The New Riskonomy

Getting ahead of the game

Foreword

In a crowded, highly competitive marketplace, every business is innovating for an advantage. Rapid advances in technology are catalysing this competition, offering previously unimaginable opportunities for product development, business optimisation and profit.

The New Riskonomy investigates some of the most pressing factors when it comes to tech risk, particularly in light of the recent surge in generative AI.

Cloud computing, for example, allows organisations to radically reorganise their physical footprint. Digital platforms offer diverse and personalised customer communication channels. IoT and AI augment supply chain operations and inventory management, and automated data analytics enables faster and more accurate trend-spotting. The result? Business leaders have strategic new tools to help cut costs, optimise performance, make decisions and outmanoeuvre their opponents.

But this power pushes businesses deeper into the unknown. Technology-associated risks run the gamut of hardware failure and human error to critical skills gaps, data privacy violations and cybersecurity attacks – risking litigation, fines and reputation loss. If they come to the table under-prepared, businesses have more at stake to lose than to gain.

Business leaders are tasked with protecting their organisation from external threats like cyberattacks, while also assessing risk exposure in their supply chain, and ensuring internal systems and processes are secure.

This is the riskonomy; the interconnected variables that business leaders must carefully balance if they are going to protect their organisation from digital threats.

It’s undeniable that this changing technology landscape is posing a challenge to organisations – but those challenges are so varied that it can be difficult for business leaders to prioritise their firm’s vulnerabilities and identify the sources of risk. This is where legal teams can be crucial navigators to increase the odds across the board.

The New Riskonomy investigates some of the most pressing factors when it comes to tech risk, particularly in light of the recent surge in generative AI. The insights aim to help C-suite and GCs consider the risks they’re facing and devise a clearer path to minimising their exposure and maximising their opportunities with support from their legal teams.

Using our new benchmarking methodology, the Riskonomy Radar, business leaders can assess how their organisation is performing when it comes to tech risk management. And most importantly, it can help them identify areas for improvement in their policies and processes internally, externally and within their supply network.

This is where our expertise at Hogan Lovells can help our clients get results, and support their legal teams as crucial navigators to increase the odds across the board.

Des Hogan

Global Head of Disputes

Des Hogan

Global Head of Disputes