Next year’s biggest risks

Cyberattacks and “the personalised and assertive style of national leaders” are two of the biggest risks facing businesses in 2018 next year, specialist global risk consultancy Control Risks says.

It has unveiled RiskMap 2018, finding large scale cyberattacks, particularly those aimed against infrastructure, could again be a big risk to businesses following this year’s major incidents such as May’s WannaCry ransomware attack.

It affected more than 150 countries and at least 200,000 personal computers, demanding payment in Bitcoin.

While there are many positives for businesses and policymakers heading into 2018, risks remain, Control Risks chief executive officer Richard Fenning says.

“Despite the most positive economic outlook since the end of the financial crisis, we are entering a year of geo-political fragility that has the potential to trigger shockwaves to global stability and business confidence,” Fenning says, Insurance Business Australia

reports.

“With the threat of the next world order being imposed, not agreed global dynamics and perceptions of risk are being shaped by a more robust, personalised and unpredictable style of political leadership in many parts of the world, making business planning very difficult. Trying to understand the motivations of global leaders and the potential impact of their actions will be critical to making the right strategic business decisions.”

The report says the rapid rise of digitalisation, alongside the “mushrooming” of social media in commerce, is giving regulators and governments reason for pause as cyber risk continues to escalate.

Escalations in North Korea, alongside US protectionism, were also listed, plus Middle Eastern regional rivalries.