Risk mitigation is essential as a business owner but requires ongoing education. With this year’s changes, it is critical to understand the potential risks to be aware of to protect your business. You must adhere to state and federal employment laws, minimize environmental damage and maintain fiscal responsibility. Meanwhile, technological advancements may dictate necessary proactive defenses throughout 2020.
The top three operational risks for the year
A recent survey of 100 risk operational risk practitioners determined some of the top business risks for 2020, including:
- Theft and fraud – Concerns related to theft and fraud increased to the third-largest risk this year, up from fifth place in 2019. The largest cases of fraud in each of the past two years included internal malfeasance. Meanwhile, computer hacking capabilities continue growing at nearly the same rate as customer automation processes, challenging risk prevention measures.
- Compromised data – Data compromise declined from the number one risk last year to the second most concerning corporate risk factor this year. Mismanaged data and sophisticated cybercrimes could have an adverse effect on your company’s reputation, in addition to your financial balance.
- Cybercrimes – IT disruption repositioned itself from last year’s second-highest concern to the current largest potential risk. Cyber-attacks could wreak havoc on financial systems, as well as an institution’s accompanying data.
You must consider the potential long-term effects of a breach and establish your systems accordingly. Concerning yourself with your ability to overcome potential threats could magnify your potential to implement adequate recovery efforts, should they become necessary.