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Threats Affecting Risk Management
Risks accumulate in every business. When spotted accurately and at the right time, the gaps that block its expansion can be filled, favouring impressive profits
FREMONT, CA: To identify, assess, monitor, and respond to the threats that a company’s overall marketplace encounters and their turnover fall under risk management. Risks lie in every step that a business takes, like technology, natural disasters, internal systems, legal liabilities, company branding, and compliance needs. Hence, those companies that assess their weaknesses at an early stage can make effective decisions that guarantee long-term success. When these exposable risks are identified early on, resilient plans for dealing with them can be developed, resulting in business growth. Similarly, challenges in risk management are escalating due to the increased impact of COVID, continuous evolution in the development processes, and cybersecurity concerns.
Threats in Risk Management
• Prevailing ESG Risks- ESG risk factors such as environmental, social, and governance-related risks trail a company’s growth. ESG is a broad branch that accumulates varied threats like environmental management practices, climatic change impacts, mitigation, employees’ work and safety conditions, anti-bribery enforcement for the company, and its overall compliance owing to industry-specific laws and regulations. However, with every risk, rises an opportunity for the proper moulding of an organisation. Hence, ESG investments as the predominant growth factor in the APAC region can yield formidable profit values.
• Breaks in Supply Chain- The aftermath of COVID is so severe that its impact is still felt in business, slowing global supply chains. One plausible effort that can close these existing gaps in the sequence is to analyse the outside dependencies of the business's high-priority assets and devise backup plans accordingly.
• Increased Illegal Access- Gaps, if not narrowed sooner, might result in fraudulent companies faking their services before the actual business steps in. One testament to this illicit adultery is the usage of KN-95 masks with varied qualities during the COVID-19 prevalence. In parallel, personal protective equipment gear was also duped identically to that of the original product. It can be of major concern as the varying nature of the mask may instil distrust in the minds of consumers. Similarly, scam government agencies may often barge in with attractive aid options to attract businesses. By running thorough fraud risk assessments, both internal and external gamblings can be spotted, and thus losses in the business can be minimised.
• Increased Cyber Threats- It is the most prevalent concern for digital businesses. Moreover, with COVID-19’s escalated health risks, cyber threats are becoming severe with remote working opportunities. Due to the lack of security in their connections, people working from home are more likely to be exposed to cyber risks than those working in the office. That is, hybrid work culture employees’ devices are most probably potential targets for hacking due to their lowered security gaps.
Risk assessments should not be limited to their functions because businesses may be lacking in a variety of areas. Hence, a thorough estimation of the gaps that it has to fill in can yield potential results.