Business risk is the possibility of damage, injury, liability, loss or any negative incident that may affect a business’ ability to operate and in worse cases, lead to its downturn and dissolution.
This is why it is important for every business to be proactive; identify, analyze, and take preemptive actions before they transpire and get detrimental.
In the Executive Opinion Survey conducted by the World Economic Forum in 2017, the global risks of highest concern for doing business were identified.
Among them are technological risks namely cyberattacks, data fraud or theft, misuse of technologies, and critical information infrastructure breakdown.
According to the 2017 Microsoft report “The Iceberg Effect of Cyberattacks in Asia Pacific”, seven percent of Asia Pacific’s total economic loss, a whopping amount of $1.75 trillion, was lost to cyberattacks.
The study also revealed that a large organization with more than five hundred employees would suffer an average loss of over $30 million if a breach occurs, more than five hundred times higher than the average loss for a mid-sized organization.
One of the main reasons behind this trend is that almost sixty-nine percent of the respondents have put off digital transformation efforts due to cyberattack fears, which is surprising because it is the opposite of what they should do.
They key to avoiding any technological risk is to invest it cutting-edge technology because outdated technologies are vulnerable to hacking. Not to mention that it can decrease productivity and increase customer-drop-off.
Having that said, here are the key takeaways of the infographic from Bizprac which details 10 ways your business could be at risk:
- Natural disasters
- Health and safety risks
- Non-compliance with regulations
- Regulatory and government policy changes
- Security risks
- Cyber risks
- Economic and financial risks
- Loss of competitive advantage
- Utilities and services
To learn more about this topic, check out the infographic below.