If there’s one emerging risk that will dominate 2020, it will be the development of natural disasters and the consequential damage they impose on livelihoods across the globe. Many organisations are also exploring how the idea of a ‘coronavirus passport’ could be used to help their industries return to a level of normal operation once vaccinations start taking place. You consent to our cookies if you continue to use our website. We are already seeing insurers pull out of businesses that are deemed to be harmful to the planet. But we’re entering a new era of global heating and climate change; with extreme weather events leading to mass damage to businesses worldwide. Featured Insights. Security specialists Symantec revealed earlier in the year that over 4 billion records had been breached, with nearly 4,000 separate incidents announced. We spoke with Regina Chi, Vice-President and Portfolio Manager at AGF Investments, and she says that there are new risks to watch out for – but also, compelling opportunities well worth capturing. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. As quickly as risk mitigation evolves, fraudsters are never far behind creating new means of attack to disrupt or bypass online systems. Despite this, it still remains a key concern, and the effects of digitalisation on the risk environment can be seen throughout all of the risk categories we analysed. Ticketmaster too has suggested plans to provide technology for event organisers to demand proof of vaccination from fans attending a concert or sporting event. The interconnectedness of risks, driven by digitalisation, is rendering traditional risk categorisations unhelpful to understand and manage risk. Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. As such, the return of large gatherings at work or in leisure settings, like concerts or sporting venues, has been facilitated in the knowledge that nobody present is likely to spread the virus. Fingerprint authentication is an immediate and undeniable verification of the individual person. Organizations can create new capabilities … For the insurance industry, it is important to protect our clients from denial of service attacks formed from botnets, but also protect our customer’s devices if they are used in a botnet. These cookies will be stored in your browser only with your consent. Each of these areas is analysed in-depth in the 'Risks in focus' section of the report. Nathan Hill 21 January 2020 Tweet . Many companies default to this posture, however, due to the misconception that a complex emerging risk requires an equally complex and costly response. Clash of efficiency and ethics in new tech applications. Headline findings Information security & cyber top current op risk. Send to . July 22 - August 6, 2020. Subscribe Now. We've surveyed over 45 financial firms based around the world to find out which risks are top of their agenda for 2020, and which they think will have the most impact in the next three years. To make things simpler for you to identity or distinguish sponsored articles or links, you may consider all articles or links hosted on our site as a partner endorsed link. It can also limit us in our friendships, our work relationships and ultimately how we feel about ourselves and others. The gambling industry, in particular, is at the forefront of this shift to online activity. Emerging Risk Levels for Enterprises to Watch in 2020 According to over half of risk professionals throughout the world, the risk levels of their organizations have increased significantly in the past year, as has been mentioned in the new research done by ISACA, CMMI Institute, and Infosecurity Group. Some of this comes from our learnt behaviour from our parents, yet this our interpretation of their behaviour, and again only at the Micro level can we break this down, see it for what it is and make the choice or whether or not we want to continue behaving like this. Many of the concerns highlighted in the report this year are thematic, cutting across multiple traditional risk categories. Businesses will need to be sure that they have comprehensive cover that means their entire network is protected, and that any device installed in their network is verified beforehand. The COVID-19 crisis provides a concrete illustration of the growing connectivity of risks, which AXA presented as one of the main findings of last year’s report. In today’s contemporary world, many of us rely on digital products and services to work, shop and entertain. The answer can be found in a digital identity powered by fingerprint biometric authentication technology. The psychological term “Projection” is defined as being a defence mechanism in which we defend our ego / feelings against our unconscious impulses or qualities (both positive and negative), by denying their existence in ourselves and attributing them to others. We also ask them which risks they think will be the key emerging risks over the next three years. One of the main issues is that as the fraudster/hacker gets smarter, there are simply not enough trained cyber security professionals to protect every business. Low financial awareness. Well, in our technological world, driven as it is by machines and Artificial Intelligence, we can lose sight of just how complex we humans are… and how we continue to put even the most ‘macro’ of computers to shame. But opting out of some of these cookies may affect your browsing experience. In total, we analysed 412 current risks and 281 emerging risks to create this report. Businesses that do not respond quickly enough to the ‘greenification’ of everything will also be hit by social pressure to change potentially harmful business practices or investment. Emerging Risks in 2020 and Beyond – New Game, New Rules. From this information, we've identified and analysed the top current and emerging operational risks. There is a distinct need and demand in this climate for digital services, however to be a true leader in the race towards digitisation, companies must place priority on security, if they are to benefit in the transformation from in-person to online. In addition, IP decisioning data provides the ability to determine if the IP is being used by actual people or a non-human bot to manipulate game play. In a COVID-19 context, fingerprint biometrics can be incorporated into a singular, unified digital ID to unquestionably prove that people have been either tested negative or, even more ideally looking forward, have received the coronavirus vaccine. Biometrics can support health and security. In addition to these priorities, the OCC’s supervision plan focuses on four emerging risk areas: the changing interest rate outlook on bank activities and risk exposures, preparedness for the current expected credit loss (CECL) accounting standard, preparation for the potential phaseout of the London Interbank Offering Rate (LIBOR) after 2021, and technology innovation and implementation. While some may be seen as clichés, they remain current in our everyday language because there are grains of truth in them. The top 10 most dangerous risks for 2020 chosen by the 101 insurance executives who answered our poll are: 01 Cybersecurity and cybercrime (up from two in 2019) Insurers have more to worry about regarding cybercrime than other businesses. Survey respondents were asked to rate 30 different risks involving macroeconomic, strategic, and operational issues. One example is the assertion that in order to be able to make big changes and adjustments in the way we behave, think and relate to others, we need to have a Big Vision of what we want (Macro level). Again, members of the population are only allowed to carry out their normal routines – whether it’s entering a shopping mall or restaurant, or even getting on the subway – if they display a code with confirmation of their virus-free status. This year, we've changed our approach to meet the developing requirements of operational risk management. Nonetheless, creating a robust security system to tackle fraud online is critical to managing ongoing risk. The Global Risks Report forecasts a year of increased domestic and international divisions with the added risk of economic slowdown. For the third year in a row, there have been significant fluctuations in the risks, as well as new risks coming into the top 10. Physical damage to technology firms can be a trigger for a cyber-based attack as their defences and resources may be compromised dealing with the physical emergency. EPA publishes new insight to explore the current state of financial exclusion in the UK and inspire action. An example of this might be checking ourselves before we make that off the cuff hurtful or ill-advised comment, or not allowing someone else’s mood or behaviour affect our feelings about ourselves. Our organization’s … Public pressure and regulatory attention, such as the Bank of England’s paper on climate change, have made climate a key issue. Emerging Risks: Using Consumer Law To Protect Student Loan Borrowers. So, while almost all sides agree an effective coronavirus passport is a good idea, this begs another question. The opportunity therefore exists for us to be targeted and manipulated on multiple devices, via various channels. Personal circumstances. Results from the World Economic Forum’s 2020 Executive Opinion Survey highlight the front-of-mind concerns regarding the global pandemic, but also offer insight into how business leaders globally are perceiving the ramifications of the crisis for local economies and societies. This is not to be considered as financial advice and should be considered only for information purposes. A new year means new opportunities, new technologies and for some a completely fresh start. We need to have a “Micro vision” of what we want for ourselves, “The devil is in the detail”, “Lets get down into the weeds”, “marginal gains” …. First, the risks. This will not incur any additional charges to you. This greater level of connectivity means that IoT can meet its true potential, with a host of interconnected devices helping to power our cities and advance our day to day lives. These are where cyberattackers inject code into a website — … The knock-on effect of this solution being introduced more widely is the potential for a rejuvenated population released from lockdown, and a boost to vital economic sectors – such as hospitality, events and retail. This new Future Series report highlights the growing threat from hidden and systemic risks inherent in the emerging technology environment, which will require significant change to the international and security communities’ response to cybersecurity. Download the free summary report to see which operational risks made the top five current and emerging risks and to read our analysis of the key themes. By Vince Graziani, CEO, IDEX Biometrics ASA. As a result, cyberattacks have exploded. Smart Axiata showcases sustainability and social impact practices in its 10th year of operations, How make big developmental changes in little ways: 3 reasons why it pays to think, act and feel at the Micro level, By Paul Austin, Accredited Coach Practitioner and Associate with Verosa. A 5G powered IoT Some of the big trends of 2020 will include an increase in ransomware attacks, with businesses happy to pay out rather than fight their way through. ... Risk outlook: the world in 2020. Sir John Whitmore refers to this in his book Coaching for Performance as “Awareness”, and I would go further and say that we can grow deeper, faster and more lastingly with “Micro Awareness”. With a new year upon us, Nathan Hill explores This is not necessarily a written process, we can think about it before we sleep, on a long walk or in the shower – it all builds a sense of questioning ourselves on the way we do things. In the UK, the notion of a ‘freedom pass’ has been put forward. In a world of open APIs and shareable data, this means that one weak link in the chain can bring down an entire host of businesses. You also have the option to opt-out of these cookies. Identifying which risks you need to be most aware of can be one of the biggest challenges facing operational risk professionals. Not surprisingly, information security and cyber remained the top risk for 2020. We’re already seeing examples where devices such as printers have been hacked to siphon off the printer’s memory to access print jobs containing sensitive files, such as contracts, corporate data or patient information. Copyright © 2010-2020 GBAF Publications Ltd - All Rights Reserved. Micro v Macro, all sounds very techy in an article piece about personal development doesn’t it? Meanwhile, the general population can look to re-enter society with reliable proof of their individual health and assurance of their digital security. Another one of 2020’s biggest fraud trends is the rise of phishing websites. What form should the passport take to best allay people’s privacy fears, while also providing security, convenience and confidence in the solution? Getting a better handle on systemic risks will require a significant technology governance refresh at all levels. While it is becoming increasingly difficult to spot genuine players from the fakes, one way to reduce that ambiguity and risk is to implement IP decisioning data. Well, there is a way to do exactly that and more. As well as the dominance of the ‘Deep Fake’, where scammers can create fake videos purporting to show high level members of staff requesting junior colleagues into giving up financial information/valuable documents. The 'Risks in focus' section looks at three key risk themes in more detail, examining the risk categories they affect. Where there is opportunity, there will always be risk and cyber criminals are unlikely to quit at the first hurdle. Historically larger insurance players have made their money through protecting property, however as climate change increases, and disasters become more commonplace, this will become an increasingly complicated sector. After coming first last year, in the 2020 Operational Risk Horizon digital disruption dropped to second in the emerging risks list. (39% of responses) Cyber risk tops the Allianz Risk Barometer for the first time with … The full report is available on our member-only website – please contact [email protected] if you're having problems accessing it. But what if there were other ways for businesses to personally identify their users in a way that allows them to categorise their intentions? The prime objective of a COVID-19 passport is to unequivocally tie the individual to their immunity information, there is no better way to do so than by physically connecting those two aspects though the unique fingerprint. Every day’s headlines bring new reminders that the future is on its way, and sometimes it feels like new risks and response strategies are around every corner. However, this doesn’t mean that the next 12 months will instantly return to life before lockdown. This year, geopolitical and macroeconomic risk rose to become the highest-ranked emerging risk. This should essentially empower businesses to make the most well-informed decisions to enable trusted connections between companies and people using their services. Risk levels can then be assessed by providing insight into the history of malicious activity associated with an IP address, reducing the potential for bad actors and fraudsters before they log into the website. In the past month, seven major airlines including Lufthansa, Virgin Atlantic, JetBlue and United Airlines have signed onto the World Economic Fund’s CommonPass programme which calls for global digital proof of vaccination tied to ID documents ahead of travel. Lack of understanding of the needs of these consumer groups by the industry. With the news of a COVID-19 vaccine imminent, the end of the pandemic’s stronghold seems to finally be in sight. Often, we don’t take enough time to map out the changes in detail, to go down to the real gritty detail of how our vision looks in every important aspect of our lives. Zurich, Switzerland (June 4, 2020) – New risks and trends accentuated by the COVID-19 pandemic are emerging, but the current crisis shouldn’t overshadow the need for the world to transition to a more sustainable economy and a low-carbon future, … Blog. That’s why, for the seventh consecutive year, AXA has conducted its annual survey of emerging risks. Data has been an intrinsic part of the digital evolution to help companies make business critical decisions quickly, and the security aspect is no different. While other industries have struggled their way through the impact of the pandemic, online casinos saw an increase in the number of players, with a 43% increase in the number of daily online poker players and more astonishingly, a 255% increase in first-time players. Necessary cookies are absolutely essential for the website to function properly. Only then can you truly make critical, real-time decisions that protect you, your business and your customers. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Digital skills. With this however comes a host of emerging risks and security concerns. For many emerging risks, ERM leaders can identify low-cost, low-regret responses that do not rise to the level of full risk mitigation. Inevitably, technology will play a vital role in guiding our re-entry into an altered world. It’s worth noting that there are always opportunities in time of change. The next normal is paved with digital interactions online, an environment that can be highly vulnerable to attacks. This also reduces friction for low risk customers going through the authentication process. What if there was a way to link the most essential information about a user? Though we are tied up with various advertising and affiliate networks, this does not affect our analysis or opinion. It suggests those who could prove, via two negative tests, that they do not have the virus, would enjoy the luxury of fewer social distancing restrictions. Access to banking. The latest statistics from the UK Gambling Commission show a 12.5% increase in remote bingo, and 5.3% increase in remote betting; an area that is likely to witness a continued increase as lockdown conditions are extended. Cyber incidents. Theft and fraud jumps to third in this year’s survey – a sign of both its ubiquity for … Global experts also see the risk of extreme heatwaves and destruction of natural ecosystems increasing, as well as a rise in cyber … Its concept uses a smartphone app to verify a fan’s vaccination status or whether they’ve tested negative for a 72-hour window. Colleges who take steps to address these emerging risks not only decrease their chances of losses, but also become a better risk for insurers to underwrite. With online gambling, understanding who you are dealing with is crucial to characterising that person’s intentions. T he fluctuations in the risks, as well as new risks highlight the ongoing disruption in the sector. With 5G infrastructure projects well underway, 2020 is expected to be the year in which the technology becomes commercially viable. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you, or make a purchase or fill a form. The ORX Operational Risk Horizon study does the hard work you. The 15th edition of the Global Risks Report, published by the World Economic Forum with support from Marsh & McLennan, provides a rich perspective on the major threats that may impact global prosperity in 2020 and over the next decade. As we deal with life, our default is that we take ourselves for granted and think this is just the way we are. Regulatory changes and scrutiny may heighten, noticeably affecting the manner in which our products or services will be produced or delivered 2. And, turning this thinking on its head, the way that machines are being developed to attempt to catch up with us, is by learning how to process the micro rather than the macro. This could mean they could either look to provide new products that are uncorrelated with property losses or reduce their exposure in this sector. As such, most global futureproofing strategies revolve more around mitigation and living in our new normal, than eliminating the virus altogether. Yet to even have got as far as appreciating this in ourselves, we need to have gone to the Micro level to understand how when we are projecting our facial expressions change, the tone of our voices rise or fall and the words we choose to speak have developed a pattern. The result of such a biometric digital identity is an ecosystem of universal trust and confidence. Natural Disasters This points to our abilities to be able to hide away from ourselves both when things are negative or when we are embarrassed by praise or getting attention. 2019 has been a bad year for cybercrime. Sweeping large scale Macro changes may sound great, but as we know with New Year’s Resolutions, they often don’t get past February. But postponing action on emerging risks can be detrimental. 2020 will be important for companies to take a strong stand on climate change and show the world how they’re changing to address it or risk being ostracized for failing to act. A comprehensive approach to security in these instances should involve using data to track, trigger and treat any infiltrations through an authoritative understanding of each and every person that uses your website. Using AI and content mining capabilities to convert traditional in-house “flat” files — policy, risk and loss reports, correspondence, etc. Cybersecurity, the impact of heightened regulatory scrutiny, succession challenges and the ability to fend off competition from “born digital” companies are among the top risks for business executives in 2020, according to Protiviti’s eighth annual Executive Perspectives on Top Risks. Housing finance A decade on from the housing crash, new risks are emerging Shadow banks originate around half America’s mortgages Special report Jan 16th 2020 edition Supply chain attacks are on the rise. Take a look at our other operational risk research, Operational Riskdata eXchange Association (ORX), c/o VISCHER Genève Sàrl, Rue du Cloître 2, 1204 Genève, Switzerland 01225976362, ORX Operational Risk Horizon summary report 2020. Over 45 financial institutions took part in the 2020 study, from both the banking and insurance sectors. Cyber Risk. Calculating insurance for businesses against climate damage has largely been built on historical data. Quite predictably, this has also led to an increase in fraudulent attempts – from credit card fraud, whereby fraudulent or stolen credit card information is used, to chargeback abuse, when someone contacts their card issuer and denies making a charge they already made; and chip-dumping, which is when a fraudster launders money or pay for black market services. Industries across the board from retail, to travel and hospitality, automotive and healthcare are all at risk of being infiltrated by relentless opportunists. With the amount of IoT devices coming online, this means that botnets could become even more powerful and commonplace. The report draws on feedback from nearly 800 global experts and decision-makers who were asked to rank their concerns in terms of likelihood and impact. Gone are the days of a physical security team eyeballing people in person to ascertain their integrity. However, for SMEs it also means dealing with a number of new and emerging risks that threaten business operations. These cookies do not store any personal information. The prospect of adding even more login credentials, personal details and – now – health-related data to their digital footprint is unsettling for many. The hosting, storage and presentability of that ‘green light’ is where digitisation comes in. In China, citizens have been using a QR code-based movement passport since the virus outbreak. The risk landscape is changing fast. Global Banking & Finance Review® is a leading financial portal and Print Magazine offering News, Analysis, Opinion, Reviews, Interviews & Videos from the world of Banking, Finance, Business, Trading, Technology, Investing, Brokerage, Foreign Exchange, Tax & Legal, Islamic Finance, Asset & Wealth Management. Instead of just looking at the risks individually, we have also considered the key themes that were apparent in the study – climate change, AI and resilience. For the first time in over 40 years, the U.S. Department of Education is expected to roll out new Title IX regulations in 2020. We also use third-party cookies that help us analyze and understand how you use this website. Digitalisation is affecting all aspects of life, and its impact has reached across the operational risk landscape. To develop we need to see the Micro in ourselves and our own. Is cyber risk really an emerging risk? Authorising with a fingerprint further assures that there can be no doubt of the link between each person and the information they’re presenting. Regional Risks for Doing Business. More than ever, firms will need to shore up their cyber defences and educate employees, at all levels, to the emerging risks. Firms' submissions focus on the physical risks as well as the risks associated with transitioning to a lower carbon economy. 78% of survey respondents said they expect "economic confrontations" and "domestic political polarization" to rise in 2020. With almost infinite sub-categories of emerging threats, fraud now costs the global economy £3tn profession per year, with losses growing by 56% in the last decade. In the face of this, it's difficult to define, understand and then manage the risks your firm is now facing. It is mandatory to procure user consent prior to running these cookies on your website. This category only includes cookies that ensures basic functionalities and security features of the website. Brave new world: Emerging risks in 2020 . The virus itself will of course still be in play next year. Here, “players” lose to a single individual who cashes out their apparently legitimate winnings. However, financial services institutions are particularly vulnerable to online fraud, with money literally being on the line while under constant threat. Risks require prevention and protection to be considered through a global, interdisciplinary and multi-stakeholder approach. To help you with this challenge, we survey our membership annually to see which risks they think will be top of the agenda for the coming year. Cyber security experts and voluntary groups such as the COVID-19 CTI League are mobilising globally to provide threat intelligence and combat these attacks. World Economic Fund’s CommonPass programme. 0 Comments. European Risk Management Awards: Emerging Risk Initiative of the Year Award Published on 07/12/2020 The corporate world today is highly interconnected and international, and so are the rising challenges of managing risk initiatives. Sitting down or taking time to do this on a regular basis, revisiting it as necessary and adding to the map, sets the groundwork for reasoned and worthwhile personal development. The terms “group think” and “unconscious bias” are two more examples of Macro thinking that can hold us back in our personal development or in making the changes that we want to make in ourselves. This “fitting in” or hiring someone who is in our mould does not move either ourselves or society forward because the Macro is limiting us in our choices. Prepare for Title IX changes. we can be aware or unaware of it, depending on our level of reflection and self-understanding. Virtual Conference on Income Share Agreements. 2020 is expected to see a continuation, or even an increase in the level of attacks, with Cybercrime Magazine predicting that by 2021 attacks will cost $6 trillion annually. – into usable insight, combined with the continued use of outside data and emerging sources (such as the Internet of Things), will enable carriers to take a significant step in becoming analytics-driven businesses. While we are synthesising all this thinking, we get into the habit of Micro thinking about everything – without it being a burden. In theory, it’s a logical way to accelerate post-lockdown life, but it does require the public – who are already cautious about storing personal details in digital applications – to add an extra layer of data to their footprint.