The top business risks 2014
Business risk consultancy Riskskill has highlighted what it sees as the main areas of increasing business risk for UK companies in 2014:
1. Fraud Risks
On the commercial side, payment markets will continue to evolve very quickly this year. New payment systems and software solutions are appearing daily. Many of these do not put in place effective authentication, security, standards or best practice systems. Often, this is because these have yet to be created in a market that is changing so rapidly. New mobile payment and wallet solutions are being developed with the backing of ‘big’ funding and strong marketing campaigns. Only a few of these will win through though. Many will fail, either commercially or because of serious 'fraud attacks' that exploit the lack of authentication.
2. Identity validation / authentication
There are though several weaknesses in this area. For example, some small operators of 'new' payment solutions think that they are excluded from these requirements. There are also some insurance company policy sellers, who are playing catch up and often who do not check identities. Then there is the public who are increasingly becoming payment providers as they buy and sell more on-line. Whereas one used to know who one was dealing with for financial transactions (as it used to be only one’s banks, card companies and utilities that one dealt with) it can now potentially be almost anyone, anywhere in the world.
As a consequence, identity, identity validation and data certainty will all move up the risk hierarchy and as a result so will the level of importance placed on these areas by businesses in 2014. These risks will be amplified greatly or those organizations that do not understand the issues or address them properly.
3. Big-data losses
4. Protection for multiple channels
One of the major areas of attack expected is a fresh onslaught of new viruses. With such new threats as Cryptolocker, and other such plagues landing on business of all sizes, there is a risk that this kind of attack could reach epidemic levels in 2014. Even the smallest firms must ensure that they update virus and anti-malware software regularly, maintain strong back-up regimes and avoid clicking on any suspicious links. If these dangers move closer to mobile payments, it could threaten the momentum of the mobile sector evolution especially where authentication is often far less effective than it could or should be.
5. Silo mentality causing corporate ineffectiveness in combatting risk
Instead, businesses should be fighting hard to define clear risk management direction, together with business goals that incorporate risk thinking and risk/loss targets. Collaboration is the key here. It facilitates speed of decision-making, clear and assertive action-taking and an understanding of the business drivers. It also enables the ability to act, invest and change the business as required which are key to controlling risks.
•Date: 24th January 2014 • UK •Type: Article • Topic: Enterprise risk management
To submit news stories to Continuity Central, e-mail the editor.
Want an RSS newsfeed for your website? Click here