‘Grassroot movements’, strikes, and civil commotion are risks that every business must consider, warns CHC Global, as they will likely disrupt businesses and affect organizational resilience throughout 2023.
The Malicious Risk Report, published annually by CHC Global, aims to help organizations understand their exposure to risk, providing analysis of recent developments including extremism, the malicious use of technology, and violent protest movements. Even well-established industries in stable democracies must be prepared for the possible impact of being targeted by increasingly disruptive and potentially violent activism says the report.
Chris Holt, MBE, Chief Executive of CHC Global says: “By having a clearer understanding of the risks to an organization from malicious perpetrators, risk managers and CEOs can start to consider how these might have far-reaching consequences for their organization. These risks are not just financial but can also impact operations, reputations, supply chains, and operatives who work in or close to high-risk areas. This report provides an overview of how global events can impact organizations, providing a deep analysis to help organizations mitigate the risks.”
Other significant areas of malicious risk identified in the strategic Malicious Risk Report include:
Strategic competition: in a world of increasing economic integration, the destabilisation of certain regions caused by the competition between powerful states can have far-reaching consequences. The conflict in Ukraine has already shown how concentrated military aggression by a regional power can impact economies globally, with fallout from global sanctions as well as increased competition for natural resources. Increasing tensions in the South China Sea also have the potential to significantly destabilise global supply chains and economic stability, as well as cause civil and political unrest.
Expansion of non-state armed group activity: the threat from Islamic State and Al Qaeda remains high, with dominant centres of activity continuing to develop in vulnerable African states. In turn, this triggers further economic and geopolitical insecurity and provides additional opportunities for criminal activity. The expansion of Mexican cartel influence over neighbouring states, such as Guatemala, is likewise driving wider regional instability across Central America.
Exploitation of available technology: the boundaries between many threats are blurring, driven significantly by the exploitation of technology. The number and scale of cyber attacks on governments and commercial organization in the last year are noteworthy, with an increased level of activity related to the Russia/Ukraine conflict. Alongside governments, malicious cyber activity also targeted infrastructure and high-profile commercial entities in countries in North America, Europe, and East Asia. Moreover, technology is increasingly being exploited for the development of homemade weapons, such as improvised drones and 3D-printed firearms.