Business today demands forward-thinking CROs who can make digitally-confident and data-driven decisions to support growth and maintain trust.
The future is notoriously difficult to predict, as any chief risk officer (CRO) will attest. But there are several global risks that should be on every CRO’s radar this year.
The first is privacy. Business leaders are just starting to get their heads around the European Union's General Data Protection Regulation, the world’s toughest privacy and security law. It may be an EU law, but it has implications for organizations the world over. The penalties are stiff and we’ve already seen one tech titan cop a £50 million fine for failing to meet its new obligations. Other jurisdictions – Australia, Singapore and China to name three – are also introducing privacy legislation. As a result, companies are being compelled to reconsider how they manage the risks around using and monetizing data.
The second global risk is cybersecurity. In our digital and increasingly interconnected world, risks can travel at lightspeed – within organizations, along value chains, between industries and across national boundaries. A good illustration of this impact is the WannaCry ransomware attack in 2017, which infected more than 230,000 computers in 150-plus countries in less than 24 hours. Hospitals on both sides of the Atlantic turned away non-critical patients, European manufacturers closed factory floors and rail travel in Russia ground to a halt.
When a malware worm – or even bad PR – can be shared in an instant, it’s no longer enough to manage your own organization and its impact on the world. And this is why third-party risk is also now a key talking point in the boardroom. Legislation to combat modern slavery – first in the UK and now in Australia – requires some of the world’s biggest companies to shine a light along the length of their supply chains. And what they’re learning is that one organization’s risk is every organization’s risk.