Business Risk Preparation: The Interlocked World Of Technology, Geopolitics, Regulations And Cybersecurity
In recent years, there’s been a dramatic shift in how businesses operate, how countries cooperate, how people work and the level of technology automation that’s being introduced across industries. At the intersection of these rapid innovations and increased international instability, new risks are apparent. Let’s understand some of the top risks organizations need to be prepared for.
1. Impact Of Geopolitics On Supply Chains
The situation with Ukraine was a wakeup call for many company leaders. Prior to the conflict, some leaders assumed business as usual. It’s an oversimplistic example, but supply chains were disrupted for lack of contingency planning.
Everything from chips to power, from mobile phones to cars, felt the impact. Few fully grasped the mineral resources being siphoned from Ukraine. By the same reasoning, we’re oblivious as to what goes into making a smartphone. Where do the different components come from? We don’t give mind as to which components could be in short supply. We just want our phone to work flawlessly.
2. Growing Security Risks Following AI Applications
Many use cases of generative AI have yet to reveal themselves. For instance, if we look at the development of future smart cities, they will likely be dependent on AI to function effectively. Predicting air quality, power and water supply usage, anticipating traffic congestion and having the need for more transportation options all veer toward making business sustainable.
3. Environmental Challenges Posed By Quantum Computing
Quantum computing is similar to AI because of its powerful ability to reduce energy and time requirements. Although the technology has yet to mature, when it does, it will process information at a fraction of current speeds. This will likely prove to be revolutionary if one considers the nontrivial implications on energy consumption and cybersecurity. Quantum will require immense computing power, consuming vast amounts of power and generating a substantial degree of heat.
As organizations drive hard in pursuit of limitless innovations, we simply cannot divorce laws of nature from the consequences these things will bear on it. The quantum computing debate is similar to the electric car debate; sure, electric cars lower emissions, but what about the downstream pollutants these charging stations are producing or the minerals being extracted to create rechargeable batteries? Company leaders need to analyze these ramifications more closely and holistically for their potential impacts on business.
