To the outside world, the global business risks of the past years might not be any different from the ones that are to come in the next decade. However, this might not be the case and as a business owner, it is important to keep abreast of what it is to come. In the recent survey, executives and decision-makers including Neil Haboush have identified the major global business risks for 2020.
What are these risks? Let’s explore the top global business risks in 2020 with Neil Haboush.
1. Cyber Attacks – Global Business Risks
Cyber-attacks rank as the most important global business risks attacking organizations globally. With business going digital, threats to data, vital information and documents are increasing exponentially. Businesses are faced with increasing cyber-attacks of data breaches, system downtime or IT failure to mention but a few. The target most times have been large organizations being exposed to various cyber crimes. Ransom ware is just a few of the whole picture. Businesses can find themselves struggling with repairing a reputation they have built for years. Either you are a large organization or small business, cyber crimes might be lurking around the corner. Understanding the level of risk and the likely sources will be a great way to understand how to respond says Neil Haboush.
2. Innovations and Technologies
Emerging technologies can require new skills or extra efforts on organizations’ parts to train existing employees. Artificial intelligence, 3D printing, block chain, nanotechnology, Internet of things (IoT) autonomous vehicles and so much more will put small businesses who could not invest in these technologies at a disadvantage. Moreover, these innovations can put pressure on national and international securities, disrupts the economic stability and increase threats to cyber security.
3. Changes in Legislation and Regulation
From taxes to tariffs, to interest rates, to Brexit to protectionism, politics will affect the operation and profitability of businesses in 2020. In 2019 alone, business operations have been affected by almost 1300 US new trade barriers. Latin America is still experiencing political unrest, China is becoming more assertive with its foreign policy, and the European Union will likely brace up for antitrust battles with the US tech giants. These are evidence of increased divisiveness, fractious international relations causing push backs on international trade. National politics in different countries are imposing various legislations and regulations and this is not stopping anytime soon.
4. Natural Disasters – Global Business Risks
As much as some global business risks originated from humans, nature is also taking its toll on businesses. There are also the risks of natural disasters and the destruction of natural ecosystems. When a natural disaster such as massive flooding, hurricanes or earthquake strikes, it can cause damage to the company’s asset. Extreme heat waves destruction and fire are major threats in 2020. A good example is the Australian bush fires of 2019/2020 which has burned over 18 million hectares, destroy 5,900 buildings with millions of animals being dead. Catastrophes caused by nature is something that is most times overlooked by business, but its impact is always huge.
These global business risks analyzed by Neil Haboush serves as a call to action for businesses and entrepreneurs to better equip themselves to manage risks.