Risk is unavoidable in the business place. The ability to assess what risks you face is important, and how you deal with them can be the difference between success and failure. You might be surprised to learn what are some of the common risks organizations face.
Cyberattacks can kill an organization’s productivity. Thirty-one percent of organizations impacted by security incidents reported eight or more hours of downtime. Issues of this nature can come from simple mistakes on the part of the organization’s staff; in a poll of IT professionals conducted by Cisco, 54 percent said their company experienced at least one security incident due to human error or recklessness. Yet in spite of this, 52 percent of the organizations that experienced a cyberattack in 2016 have no plans to change to their security in 2017.
Cyber threats have an impact on more than just a company’s internal functioning and productivity. When companies form merger and acquisition deals, they acquire any of the other company’s cybersecurity vulnerabilities. Eighty-seven percent of U.S. business executives are worried that cyber threats could have an impact on their company’s growth prospects. They have good reason to feel this way, as 85 percent of directors said the discovery of a major cybersecurity vulnerability would impact their decision on a merger or acquisition. In 2015, there was a total of 5 trillion dollars tied up in these deals due to cybersecurity issues.
Outside of security concerns, companies are also facing risks with regulations and compliance. Eighty-seven percent of bank and capital markets CEOs are concerned about over-regulation. Again, they have good reason to be; only 61 percent of retail organizations are confident they will be able to maintain the full Payment Card Industry Data Security Standard (PCI-DSS). That’s still better than the healthcare industry; only 40% of healthcare professionals were confident their organization would remain HIPAA-compliant. Falling short of these regulations can result in significant penalties. For instance, a non-compliant company doing business in Europe can face a penalty equal to 4% of its gross worldwide revenue.
In addition to cybersecurity and legal regulations, there are physical security risks to consider with supply chains. Nearly 40 percent of U.S. imports come from countries with a high risk of natural disaster exposure, which could put a sudden and unexpected halt to a company’s supply chain. Relations with suppliers may be seeing changes in the future, as 65 percent of companies are considering different ways to collaborate with their suppliers in order to mitigate risks.
However, here’s the good news: 100 percent of the issues listed above can be solved by partnering with the right experts. If you’re interested in finding out what help you can receive in addressing these risks, let’s talk.