In the world of risk management, an emerging risk is one that is growing in importance and validity and requires special attention and handling as we learn about the full scale of its potential destructive powers. These are five emerging risks business owners, entrepreneurs, and individuals alike need to be concerned about – enough so to take action to protect themselves.
1. Reputational Risks
Social media is a two-edged sword. In one way, it allows you to speak to huge audiences with the press of a few buttons online. Businesses, celebrities, and entrepreneurs can use it to spread the word about new products, sales, discounts, new ideas, and more in a matter of seconds.
On the other side of the argument, though the misuse of language can result in unintentionally (or perhaps intentionally) offending someone or a group of people and swiftly become a reputational firestorm that effects your business in unforeseen ways.
2. Digitalization/Cyber Risks
The increased digitalization of homes and businesses are leaving people more vulnerable than ever from cyber attacks. People are even exposing the alarm systems and digital door locks, designed to protect their homes, vulnerable to attack by allowing them access via Wi-Fi which utilizes factory default passwords.
Businesses are doing the same things by leaving confidential customer, client, patient, and employee information vulnerable by using ineffective security measures for the digital worlds in which they operate. These risks are only growing as technology and dependence upon it evolves.
3. Artificial Intelligence/Robotization Risks
With so many things interconnected in smart homes and offices, it is no wonder that artificial intelligence is becoming a growing risk. The more people bring new tech products like Alexa, Watson, Google Home, and others into their homes and offices, the greater the potential risks grow. This risk is emerging because we are not yet sure of what kind of damage is possible or how catastrophic the consequences could be.
4. Natural Resources Management
While many people are focusing their time, attention, and talent to the problem of global warming, we are quietly going along using up the limited natural resources the planet provides. All the while the world is rapidly approaching what many consider to be a sustainability limit. Its resources are finite and failing to address the problem today, could prove insurmountable long before the world comes up with an effective method of managing the problem.
5. Cloud Computing Risks
Businesses and individuals alike are relying on cloud computing for everything from confidential and proprietary client information to cherished photographs and family recipes. While the latter would be a disappointment to lose for many people, the first could prove disastrous for businesses should they become compromised or lost.
Cloud computing not only poses the risk of breaches occurring and this information being released to the world. It also poses the risk of being lost, due to equipment failures and redundancy breakdowns that are beyond your control.
There are countless emerging risks businesses and individuals face each and every day. WA Group makes it our business to help you manage risks in your business. Contact us today to learn how we can help you protect your interests against these emerging risks and more.
Learn more via Matt Christensen
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