Emerging Technologies The risks they pose to your organisations

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Gwendolyn McDonald
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1 Emerging Technologies The risks they pose to your organisations 10 June 2016

Digital trends are fundamentally changing the way that customers

wherever they are Social The rise of virtual communities Analytics

security Protection in a digital world 2 Emerging technologies and

2 Digital trends are fundamentally changing the way that customers behave and companies operate Mobile Connecting people and things wherever they are Social The rise of virtual communities Analytics Removing the guesswork Cloud Everything-as-a-service Cyber security Protection in a digital world 2 Emerging technologies and their risk to your organisations Copyright 2016 DCB Holdings and its affiliate

Big bang short fuse Digital disruption 3 Emerging technologies and their

Digital disruption has the power to transform entire

Examples of digital disruption across industries ICT and Media

products obsolete faster than ever For example, companies that

suffered two waves of digital disruption: 1.

The improvement in camera phone quality, reducing the demand

penetration has resulted in explosive growth in e-commerce,

retailers are growing rapidly at the expense of physical

ASOS, a UK-based company, has experienced annual growth of 40%

acceptance of mobile banking and payments based on multiple

financial services companies New digital entrants are

4 Digital disruption has the power to transform entire industries. Examples of digital disruption across industries ICT and Media Retail Trade The pace of innovation has increased, making products obsolete faster than ever For example, companies that used to dominate the camera and photo film industry have suffered two waves of digital disruption: 1. The transition from photographic film to digital photography 2. The improvement in camera phone quality, reducing the demand for standalone cameras Increasing internet and smartphone penetration has resulted in explosive growth in e-commerce, m-commerce and multi-channel retailing Online-only clothes retailers are growing rapidly at the expense of physical stores. ASOS, a UK-based company, has experienced annual growth of 40% with revenues over 500m Financial services Rising use and acceptance of mobile banking and payments based on multiple competing platforms has the potential to disrupt incumbent financial services companies New digital entrants are threatening the role of traditional retail banks with innovative lending models such as P2P and internetbased payday loans 4 Emerging technologies and their risk to your organisations Copyright 2016 DCB Holdings and its affiliate

5 AON Global Survey Top 10 major risks 1. Damage to reputation / brand Economic slowdown / slow recovery 3. Regulatory / legislative changes 4. Increasing competition 5. Failure to attract or retain top talent 6. Failure to innovate / meet customer needs 7. Business interruption 8. Third party liability 9. Computer Crime / hacking / viruses / malicious code 10. Property damage 5 Emerging technologies and their risk to your organisations Copyright 2016 DCB Holdings and its affiliate

Failure to attract / retain new talent 6 Emerging technologies and their

Failure to attract retain new talent 7 Emerging technologies and their

Increasing competition 8 Emerging technologies and their risk to

9 Deloitte Strategic Risk Survey 2013 Strategic risk has become a major focus: - Deloitte global survey Strategic risk management practices major companies globally - 81% of surveyed companies explicitly manage strategic risk over and above traditional areas such as operational, financial and compliance risk Strategic risks those that either affect or are created by business strategy decisions can strike more quickly than ever before, hastened along by rapid-fire business trends and technological innovations such as social media, mobile and big data 9 Emerging technologies and their risk to your organisations Copyright 2016 DCB Holdings and its affiliate

Reputation cited as the #1 risk 10 Emerging technologies and their

Reputation cited as #1 risk Reputation risk is now the biggest risk concern: Due in large measure to the rise of social media, which enables instantaneous global communications that make it harder

11 Reputation cited as #1 risk Reputation risk is now the biggest risk concern: Due in large measure to the rise of social media, which enables instantaneous global communications that make it harder for companies to control how they are perceived in the marketplace. One of the big changes in recent years is speed to market, says ANZ s Jennifer Evans. As a consequence of social media, reputations built up over decades can be challenged in an instant 11 Emerging technologies and their risk to your organisations Copyright 2016 DCB Holdings and its affiliate

Emerging technologies have the power to disrupt business models 12 Emerging

Emerging technologies have the power to disrupt business models 13 Emerging

14 Actions to take

Have an explicit focus on strategic risks 15 Emerging technologies and

Boards and CEOs driving strategic risk management 16 Emerging technologies and

Questions to ask Questions to ask CIO/IT about emerging technologies Which technologies or other opportunities have the potential to provide substantial or transformative benefits for the company?

17 Questions to ask Questions to ask CIO/IT about emerging technologies Which technologies or other opportunities have the potential to provide substantial or transformative benefits for the company? Is our data structure appropriately and thoughtfully organized, and does it mitigate the risk of critical information leaving the company? Mobile How do we secure our mobile devices and disseminate a policy governing their appropriate use? 17 Emerging technologies and their risk to your organisations Copyright 2016 DCB holdings and its affiliates.

18 Questions to ask Cloud Is our organization using cloudbased computing, and if so, have the financial benefits been weighed against the attendant risks? Do we have a plan for monitoring cloud specific risks? How can cloud-based and traditional systems be integrated to create centralized solutions that provide secure and predictable performance and reduce redundancies? Which systems should be based in the cloud, and which should be operated on-site? 18 Emerging technologies and their risk to your organisations Copyright 2016 DCB holdings and its affiliates.

19 Questions to ask Social Media Do we have a thorough policy regarding social media usage by employees that is understood throughout the organization? To what extent does the company leverage social media, and how? What are the most significant social media risks the organization faces? How do we monitor internal social media usage, as well as external mentions of the organization on social media outlets? 19 Emerging technologies and their risk to your organisations Copyright 2016 DCB holdings and its affiliates.

Questions to ask CyberSecurity How do we know who is logging into our network, and from where? How do we track what digital information is leaving our organization and where it is going?

20 Questions to ask CyberSecurity How do we know who is logging into our network, and from where? How do we track what digital information is leaving our organization and where it is going? Do we have an effective data loss prevention program? Which cyber threats and vulnerabilities pose the greatest risk to the organization s business and reputation? What are the key assets to be protected? What is our strategy to address identified weaknesses? What systems are in place to protect information transferred through mobile technologies? Is there a culture of responsibility with regard to using mobile devices? 20 Emerging technologies and their risk to your organisations Copyright 2016 DCB holdings and its affiliates.

21 Questions to ask CyberSecurity Is management focused on making cyber risk part of everyone s job, and not just IT s? Do we have the right gauges to measure the success of our cyber threat management program? Are we planning to map our policies to an industry standard Security Framework? What are our training programs to educate our workforce about cyber risks and responsibilities? 21 Emerging technologies and their risk to your organisations Copyright 2016 DCB holdings and its affiliates.

Tips for enhancing Cybersecurity Governance Focus on controls for the most critical data areas Evaluate the cyber incident response plan Annually review

developments in technology and cybersecurity Confirm that privacy and security requirements for vendors (cloud, mobile, hosting) comply with the company s security

22 Tips for enhancing Cybersecurity Governance Focus on controls for the most critical data areas Evaluate the cyber incident response plan Annually review cybersecurity budgets Require regular reports based on key risk indicators rather than on project status Work with specialists to stay apprised of recent developments in technology and cybersecurity Confirm that privacy and security requirements for vendors (cloud, mobile, hosting) comply with the company s security program Conduct an annual evaluation of the use of and need for cyber insurance 22 Emerging technologies and their risk to your organisations Copyright 2016 DCB holdings and its affiliates.

23 Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee ( DTTL ), its network of member firms, and their related entities. DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as Deloitte Global ) does not provide services to clients. Please see for a more detailed description of DTTL and its member firms. Deloitte & Touche is an affiliate of DCB Holding Ltd., a member firm of Deloitte Touche Tohmatsu Limited. Deloitte provides audit, tax, consulting, and financial advisory services to public and private clients spanning multiple industries. With a globally connected network of member firms in more than 150 countries and territories, Deloitte brings world-class capabilities and high-quality service to clients, delivering the insights they need to address their most complex business challenges. Deloitte s more than 200,000 professionals are committed to becoming the standard of excellence. This communication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively, the Deloitte Network ) is, by means of this communication, rendering professional advice or services. No entity in the Deloitte network shall be responsible for any loss whatsoever sustained by any person who relies on this communication DCB Holding Ltd. and its affiliates

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