Categories ArchivesNews and Analysis

How U.S. Companies Can Play a Role in Latin America’s Growing Cyber Economy link

The transformation of Latin America’s economy towards knowledge and technology dependence begs American businesses to engage more in the region than ever before. The “pink tide” of economic orthodoxy and integration in Latin America has led to an unprecedented boom in innovation and entrepreneurship. More importantly, these orthodox economic policies have lifted millions of people out of poverty and into the middle class. Critical to the success of these policies is a technological revolution which places consumers and businesses at the forefront of progress and prosperity. Despite the hesitancy by the current U.S. administration towards investment in Latin America, the U.S. private sector must lead the charge in the hemisphere’s changing economy. Failure to do so can result in missed ...

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The Growing Threat of Virtual Terrorism link

Cyberspace has been used to recruit, fund, coordinate, and execute terrorism for well over a decade now, however the threat posed by Virtual Terrorism (VT) has never been greater, nor has its potential to launch attacks through strokes on a keyboard. Prior to the birth of the Islamic State (IS), Al Qaeda had already called upon its adherents to wage ‘electronic jihad’ through ‘covert mujahideen’ to launch cyber-attacks on the West’s governments and infrastructure. Five years ago, the gap between terrorists’ intentions and capabilities was already closing. Today, there is relatively little preventing VT from becoming an even more serious threat. To emphasize the seriousness of the problem, the U.S. Department of Homeland Security (DHS) has stated that “cyberspace is ...

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Markets Need Capital, Investors Need Comfort link

Despite all the headlines about risk and uncertainty – of which I have been a serial contributor – the world is flush with cash and ripe with opportunity. While the backdrop of this potential risk-reward trade off seems dire, especially with the return of economic nationalism, there are nevertheless many opportunities to bridge the “capital and comfort” gap. The first step is to identify which markets and which industries are investment grade, despite the potential political risk factors in a given country. Similarly, it is critical for investors to make risk and risk transfer a front-end determination as opposed to an investment afterthought. All of this, of course, presupposes a profound shift in attitudes in investment committees about what constitutes ...

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Deglobalization and the Rise of Smart Protectionism link

Globalization was intended to eliminate borders for the benefit of the free flow of trade, investment, information and people. It has had a good degree of success in accomplishing that, but the blowback from the globalization process has had a variety of unintended consequences, ranging from the breakdown of democracy in some countries and various forms of social disintegration to the spread of disease and deterioration of the environment. Another is the rise of self-interest among individuals and countries that believe they have either largely been left out of the process, or have failed to benefit from it in a meaningful way. Whether actually justified based on facts, those American voters who subscribed to this view as a justification for ...

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Governing Risk or Governed By It link

Senior executives and boards are learning the hard way that the buck does, in fact, stop with them. This is painfully true when it comes to risk governance and the reality that in the smoking crater of complex risks such as cyber threats, reputation risk and the erosion of stakeholder trust, they are the ones left to pick up the pieces. At best, they can endeavor to reassemble their organizations under the discretion and dignity of privacy — a luxury in the era of rampant cyber threats. At worst, they are carted in front of an angry Congressional hearing only to watch their share price and egos take a hit. Somewhere between these two extremes, the reality that most organizations ...

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The Wacky World of GRC standard

Few areas of technology are as contradictory as governance, risk and compliance. A company might do everything to be secure yet still not be in compliance. Evan Schuman investigates. For some, maintaining a focus on the governance, risk management and compliance (GRC) landscape is data security nirvana, the epitome of an ideally balanced data strategy. For others, it’s a maddingly frustrating and impossible task where conflicting geographic rules and industry standards make strict compliance untenable and the attempt counter-productive. Just to make life interesting, it turns out that both these perspectives have a semblance of truth. The most popular suggestion for GRC compliance is to focus on the intent of regulators and standards bodies – most of which base almost ...

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International Trade: A New Chapter in History link

International political observers were shocked by Brexit and then Donald Trump‘s US Presidential victory. These two events are potent enough to unnerve the contemporary global order: first, in matters relating to security and, second as to trade. By the end of next March, Theresa May will likely invoke Article 50 of the Lisbon treaty and the complex process of Britain’s divorce from the European Union (EU) begins. Also, it now has been a more than a month into Trump’s administration; and his flurry of Executive Orders have rocked the Washington, DC establishment. This article examines the future of Multinational Corporations (MNCs) under this new Trump era and – with Brexit clearly on track – how MNCs will respond. Some global ...

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The Quest for Global Risk Agility link

Man-made risks, such as cyberrisk, physical security threats and climate change—are the driving forces in the global threat landscape. Unlike natural risk, which remains a central preoccupation, man-made risks have agency. Simply put, a tornado does not pre-plan where and who it will strike. A cyberattack, by contrast, is generally not a random event. While large organizations can often shield themselves from the financial consequences of many risks, the ensuing reputational harm can irrecoverably erode market share and stakeholder trust. Small- to mid-sized enterprises confront these challenges as an existential threat. The quest for global risk agility is principally a management framework aimed at changing the way organizations and senior leaders think about risk. Rather than making risk an object ...

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A Day Without Pay link

Confronted by so much short term political uncertainty and lack of coordination, many systemic risks, particularly in the financial sector and the economy writ large, are going unnoticed. One of the causes of these blind spots is both the presumption of financial safety in the global economy since the Great Recession, while at the same time a general misperception of what makes a financial institution systemic. Since the dust settled from the global financial crisis and the wave of regulation on banking risk have been implemented, questions remain about the likely causes and locations of the next “big one” in finance. This “big one” may very well stem from widely interconnected payroll and data processing firms that are veritable utilities ...

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The emergence of ransomware and phishing, and the need for an agile response link

In our last article on Corporate Growth, Capital Style, we featured part one of a two-part interview with Natasha Barnes, a Technology Risk Services Manager at Aronson LLC, and Andres Franzetti, Chief Strategy Officer and Founding Member at Risk Cooperative. During our discussion, we talked about a new 360° Cyber Risk Survey being conducted by Aronson, Risk Cooperative and Ridge Global. We also discussed why security is no longer just an issue for the CISO, but rather an issue that every member of the C-Suite should consider. Click HERE to take the Aronson, Risk Cooperative and Ridge Global 360° Cyber Risk Survey In part two of our two-part interview, we ask Natasha and Andres about the evolving risk landscape facing ...

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