As the world continues to evolve, so do our economies. And as a result of changing economies comes the emergence of new and advancing risks. According to C-suite executives from around the world, the risks we are facing today have changed dramatically. For years, the top two risks included economic conditions and regulatory scrutiny. Now, however, there are more than a few top risks, including:
- Corporate culture: The corporate culture of your company can enhance ventures and make them worse when the culture itself is not attuned to the risks. This is why it is so important to create a culture that is aware of the risks and willing to mitigate them to its fullest ability. How can you do this? It starts with compliance discussions. These discussions should take place on a regular basis and all employees should be required to attend.
- Disruptive innovation: Disruptive innovations are constantly deranging businesses. Sure, they may bring forth profitable advantages, but in the beginning, these disruptions can be quite a headache. To mitigate the risks posed by disruptive innovations, it is pertinent to preserve any aspects that bring value to the business that no other businesses have.
- Cyber threats: There have been numerous cyber threats and attacks over the past few years, and the healthcare industry has been one of the most affected. In 2015, 23 percent of cyber threats and attacks relating to data security incidents occurred in this industry. Fortunately, there are key ways to mitigate cyber threat risks. These include classifying assets, staying informed on threats and vulnerabilities, implementing effective controls, and engaging/educating business associates on cybersecurity.
- Digitalization: Digitalization has brought forth an array of advantages to the economy and businesses all across the world. It has also brought with it multiple risks. To mitigate digitalization risks, it is imperative to scrutinize internal controls, maintain cross-functional communication, invest in cyber insurance, and stay adaptable.
- Organizational resistance to change: Adapting to changes is one of the biggest risks companies face. And when the adaptation doesn’t take place smoothly, this can lead to reduced productivity levels, decreases in profit margins, and unhappy employees and customers. To mitigate risks related to organizational resistance to change, businesses need to invest in change management, be prepared for the resistance, formally manage the resistance, pinpoint causes of resistance, and engage those workers and resources that can operate as resistance managers.
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