Emerging Technologies The risks they pose to your organisations

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

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

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

AON Global Survey 2015 2. 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

Deloitte Strategic Risk Survey 2013 Strategic risk has become a major focus: - Deloitte global survey 2013 - Strategic risk management practices - 300 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 #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

Actions to take

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.

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.

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? 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.

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 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.

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