All the top businesses today – Manufacturing& Distribution, Banking & Financial Services, Consumer Products & Services, Technology, Media & Communications, Healthcare & Life Sciences and Energy & Utilities – are expected to grow at a fast pace in the coming decade.
However the evolution of these businesses comes at the cost of rising risks. Analyzing and mitigating the risk factors should take precedence when devising strategies.
Several global studies report the following 10 risks businesses face as of 2016 and beyond:
1. Business Interruption
2. Market Developments
3. Cyber incidents
4. Natural catastrophes
5. Changes in legislation and regulation
6. Macroeconomic developments
7. Loss of reputation
8. Fire, explosion
9. Political risks
10. Theft, fraud & corruption
Evaluating these risks, one can see that they are inter-connected, the starting point of which is Change ending with Business Interruptions. And a majority of the interruptions are caused due to the reliance on digitalization.
A critical aspect to note is that most businesses either have heavily leveraged on technology continuing to invest and innovate or are having their technological innovations and investments growing out of proportions. Most companies areshifting to cloud-based solutions and have devices connected to IoT (Internet-of-Things). With this, the digital footprint of enterprises is growing but so are the risks. This development has led to exponential growth of identities as every device and every application communicate with each other in real-time. The world population currently stands at 7.13 billion and 3.2 billion out of this are internet users. Research shows that on average, a typical digital consumer owns 3.64 digital devices. Further research forecasts that over 50 billion digital devices will be interconnected toIoTby 2020. It can only be noted that such a trend will result in a mammoth billions of user identities in the digital space. These coupled with the lack of understanding and awareness of cyber-risk poses a major challenge for businesses to manage if the scope of internal threat is not mitigated for.
Studies show that over 60% IT stakeholders view cyber incidents to be the future trend increasing business interruption risk.A survey by NYSE Governance Services found that cyber-security is discussed at 80% of all board meetings however only 34% are confident of their respective companies’ ability to defend themselves against cyber-attacks. More worrying is the fact that only 11% of the board have a high level understanding of the risks associated with cyber-security, states reports. It is thereforeevident that the primary driver for now and upcoming decades is cyber threats – born by the constantly rising technological innovations and evolution of theIoT.The outcome — cyber-crimes alone cost the global economy $445 billion a year as per reports.
The hour has come now where it is imperativeto embed automation of the end-to-endrisk managementframework and driveit as a culture within organizations. It is technology now that can protect businesses from interconnected risks created by technology. Automation will help businesses stand the ‘risk’ of times.
ARCON provides state-of-the-art technology aimed at mitigating information systems related risks thereby enabling organizations to comply with Governance, Risk Management and Compliance (GRC) requirements. The company, in particular, is known for its unique Privileged Identity Management/Privileged Access Management solution, which helps deter the misuse of ‘privileged identities’.
Learn more about us at www.arconnet.com