The risk landscape is changing fast. Every day’s headlines bring new reminders that the future is on its way, and sometimes it feels like new risks and response strategies are around every corner. The outlines of new opportunities and new challenges for risk leaders—indeed, all organizational leaders—are already visible. So what should leaders prepare for in 2020? By Mitiget
Gartner Risk Management Leadership Council shares Top 10 Emerging Risks that the Risk, Audit and Compliance executives identified to be critical areas to watch:
The risk that assumptions made during strategic planning processes become outdated or incorrect more quickly than the execution of the strategy itself.
The risk that previously unconnected physical devices or assets (such as security badges) with the internet increases an organization’s vulnerability to cyber-attacks due to inadequate security procedures for IOT devices, smart buildings and other operational technologies.
3.Extreme Weather Event
The risk that the increased frequency of extreme weather events can have an effect on the economic growth of an organization due to the cost of revamping the business continuity and disaster recovery plans to avoid disruption, or the cost of relocating facilities from areas that experience flooding or other detrimental weather events (snow, tornadoes, etc).
The risk that the data localization requirements in evolving data protection laws around the globe dramatically alter the organization’s approach to housing data.
5.US/China Trade Talks
The risk that US/China trade talks will continue to drag on, creating uncertainty in supply chain or investment opportunities.
6.Risk Response Perception
The risk that after a highly publicized risk event that the actions taken by the organization are perceived as insufficient or that the organization did not do enough to correct the wrong.
The risk that the headwinds currently faced industrial production will cause the sector to decline and not keep pace with economic growth sparking recessionary fears.
8.Gen-Z Consumer Preferences
The risk that as global connectivity soars, generational shifts could come to play a more important role in setting behaviour than socioeconomic differences do. Members of Generation Z score the highest in terms of brand loyalty. If an organization is not well-positioned now to capture Gen-Z mind-share, it will be difficult to dislodge Gen-Z’s existing loyalty to customers.
9.Sustainability/Ethical Impact Failure
The risk of a reputational or financial impact to the organization due to perceived negative environment, social and governance (ESG) changes or actions taken by the organization.
10.AI/Machine Learning Bias
The risk that AI & Machine Learning will amplify biases, leading to unintended ethics and compliance violation.