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Business Continuity Risks: Trends in 2018

Business Continuity Risks: Trends in 2018

Business continuity threats vary depending on the circumstances that affect an organization. However, there are sevenemerging trends that pose continuity risks to businesses globally and across industries. According to business broker Cress V. Diglio, it is essential for business leaders to stay abreast and watch out for these corporate threats to avert possible disruptions in operations, losses, or, in the worst case scenario, business closure.

 

Below we list down seven emerging trends that businesses around the world should prepare for.

1. Cyber threats

As businesses move to the digital space, cyber threats (such as identity fraud, cyber attacks and data breaches) loom large in the minds of corporate leaders. Over the recent years, we’ve seen how cyber attacks have become more widespread. For instance, last year’s Wannacry, Petya and NotPetya ransomware attacks have highlighted how potentially devastating these cyber intrusions can be. This makes it vital for businesses to beef up on their data and system security to thwart the unscrupulous plans of cyber-criminals.

2. Data outages

Apart from cyber threats, data outages due to internal issues are an emerging corporate risk. With business processes now highly dependent on IT systems, any major failure in the IT infrastructure can cripple the entire business operations. Businesses must consider IT infrastructure as a top asset that requires continuous development and investment.

3. Business interruption

The 2018 Risk Barometer report by global insurance company Allianz lists disruptions in business operations as the top risk for organizations globally. These interruptions can result from unwanted occurrences such as failures in the supply chain, worker strike, factory fires and explosions, and power failures. To avoid these costly risks, organizations must establish measures that will ensure good workplace conditions.

4. Branding and reputational risk

Although branding and reputational risk has been around even before, it is growing in importance in this age of social networks. Any viral negative feedback about a brand can spread like wildfire putting in peril the reputation of the entire organization. As such, it is essential for businesses to put in place a crisis communication plan that can help contain any branding troubles.

5. Disaster risk

Disaster scenarios are an emerging trend that can have a devastating impact on the physical infrastructure and operations of a business. Natural catastrophes, such as typhoons, flooding, and earthquake, are the leading disrupters. According to Statista, it is estimated that around $353 billion has been lost in the global economy due to natural disasters and this number is expected to rise exponentially as natural calamities become a common occurrence. Considering these massive losses, business leaders should now seriously look at climate change (the supposed root cause of natural disasters) as the real threat.

6. Disruptive innovations and technologies

The rapidly evolving technology may outpace a business’ ability to adapt to the upgrades and improvements. Furthermore, the invention of disruptive technologies, such as bitcoin and blockchain, can have a profound impact on businesses that are unable to catch up with these trends. As such, it is essential for companies to continually review their business model to ensure that it doesn’t get left out by technology.

7. Regulatory changes

The enforcement of the General Data Protection Regulation (GDPR) in EU countries has crippled numerous businesses as they were unable to comply with the new stringent rules. Such regulatory changes pose a risk for corporations. And we can expect different countries and regulatory bodies to issue respective regulatory updates that can potentially alter your business processes. This makes it vital for businesses to always stay up-to-date with regulations that may affect the conduct of their business.

 

It can be unsettling when you think about how these corporate threats can cripple business operations. But the good news is that these emerging threats can be managed. Corporate leaders and managers can do something to prevent these risks from affecting their business performance.

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