IT professionals who prioritize digital transformation often neglect the geopolitical and environmental risks that may affect their firms. However, Future Market Insights (FMI), an ESOMAR-certified market intelligence firm, warns that the success of an organization depends on understanding these risks. Industrial policy concerns, cybersecurity threats, and shifting technical regulation are some of the hazards that can range from affecting governmental organizations to private IT companies. Cybersecurity is one of the most visible manifestations of the relationship between technology and geopolitics. Cyberattacks motivated by geopolitics have a big impact on cybersecurity, risk management, and digital transformation strategies. Thus, many IT leaders look to a cyber risk balance sheet preparedness strategy as a reliable IT contingency plan.
Creating a cyber risk balance sheet is a “power move” that IT executives may undertake to enhance their decision-making about cyber risk. It integrates cyber hygiene with the current corporate risk management mechanism. This integration fosters knowledge, promotes wise conduct, and incentivizes sensible investments in the company. A cyber risk balance sheet methodology for quantifying cyber risk should be created, which is tailored to the organization’s risk profile. The balance sheet combines planned or present investments in cyberspace with the likelihood of in-scope cyber threats and liabilities. Leaders can focus on building organizational resilience. IT organizations must strengthen their organizational resilience since many challenges, from geopolitics to economic instability, from climatic changes to public health, and from talent to supply chain, make it difficult for various IT companies globally. An effective way to achieve this resilience is to approach it from three angles: operational, financial, and human.
Effective governance, risk, and compliance (GRC) programs are being implemented by various IT companies for better security. GRC is a methodical strategy to manage geopolitical and environmental risks, comply with all industry and governmental laws, and integrate IT with business objectives. It consists of methods and tools for integrating technology innovation and adoption with a company’s governance and risk management. By implementing GRC programs, businesses may enhance their decision-making within a risk-aware culture. An effective GRC program may help key stakeholders set policies from a shared perspective and conform to regulatory requirements. GRC harmonizes the firm’s overall policies, decisions, and activities to streamline corporate procedures around a common culture that supports moral standards and promotes an atmosphere that is conducive to growth.
Innovations like the Internet of Things (IoT), operational technology (OT), and quantum pose risks related to data privacy, third-party security, identity fraud, and IT regulatory compliance in complicated technical contexts. To centralize and supervise risk management while satisfying compliance and reporting requirements, IT executives must combine these contact points. For instance, IBM® provides all-inclusive, product-neutral GRC and data privacy, as well as identity and access management (IAM) services from planning through execution.
In conclusion, the specific link between corporate globalization and geopolitics must be understood by different IT leaders. They must chart the “sites of risk” for corporate entities in their operations and adopt forecasting tools to improve their decision-making. Therefore, IT professionals who prioritize digital transformation must take heed of the geopolitical and environmental risks that may affect their firms.