.capitalone.com/home" target="_blank" rel="noopener">CreditWise give you access to your credit score for free</a>, but the app will also track your credit report and social security number. You'll get credit alerts each time your TransUnion credit report changes so you can stay on top of your finances and protect your credit. The app even includes a simulator that lets you see the potential impact any given financial decision could have on your credit score.</span></p><p><span style="font-weight: 400;">On top of this, the <a href="https://thepointsguy.com/card-details/capital-one-quicksilver-cash-rewards-credit-card/?utm_campaign=bi_ea_012819_how-to-improve-credit-score&amp;utm_source=referral" target="_blank" rel="noopener">Quicksilver from Capital One</a> card comes with a generous cash sign-up bonus and 1.5% flat-rate cash back on all purchases - all at no annual fee.</span></p><h3><strong>For consistent earning: <a href="https://thepointsguy.com/card-details/discover-it-miles/?utm_campaign=bi_ea_012819_how-to-improve-credit-score&amp;utm_source=referral" target="_blank" rel="noopener">Discover it® Miles</a></strong></h3><ul><li style="font-weight: 400;"><span style="font-weight: 400;">Get your FICO Credit Score for free</span></li><li style="font-weight: 400;"><span style="font-weight: 400;">Earn 1.5x miles on every dollar spent</span></li><li style="font-weight: 400;"><span style="font-weight: 400;">Discover will match all the miles you earn in the first year</span></li><li style="font-weight: 400;"><span style="font-weight: 400;">Miles are worth 1¢ each toward travel</span></li></ul><p><span style="font-weight: 400;">Discover lets cardholders see their FICO Score each month on their monthly statement, allowing you to track your score over time and see whether or not it's increasing. This statement comes with a <a href="https://www.discover.com/credit-cards/fico-score-free/" target="_blank" rel="noopener">credit Scorecard that explains how different factors are impacting your score</a>. You can also sign up to <a href="https://www.discover.com/credit-cards/member-benefits/security/ssn-newaccount-alerts/" target="_blank" rel="noopener">receive free social security number alerts and notifications</a> if new accounts are opened on your Experian credit report.</span></p><h3><strong>For balance transfers: <a href="https://www.americanexpress.com/us/credit-cards/card/amex-everyday/" target="_blank" rel="noopener">Amex EveryDay Credit Card</a></strong></h3><ul><li style="font-weight: 400;"><span style="font-weight: 400;">MyCredit Guide credit monitoring</span></li><li style="font-weight: 400;"><span style="font-weight: 400;">$0 balance transfer fee on balance transfers requested within the first 60 days</span></li><li style="font-weight: 400;"><span style="font-weight: 400;">0% intro APR on balance transfers for the first 15 months (then variable APR rate of 15.24% to 26.24% applies)</span></li><li style="font-weight: 400;"><span style="font-weight: 400;">10,000 Membership Rewards points if you spend $1,000 in the first three months</span></li><li style="font-weight: 400;"><span style="font-weight: 400;">Earn 2 points per $1 spent at US supermarkets on up to $6,000 per year</span></li></ul><p><span style="font-weight: 400;">American Express cardholders get access to the <a href="https://www.americanexpress.com/us/credit-cards/features-benefits/free-credit-score/?inav=footer_credit_score" target="_blank" rel="noopener">American Express MyCredit Guide</a>, which provides weekly credit updates, a credit score simulator, and credit alerts to help you detect identity fraud. You'll also get a detailed copy of your TransUnion credit report.</span></p><p><span style="font-weight: 400;">In addition to free credit score monitoring, the Amex EveryDay Credit Card offers one of the best balance transfer offers on the market. If you're looking to pay off debt using a balance transfer, the $0 balance transfer fee makes this card worth considering - especially because you'll want to continue tracking your credit score as you pay down debt.</span></p><p><span style="font-weight: 400;">You'll even earn rewards at a rate that's pretty generous for a balance transfer credit card with no annual fee. American Express's flexible </span><a href="https://www.businessinsider.com/american-express-membership-rewards-2011-11" target="_blank" rel="noopener"><span style="font-weight: 400;">Membership Rewards program</span></a><span style="font-weight: 400;"> is great for folks who want to save money on travel because the points you earn can be transferred to a long list of travel partners.</span></p><h2><strong>Earn bigger rewards and track your credit score with these credit cards</strong></h2><p><a href="https://thepointsguy.com/card-details/blue-cash-preferred-card-from-american-express/?utm_campaign=bi_ea_012819_how-to-improve-credit-score&amp;utm_source=referral" target="_blank" rel="noopener"><strong><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Getty</span></p></div><p></p></div></div></strong></a></p><p><span style="font-weight: 400;">If you already have good credit and want to maximize your rewards potential, there are a number of lucrative rewards credit cards that allow you to monitor your credit score while earning free flights and cash bonuses. </span></p><p><span style="font-weight: 400;">These higher-earning rewards credit cards do come with an annual fee. However, the benefits associated with them usually make up for the cost.</span></p><p><strong>If you're hoping that padding your wallet with some hotel points and airline miles will bring a few more vacations your way this year, the <a href="https://thepointsguy.com/card-details/capital-one-venture-rewards-credit-card/?utm_campaign=bi_ea_012819_how-to-improve-credit-score&amp;utm_source=referral" target="_blank" rel="noopener">Capital One Venture Rewards Credit Card</a> is worth considering.</strong></p><p><span style="font-weight: 400;">This credit card charges a reasonable $95 annual fee, and it's even waived the first year. It also offers one of the best sign-up bonuses on the market: 50,000 bonus miles - worth $500 in travel spending - if you spend $3,000 in the first three months. </span></p><p><span style="font-weight: 400;">All Capital One credit cards come with access to CreditWise, a free credit monitoring service that sends credit alerts when there are changes to your file.</span></p><p><strong>If you prefer the ease of cash back, the <a href="https://thepointsguy.com/card-details/blue-cash-preferred-card-from-american-express/?utm_campaign=bi_ea_012819_how-to-improve-credit-score&amp;utm_source=referral" target="_blank" rel="noopener">Blue Cash Preferred® Card from American Express</a> will get you a higher cash-back rate than credit cards with no annual fee. </strong></p><p><span style="font-weight: 400;">Although it charges a $95 annual fee, you'll get 6% cash back at US supermarkets up to $6,000 (then 1%), 3% cash back at US gas stations, and 1% cash back on all other purchases. The <a href="https://thepointsguy.com/card-details/blue-cash-preferred-card-from-american-express/?utm_campaign=bi_ea_012819_how-to-improve-credit-score&amp;utm_source=referral" target="_blank" rel="noopener">Blue Cash Preferred Card</a> also comes with a $200 statement credit if you spend $1,000 in the first 3 months. </span></p><p><span style="font-weight: 400;">All American Express credit cards offer the MyCredit Guide service so you can check your credit score each week. This feature also allows you to sign up for credit alerts and a free copy of your credit report.</span></p><p><span style="font-weight: 400;">Choosing the best credit card for you depends on your financial goals and spending habits. While some people manage to squeeze a lot of value out of travel rewards, others prefer the simplicity of earning cash back that can be used for anything.</span></p><p><span style="font-weight: 400;">Knowing your credit score and monitoring it regularly, however, is universally beneficial. If you don't already have a credit card that offers free credit scores, it's time to get one.</span></p><h3><a href="https://thepointsguy.com/card-details/discover-it-miles/?utm_campaign=bi_ea_012819_how-to-improve-credit-score&amp;utm_source=referral" target="_blank" rel="noopener">Click here to learn more about the Discover it Miles from Insider Picks' partner: The Points Guy.</a></h3><h3><a href="https://thepointsguy.com/card-details/capital-one-quicksilver-cash-rewards-credit-card/?utm_campaign=bi_ea_012819_how-to-improve-credit-score&amp;utm_source=referral" target="_blank" rel="noopener">Click here to learn more about the Capital One Quicksilver Cash Rewards Credit Card from Insider Picks' partner: The Points Guy.</a></h3><h3><a href="https://thepointsguy.com/card-details/capital-one-venture-rewards-credit-card/?utm_campaign=bi_ea_012819_how-to-improve-credit-score&amp;utm_source=referral" target="_blank" rel="noopener">Click here to learn more about the Capital One Venture Rewards Credit Card from Insider Picks' partner: The Points Guy.</a></h3><h3><a href="https://thepointsguy.com/card-details/blue-cash-preferred-card-from-american-express/?utm_campaign=bi_ea_012819_how-to-improve-credit-score&amp;utm_source=referral" target="_blank" rel="noopener">Click here to learn more about the AmEx Blue Cash Preferred from Insider Picks' partner: The Points Guy.</a></h3><p class="tagline"><a href="http://e.businessinsider.com/join/ci/insider-picks">Subscribe to our newsletter.</a><br><br>Find all the best offers at our <a href="https://coupons.businessinsider.com/">Coupons page</a>.<br><br>Disclosure: This post is brought to you by the <a href="http://www.businessinsider.com/insiderpicks">Insider Picks</a> team. We highlight products and services you might find interesting. If you buy them, we get a small share of the revenue from the sale from our commerce partners. We frequently receive products free of charge from manufacturers to test. This does not drive our decision as to whether or not a product is featured or recommended. We operate independently from our advertising sales team. We welcome your feedback. Email us at insiderpicks@businessinsider.com.</br></br></br></br></p>

5 credit cards that offer free credit scores - and lucrative rewards

<p></p><div class="KonaFilter image-container display-table float_right"><div><div class="image on-image"></div><p></p></div></div>Apple unveiled its biggest, most powerful iPad last week. But it's doubtful the iPad Pro will produce a second renaissance for the tablet genre, <a href="http://www.wsj.com/articles/why-tablets-are-the-future-of-computing-1442203331">as The Wall Street Journal's Christopher Mims suggests</a>.<p>Given the iPad Pro's extra productivity features - a keyboard, a pressure-sensing stylus, and processors that make it more powerful than 80% of notebook computers shipped last year - Mims argues we've reached "a weird moment in computing history when every major desktop and mobile OS, with the notable exception of Mac OS, will be competing on devices with the same ultra tablet form factor."</p><p>It's true, computers in general keep getting thinner - and soon, it's not difficult to imagine lots of people&#xa0;owning computers as thin and&#xa0;light as tablets, or tablets as powerful as computers.</p><p>Mims believes tablets and laptops will soon be indistinguishable, since you can easily connect peripherals to help you do work on your tablet that's traditionally performed&#xa0;on a desktop or laptop computer.</p><p>The iPad Pro is aimed at creative and working professionals, since it has the mobility&#xa0;and flexibility of an iPad but the power of a desktop computer. But it might not appeal to the mainstream crowd just yet since it's not yet cheaper or better than a laptop in many ways, and it's far too big and heavy to be a one-handed device (it's the heaviest iPad since the first-generation iPad).</p><p>But even if the iPad Pro were cheaper, it still wouldn't be the future of computing.</p><p>Of course, there needn't be only one way to get to the "future of computing." But more so than tablets, I'm putting my money on virtual and augmented reality.</p><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div>Instead of looking at flat displays, VR and AR completely engrosses&#xa0;our eyes&#xa0;in three-dimensional environments, which makes content significantly more captivating. And even though it's not cheap right now, lots of big tech companies like Facebook and Sony are spending billions of dollars making it more accurate and efficient.<p>We've seen the applications: The potential for AR and VR is practically limitless. You can play games, watch videos, but most importantly, create and do work using virtual elements that appear in your field of view, using the same intuitive gestures you're familiar with on smartphones and tablets. All of this has incredible potential for education, entertainment, and so much more.</p><p>Virtual and augmented reality does things normal computers - phones, tablets, laptops and desktops - can't do. You can take a field trip to another country, or another world, without leaving the classroom. You can sit courtside at a basketball game without paying thousands of dollars or traveling to a crowded arena. Doctors and patients can learn more about conditions of the human body. Soldiers&#xa0;can conceptualize and simulate better tools for flight, vehicles, and combat. Architects can design buildings in a 3D space.</p><p></p><div class="KonaFilter image-container display-table"><div><div class="image on-image"></div><p></p></div></div>Tablets can certainly emulate&#xa0;some of these things, but not nearly at the level of immersion that virtual and augmented reality can&#xa0;achieve - you'll always feel like you're holding a tablet, which reinforces this idea that&#xa0;there's a real physical barrier between you and your content. Not so with AR and VR: Instead of owning devices for every screen&#xa0;size, you can immediately adjust the screen size of any images you're looking at through your head-mounted display, just by pinching and zooming. As Microsoft demonstrates,&#xa0;you can create a "TV" on your wall, resize it, and move it around.<p><div></div></p><p class="embed-spacer">That feeling of touching your digital content - as if it's in the real world, not on the other side of a screen - is magical, emotional, and ultimately captivating.</p><p>The iPad is and will be a terrific device for many people for years to come. But with augmented and virtual reality, you won't even need any screens in your house except for the ones directly in front of your eyes. It certainly feels like the "next big thing" in technology; hopefully Apple doesn't miss out.</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/lego-dimensions-trailer-2015-7">We're finally getting a better idea about the story driving LEGO's next video game and it looks awesome</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="9leWtrdjpKnqMNR-ZPv3geVBkhfxbCP-" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

Apple may have revamped the iPad, but it's still not the future of computing

<p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span><a href="https://www.youtube.com/watch?v=w5XVq4NLnwk&amp;t=61">HTC</a></span></p></div><p></p></div></div>The hype is real.</p><p>I just tried HTC's virtual reality headset Vive, and I'm certain we're on the precipice of a major change in computing. This is going to change the world as we know it. Really.</p><p>The HTC Vive was born out of a partnership with Valve, one of the most important gaming companies in the industry: Valve runs the Steam store, which is the biggest distribution platform for online games, and the company is also famous for making several critically-acclaimed games, including the "Half-Life" series. HTC, of course, makes consumer technology products, including the gorgeous HTC One smartphone line.</p><p>So when Valve and HTC introduced the Vive at Mobile World Congress in early March, the response wasn't just "good." It was <a href="http://www.businessinsider.com/htc-vive-tryout-2015-3">overwhelmingly positive</a>. Just look at these headlines from around the web at the time:</p><p><div class="KonaFilter image-container display-table"><div><div class="image"><p class="source"><span>The Verge</span></p></div><p></p></div></div></p><p><div class="KonaFilter image-container display-table"><div><div class="image"><p class="source"><span>TechCrunch</span></p></div><p></p></div></div></p><p><div class="KonaFilter image-container display-table"><div><div class="image"><p class="source"><span>Engadget</span></p></div><p></p></div></div></p><p><div class="KonaFilter image-container display-table"><div><div class="image"><p class="source"><span>Gizmodo</span></p></div><p></p></div></div></p><p>Having just experienced the HTC Vive first-hand, I can tell you that the device truly lives up to its expectations, and then some. And this was just an early version of the headset. The final version launches later this year.</p><p>Here's a quick rundown of what I experienced:</p><ul><li>I'm ushered into a hotel room in Manhattan to test out the Vive. The windows are covered with a dark shade and all of the reflective surfaces were covered, too.</li><li>J.B. McRee, HTC's senior manager of product marketing, explains that the final consumer version of the HTC Vive won't require you to turn the lights off or cover all your reflective surfaces; they simply did this to ensure a stable VR experience for all the demos throughout the day.</li><li>I don the Vive headset and McRee throws some headphones over my ears. I'm suddenly standing in a white room with a ring of applications for games and demos floating around me.</li><li>McRee holds two symmetrical controllers, and I can see them in my white environment, just floating in the air. I instinctively grab them, and I can hold them now. The two symmetrical hand controllers are now wireless (they were wired when the Vive was introduced in March). Both controllers have small touch-sensitive pads, and triggers on the back.</li></ul><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>WEVR</span></p><p class="caption">In </p></div><p></p></div></div></p><ul><li>The demo starts, and I'm suddenly standing on an underwater shipwreck on the ocean floor. Fish are swimming around me, and I see the shadow of a manta ray cross the boat. I look up and see a small school of manta rays swim by. I turn around again and see a giant blue whale approach the ship and slow down, just to greet me. We have a small staring contest. I'm pretty sure I win because the whale swims away.</li><li>The next demo begins. Suddenly, I'm in a colorful Italian kitchen. I see a cutting board, a rolling pin, a full stove, and tons of ingredients in front of me: mushrooms, tomatoes, sriracha, and more. In the background, I see instructions to make some kind of tomato stew. So I use the trigger on my hand controllers to grab the ingredients and throw them in the pot. I'm dropping some supplies occasionally, but all in good fun. I need one more mushroom, so I open the fridge and get one. Turning around in that tiny kitchen made me feel like I was actually a chef in a restaurant, not just playing a game.</li><li>Next, I try a painting application. The environment actually looks like our hotel room, but very dark, so as to highlight the activity. A flower appears in front of me and I start using my hand controllers to paint: The right controller is my brush, and the left controller is my palette. I use the "brush" to point to the color I want on the palette, and begin painting. I draw a bunch of squiggly circles, but then I look around my drawing only to realize it's in 3D, not 2D. What looked like a simple 2D ball now actually looks like a spiral strand of DNA. I've never painted in 3D before, so this felt like an entirely novel experience.</li><li>Finally, I'm dropped into a familiar setting: The scientific testing grounds of Aperture Labs, home to Valve's "Portal" series, one of my favorite games. I walk around a small white and beige room, which looks like an office for a scientist or tinkerer. I'm asked to flip switches, open drawers, and fix a broken down robot. At one point, the walls of the room fall away and I'm standing in the center of a giant factory. It was awe-inspiring.</li></ul><p><span style="line-height: 22.5px;"><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>Matt Weinberger</span></p><p class="caption">The HTC Vive VR gives players a headset, two paddle-like controllers, and laser-emitting base stations.</p></div><p></p></div></div>Following my demo, I had a chance to sit down with Jeff Gattis, HTC's executive director for marketing and emerging devices. I had tons of questions about my experience, and how HTC and Valve hope to get this product into people's homes. Here's a brief synopsis of what I learned:</span></p><ul><li>HTC and Valve are aiming to release the Vive before year's end. That said, it's not certain if only pre-orders will be available by that time, or if the companies intend to ship the first batch of products out to customers before the start of 2016. We will learn more in October at an HTC event, apparently.</li><li>As McRee previously told me, lights and reflective surfaces won't be much of an issue for the final consumer release. HTC and Valve are taking into account that most people's living rooms also have tables and counters, as well as televisions, so they're building in smart ways for Vive users to navigate those spaces safely without bumping into furniture, or even stepping on a cat.</li><li>Vive content (games, demos, and more) will be available through the Valve VR store, but considering many developers for Facebook-owned Oculus Rift will also want to build applications for the HTC Vive, it's likely there will be other ways to download virtual reality content.</li><li>Many brands have reached out to HTC to start building applications for Vive. All the big car companies, including Mercedes, want to use the Vive to create immersive virtual reality experiences for their customers, but plenty of other huge companies, like Nike and Coca-Cola, are also getting involved early.</li><li>HTC and Valve will soon announce the PC requirements for the Vive, but both companies want to offer this experience to as many people as possible. So as HTC and Valve work on lessening the requirements for Vive to work - it's mainly about having a capable graphics processor - Gattis insists Vive will work on Windows PC, Linux, and Mac.</li></ul><p>The biggest takeaway from my talk with Gattis, however, was that Vive's potential is almost limitless.</p><p>Virtual reality experiences, or the ability to transport a person to any place at any time to experience anything you could dream of, have tons of applications in almost every major industry you can think of.</p><h3>Education</h3><p>Kids love visuals, and with virtual reality, you can take them on a field trip without ever leaving the classroom. You can also teach them things like animals, biology, and history, just by taking them to those places in virtual settings.</p><p><span style="line-height: 22.5px;"><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>HTC</span></p></div><p></p></div></div></span></p><h3><span style="line-height: 22.5px;">Entertainment</span></h3><p><span style="line-height: 22.5px;">Games are a popular application for virtual reality, but imagine being able to sit courtside at a Los Angeles Lakers game without needing to visit the Staples Center. Imagine being able to watch a live concert, in perfect 3D, without needing to stand in a mob of people. </span></p><h3><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>HTC</span></p></div><p></p></div></div>Medicine </h3><p>Doctors, researchers, and patients can learn more about the human body, particularly with regards to conditions and treatments, to improve internal practices and patient care. Plus, spending time in virtual reality I imagine is extremely therapeutic; for a period of time, you forget you're in the real world, and that immersion is helpful as a means of distraction.</p><h3>Retail </h3><p>Shopping online isn't always easy, but trying on virtual clothes, or being able to see and manipulate a product in the virtual world could be a helpful tool for making purchase decisions.</p><h3>Military</h3><p>Simulation is an important part of training, and military groups have long used virtual reality for things like flight and vehicle simulation, as well as battlefield training. As these tools improve, our soldiers will be better prepared for what's out there, and they won't need to spend money on using expensive physical tools to do so.</p><p><div class="KonaFilter image-container display-table"><div><div class="image on-image"><p class="source"><span>HTC</span></p></div><p></p></div></div></p><h3>Engineering </h3><p>As Microsoft showed off in its HoloLens demo, being able to create and manipulate 3D objects in real-time - and potentially even print out those 3D objects from a nearby printer - could have massive implications for the maker community. With fewer barriers to creation, more people can design and construct systems large and small - it could even help engineers create houses, or new forms of transportation.</p><h3>Social experiences</h3><p>Right now, the Vive is more or less a solo experience. But Gattis said HTC is certainly looking into making the virtual reality experience a social one, where you can meet and chat with people in a virtual environment, even if those people are on the other side of the globe. Some companies have even created these kinds of applications: A company called AltspaceVR, for instance, once showed me how multiple people's avatars could interact with each other in real-time, exploring virtual spaces or even just watching YouTube videos together.</p><p>Many of these virtual experiences are in development right now, but after my brief 30-minute demo with HTC, I'm convinced of VR's limitless potential. It's immersive, it's functional, it's intuitive, and it's addictive. Taking off the Vive was, dare I say it, sad. My colleague Antonio Villas-Boas tried the Vive after I did, and his reaction upon taking off the headset summed up the experience perfectly: "Well, thanks for ruining reality for me!"</p>    <div class="margin-top">        <h3>NOW WATCH: <a href="http://www.businessinsider.com/oculus-touch-hands-on-2015-6">Thanks to Facebook's virtual reality device, I've been to 'The Matrix' and all I want is to go back</a></h3>        <div>            <div>        <div class="ooyala-video-player" data-video-autoplay="false" data-video-id="N2aWNxdToU7Datf6U_2auJTmTAlAkTBB" data-player-variable="ooyalapopvideo" id="ooyalaplayer_popvideo" style="width:1280px;height:720px"></div>        </div>        </div>            </div>

I tried HTC's insane virtual reality headset, and I'm convinced the world is about to change forever

<p>When Iceland's Eyjafjallajökull volcano erupted in 2010, airline flights across the Atlantic <a href="http://knowledge.wharton.upenn.edu/article.cfm?articleid=2479">were disrupted for days</a>, and global supply chains for products like fruits and fresh flowers were severely interrupted. When a <a href="http://knowledge.wharton.upenn.edu/article.cfm?articleid=2743">tsunami and nuclear meltdown</a> hit northern Japan in 2011, automakers and electronics manufacturers in Asia and North America lamented that some key suppliers could not comply with their delivery dates, forcing slowdowns in their production scales and frustrating buyers. In these cases and others, many companies have been stymied by the fact that there was no way to forecast where and when the next natural disaster would occur.</p>
<p>What kind of analysis -- and proactive strategic initiatives -- should companies be enacting in order to mitigate their short- and long-term <keyword id="118965" type="PERSON" weightage="60" keywordseo="Supply-chain">supply chain</keyword> risks? What lessons have been learned from the turmoil of the past few years? Spurred by a sharp increase in concern about extreme weather events, leading discussion groups such as the World Economic Forum (WEF) and the Council for Supply Chain Professionals (CSCMP) have been intensifying their efforts to create comprehensive frameworks and common standards for evaluating and enacting risk-mitigation initiatives that are pro-active and strategic, rather than reactive or tactical.</p>
<p>The World Economic Forum's Supply Chain Risk Initiative in 2011 began ongoing initiatives to explore the systemic risks and vulnerabilities of global supply chains and transportation networks. Its initial report on that initiative, launched at the 2012 annual meeting of the WEF in Davos, Switzerland, examined the possibility of these risks causing serious disruptions to global supply chains, while highlighting the need for companies to shift their focus from a reactive to a proactive stance.</p>
<p>In January, the WEF published <a href="http://www3.weforum.org/docs/WEF_RRN_MO_BuildingResilienceSupplyChains_ExecutiveSummary_2013.pdf">an overall blueprint for resilient supply chains</a> based on four core components: partnerships, policy, strategy and information technology. The report outlines a series of recommendations aimed at guiding multi-stakeholder engagement. Noting that systemic risks are characterized by "global geographic scope, cross-industry relevance, uncertainty as to how and when they will occur, and high levels of economic and social impact requiring a multi-stakeholder response," the report added that such risks are also "magnified by the way supply chain systems are configured; and cannot be mitigated by individual actors. Risk management must be an explicit but integral part of supply chain governance."</p>
<p>Noting that various institutions have widely different perspectives about supply chain risk assessment, the report made these key recommendations: institutionalize "a multi-stakeholder supply chain risk assessment process rooted in a broad-based and neutral international body"; mobilize international standards bodies to "further develop, harmonize and encourage the adoption of resilience standards"; incentivize organizations "to follow agile, adaptable strategies to improve common resilience" and "expand the use of data sharing platforms for risk identification and responses." The report also outlined three "must-have" requirements that have emerged from WEF-sponsored workshops and dialogues held in recent months: First, the need for a "common vocabulary" when talking about risk; second, the need for improved data and information among those involved with supply chains, and third, "the need to build greater agility and flexibility into resilience strategies."</p>
<p>Meanwhile, the Council of Supply Chain Professionals (CSCMP), the Chicago-based international organization for the industry, has also <a href="http://cscmp.org/member-benefits/hot-topics/supply-chain-risk-identification-structure">presented its members with a formal structure</a> for identifying -- and mitigating -- the root causes and impacts of various kinds of risks commonly facing supply chains.Known as the Supply Chain Risk Identification Structure (SCRIS), it is designed to create a common language for supply chain professionals to address the challenges faced by companies of all sizes and in all sectors.</p>
<p>Why is there an urgent need for such a formal structure? "Ask 100 different people the same question -- 'What does supply chain risk mean to you?' -- and you will get lots of different answers," according to Richard Sharpe, chief executive officer of Competitive Insights, an Atlanta-based provider of supply chain software. "For some people, risk means terrorist attacks. For others, it means port closures, IT infrastructure vulnerability or the financial collapse of their suppliers. Since supply chain risk means so many different things to so many different people, it is hard to communicate with people without having a common language and structure to think about supply chain operating risks."</p>
<p><strong>'What If?' Instead of 'Why?'</strong></p>
<p>Richard Sherman, president of Austin, Tex.-based consulting firm Gold &amp; Domas, notes that another issue facing many firms regarding risk management is that they focus on the cause of a particular threat, rather than its results. For example, when companies hear about a devastating weather event, leadership will often try to figure out the best way to protect the firm from the same type of disaster occurring in the future. "It doesn't matter what happened to cause a company to lose a key supplier" or to suffer a different sort of disruption to its supply chain, Sherman adds. "What matters is finding answers for such questions as: 'What do we do if we lose any key supplier?' or 'What do we do if any one of our key plants goes down?' Risk management is all about 'What if I lose something?' It is not about 'Why did I lose it?'"</p>
<p>The CSCMP's SCRIS framework is designed to make it easier for supply chain specialists -- and senior executives at firms that have complex, often globalized supply chains -- to identify and address the 'what-if' scenarios most relevant to their own specific <keyword id="6363823" type="ORGANIZATION" weightage="60" keywordseo="Operations">operations</keyword>. It makes no sense for companies to prepare a contingency plan for a specific disaster like a tornado, Sherman points out. "The odds of winning such a bet are so small, so it is not worth the planning."</p>
<p>Long before the SCRIS was unveiled last November, this sort of pro-active approach had become standard operating procedure at leading global corporations like Coca-Cola, GE, Ford and GM, note analysts. Many of those firms have already developed a "risk management culture," says Walter Kemmsies, chief economist at Moffatt &amp; Nichol, a global infrastructure and transportation advisory firm. "It is already in those companies' blood to go after supply chain risks." But many smaller companies have yet to do so, he adds, either because they don't understand the increasing vulnerability of their global supply chains, or they lack the resources to tackle its increased complexity.</p>
<p>Wharton operations and information management professor <a href="https://opimweb.wharton.upenn.edu/profile/29/">Marshall Fisher</a> notes that it could be tempting for companies to try to predict the likelihood of the various kinds of risks facing their supply chains and prepare for those specific contingencies. For example, a company might avoid building a plant on an earthquake fault line, or build a second plant in a region safe from earthquakes. However, he adds, "so many things could go wrong that it is hopeless to predict what could happen." He suggests that firms should instead design their supply chains to be resilient, even if that means spending significant resources in the form of constructing additional plants or contracting with extra suppliers.</p>
<p>The SCRIS model makes sense, according to Tom Linton, chief procurement and supply chain officer at Flextronics International, a $30 billion electronics manufacturing services firm with more than 200,000 employees and operations in 30 countries, but he notes that for a company like his, there is no such thing as a "simple" way to map risk due to all the different variables that come into play, such as sites, vendors, ownership, locations, materials, ability to effect, strategy and internal politics. "The model probably works well for a supply chain that isn't too complex."</p>
<p>Another hurdle is that many firms are "just starting to prioritize creating transparency throughout the supply chain and might not have a full picture of all of the entire supply chain," says Wharton MBA student Dana Martin, who has worked in supply chain resilience and security consulting with numerous Fortune 500 companies. Martin points out that even Wal-Mart, despite all its sophisticated supply chain capabilities, was caught off guard when an unauthorized supplier in Bangladesh suffered a factory fire that killed 112 people. "One of the major challenges is a lack of commercial software and tools to analyze and quantify the risks associated with a company's supply chain," he notes. "Additionally, company executives need to transition their view of supply chain risks from a back-office cost center to a 'bet-the-company' issue that requires investment and executive attention."</p>
<p><strong>Developing a Road Map</strong></p>
<p>Wharton operations and information management professor <a href="https://opimweb.wharton.upenn.edu/profile/27/">Morris Cohen</a> says SCRIS and other initiatives help by giving people a framework to think about the process. He adds that even companies with a modest technology budget can develop a broad road map for thinking through their major risks. Cohen's overall "thought framework" for risk management and mitigation involves analyzing the probabilities of various risks, including low-probability but high-impact events such as disastrous weather events. Having completed such an analysis, companies can then "make investments in capacity, flexibility and technology in advance of the event," Cohen notes. "Ninety percent of the quality of the results will be determined by the decisions made in advance [of a risky event.] You can't afford to put all your resources at all the places where something could go wrong."</p>
<p>Cohen cautions that companies need sophisticated models of their supply chains that accurately reflect the challenges specific to their particular operations. These representations, whether simulations or mathematical models, must take into account all the important factors and the likelihoods that "low probability, high-cost events that have very expensive outcomes" will take place. "If you ignore the complexity, you can miss the whole point," he adds.</p>
<p>According to Cohen, many firms that do not enact advanced risk management strategies probably have an intuitive understanding of the basic issues involved. "Many people have good intuition, but they may not have the tools and analytical data" needed to alleviate their supply chain risks. Cohen points out that nowadays, there exist "powerful tools, such as data mining and sophisticated logarithms.... But if you don't invest in advanced thinking, it is a prescription for disaster. You can't just think about the process, but must put in place prescriptions."</p>
<p><strong>Adding Redundancy, Increasing Resilience</strong></p>
<p>Broadly speaking, three sorts of mitigation strategies emerge from the approach outlined in the SCRIS, says Sharpe, its co-author. The first category involves redundancy. In a very simple example, if a company has only one distribution center for its products, it risks a major failure in its supply chain if that distribution center cannot operate for a significant period of time. An appropriate redundancy strategy might involve building a second distribution center. Or leadership may decide that the firm needs to use at least two transportation carriers each month in order to service its best customers because high-quality customer service is absolutely vital to its business model.</p>
<p>Second, some strategies involve contingency planning, notes Sharpe. In such a case, company leadership identifies their top-priority risks, and then develops an action plan contingent on certain negative events taking place. Employees must be trained in that plan, and it must be communicated to all relevant stakeholders in and outside the organization. "A lot of people set up a war room and an action plan after the event, but by that time, you are racing against time," Sharpe says. If, for example, a firm waits until after a key supplier goes bankrupt, it may find that it can't satisfy customers' orders. "You then have to deal with the reality of significant profit losses, lost market share and diminished shareholder confidence. That's why you focus on mitigation activities in advance of the event," he adds.</p>
<p>A third kind of mitigation strategy involves changing corporate policies, says Sharpe. In such a case, companies "change their operating policies to be less vulnerable to an identifiable, prioritized risk." In one notable example, Toyota decided not to rely on single suppliers for any of its vehicle components following the Sendai tsunami and nuclear disaster of 2011. The earlier approach left Toyota vulnerable when single-source suppliers were forced to shut down.</p>
<p>Fisher, Martin and Wharton MBA student Hirotaka Ellis are currently involved in an independent study project focused on simulating supply chains in an effort to quantify one company's supply chain resilience and recommend appropriate investments to diminish that firm's supply chain risks -- and consequently increase its resilience.</p>
<p>Ironically, writes Martin in his description of the research project, over the past decade global enterprises have focused on making their supply chains leaner by eliminating redundancy and cutting inventories in order to reduce costs. Such an approach "has significantly increased the importance of each node in the supply chain to the success of the entire system," he notes. "Because nearly every node is critical, the relative risk of interference with a single node causing a disruption to the entire supply chain has grown significantly. These risks, previously not considered worthy of 'C-suite' consideration, have ... changed the competitive landscape in numerous industries."</p>

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