We also ask them which risks they think will be the key emerging risks over the next three years. Emerging Risks in 2020 and Beyond – New Game, New Rules. For Victoria Melvin, Head of Research - AXA Group … As quickly as risk mitigation evolves, fraudsters are never far behind creating new means of attack to disrupt or bypass online systems. Individuals looking to take devices into shared workspaces/offices will also need cover, in case it’s their device which starts a widespread data breach. 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. By identifying the physical location of an IP address, it can confirm whether a customer has legal rights to access a website, identify accounts that may have been compromised, and it can flag accounts for investigation of collusion or chip dumping. 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. Lack of understanding of the needs of these consumer groups by the industry. We link to various third party websites, affiliate sales networks, and may link to our advertising partners websites. 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. 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. As such, most global futureproofing strategies revolve more around mitigation and living in our new normal, than eliminating the virus altogether. 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. These sites pose as legitimate websites in order to lure victims into sharing sensitive data such as personally identifiable information, user name and password and/or banking information. 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. Unlike modern machines which have an average “mean time between failure / obsolescence” of say, five years, our complexity comes from our average life span, which in the Western World which is in the 80s. Another one of 2020’s biggest fraud trends is the rise of phishing websites. Well, there is a way to do exactly that and more. Clash of efficiency and ethics in new tech applications. The risk landscape is changing fast. A 5G powered IoT 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. Consumers are frequently asked to authenticate their identity with financial institutions, retailers, government departments and healthcare providers for numerous access and confirmation purposes. This year, geopolitical and macroeconomic risk rose to become the highest-ranked emerging risk. You also have the option to opt-out of these cookies. Emerging Risks. 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. 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. Here, “players” lose to a single individual who cashes out their apparently legitimate winnings. Copyright © 2010-2020 GBAF Publications Ltd - All Rights Reserved. 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. 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. However, this doesn’t mean that the next 12 months will instantly return to life before lockdown. That has the potential to revitalise the economy and begin the transition back to everything we have missed over the past year. 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. 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. Not surprisingly, information security and cyber remained the top risk... Geopolitical & macroeconomic leads the emerging risks. 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. Therefore, fingerprint data is held securely on the card, not in a shared database and cannot be subject to a data breach. Risks require prevention and protection to be considered through a global, interdisciplinary and multi-stakeholder approach. Organizations can create new capabilities … £3tn profession per year, with losses growing by 56% in the last decade. The gambling industry, in particular, is at the forefront of this shift to online activity. Fingerprint authentication is an immediate and undeniable verification of the individual person. This has manifested in the concept of a global COVID-19 passport which would confirm our immunity and allow us to move, work, communicate, consume, exercise and interact more freely in the new normal. 0 Comments. It can also limit us in our friendships, our work relationships and ultimately how we feel about ourselves and others. Our participants focused on a wide range of issues, from business disruption and malicious attacks to data protection and innovation. Taking the time to become aware of how we are, behave, think and act at the Micro Level enables us to come to terms with ourselves and be ready to make an informed choice about how we want to be as humans. 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. Economic conditions in markets we currently serve may significantly restrict growth opportunities for our organization 3. 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. Digitalisation is affecting all aspects of life, and its impact has reached across the operational risk landscape. But opting out of some of these cookies may affect your browsing experience. All of these sayings have some value in our developmental thinking and behaviour. With the news of a COVID-19 vaccine imminent, the end of the pandemic’s stronghold seems to finally be in sight. 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. This can be as simple as remembering to change the manufacturer’s default password already installed on the device. Cybersecurity 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. Blog. Below, Ben Davis, Insurance Lead, Emerging Technologies reveals the main emerging risks of 2020. The opportunity therefore exists for us to be targeted and manipulated on multiple devices, via various channels. Only then can you truly make critical, real-time decisions that protect you, your business and your customers. 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. 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. July 22 - August 6, 2020. That’s why, for the seventh consecutive year, AXA has conducted its annual survey of emerging risks. Please seek Professional advice from a qualified professional before making any financial decisions. Ultimately, our approach to digitisation is developing, quickly, and with that comes an increase in organised cybercrime and fraud. Send to . 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. While some may be seen as clichés, they remain current in our everyday language because there are grains of truth in them. 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”. 0 . Personal circumstances. While we are synthesising all this thinking, we get into the habit of Micro thinking about everything – without it being a burden. With the developed markets appearing to be stabilizing, should you look to emerging markets for growth? By Vince Graziani, CEO, IDEX Biometrics ASA. As we deal with life, our default is that we take ourselves for granted and think this is just the way we are. 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” …. The result of such a biometric digital identity is an ecosystem of universal trust and confidence. Over 45 financial institutions took part in the 2020 study, from both the banking and insurance sectors. 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. 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. The idea is those people would only then encounter others with that same level of proof and authentication. 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. Cyber Risk. 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. Where there is opportunity, there will always be risk and cyber criminals are unlikely to quit at the first hurdle. So, what is Micro Thinking and how can it help us to move forward in our personal development, relationships, careers and sense of well-being? First, the risks. With this however comes a host of emerging risks and security concerns. Firms' submissions focus on the physical risks as well as the risks associated with transitioning to a lower carbon economy. Featured Insights. The answer can be found in a digital identity powered by fingerprint biometric authentication technology. 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. 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. 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. This category only includes cookies that ensures basic functionalities and security features of the website. 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. But postponing action on emerging risks can be detrimental. Newsletters with Secrets & Analysis. The 'Risks in focus' section looks at three key risk themes in more detail, examining the risk categories they affect. Our website provides you with information, news, press releases, Opinion and advertorials on various financial products and services. 78% of survey respondents said they expect "economic confrontations" and "domestic political polarization" to rise in 2020. Prepare for Title IX changes. 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. This data-intensive technology can help to tackle fraud in a number of key ways such as verifying locations. The Global Risks Report forecasts a year of increased domestic and international divisions with the added risk of economic slowdown. 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. 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. we can be aware or unaware of it, depending on our level of reflection and self-understanding. If your firm is a member of ORX then you can get the full Operational Risk Horizon report as part of your ORX Membership subscription. 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.