User:Erica n hsieh/sandbox

= Business Risk = Business risk refers to the risk of loss that an organization is subjected to due to unexpected changes in the competitive environment or to trends that bring damage to the franchise and / or operating economics of a business. In today’s business climate, one of the top business risks in large swathes of the world’s economic-powerhouse cities is the prospect of cyber-attack, as found by a study done by the Regional Risks for Doing Business report, an interview of over 12,000 executives across the world. This risk tended to be viewed as a greater risk among executives in more advanced economies, particularly the top 19 countries from Europe, North America, India, Indonesia, Japan, Singapore, and the United Arab Emirates.

According to Bromium’s EMEA CTO Fraser Kyne, businesses are spending an estimated USD 118 billion on cybersecurity, globally, but are still suffering from cyber-attacks despite their investments. These cyber-attacks have been described as simple, but they have been very effective because cybersecurity architecture is typically built on a premise that overwhelmingly relies on detecting threats, which means that if it is unable to detect new threats – because of their newness –, it is simply unable to see the threat at all, making it an ineffective defense system. Furthermore, the trends of cyber-threats continuously evolve and adapt to take advantage of weaknesses in systems and procedures, even more so through the rise of global cloud computing and data storage.

Some forms of business risk are less evident, less measurable, and are seemingly-innocuous, but have been known to leave companies vulnerable when they least expect it. An example of this would be poor communication or simply, poor use of words in the plane of context. Eric McNulty, the director of research at the National Preparedness Leadership Initiative warned that “skewering” of corporate-speak is not a light matter, as “our words will determine our future and the futures of our companies, industries, and societies”. Research over the past decade has also shown that executive candor can affect financial performance; a Forbes research showed that companies excelling in candid communications posted returns that were up to double the average of the market, and that companies that have failed to demonstrate consistent and appropriate candor consistently underperformed the market. In this regard, the business risk is less financial and can even be subject to weight of opinion and implementation, but it can be a dangerous prospect for an organization to ignore the possible implications of leaving certain variables and factors to fate or recklessness. This can be particularly important with how a company words the contents of its website or advertisements, for instance.

The presence of business risk entails the use of risk management techniques, as a measure to mitigate risk exposures and help lower the types of losses the organization is set to face. The objectives of risk management are to minimize, control, and monitor the probability and / or impact of risk.