A company is only as secure as its weakest link. From sector-shaking tech disruption, to scammers exploiting a security breach, to irreplaceable talent departing for greener pastures elsewhere, to fraud (both internal and external), businesses in every industry are vulnerable on a number of fronts - with even the most imposing competitive advantage in danger of vanishing overnight.
Because risk is ever-present, so too should be your company’s commitment to spotting and mitigating it. Proactive risk management means scanning the horizon, and anticipating possible economic shifts, supply chain hiccups, regulatory curveballs, and unwelcome changes to every other variable that could darken your business’s future. Each potential threat should inspire a sensible level of strategic adjustment to lessen the company’s exposure.
Turning risk into reward
Well-prepared businesses can actually benefit if threats do materialise and are dealt with swiftly. Although a ship sailing on smooth seas remains untested and therefore unproven, a ship that weathers harsh storms confirms its durability for all to see. By the same token, customers and investors will gain confidence in your company if it is seen to perform well under stress.
Case study
E-commerce platform Lazada faced a growing number of threats to its business model in recent years. These ranged from counterfeit products to fulfillment fraud, dangerous goods shipments, fake reviews, and more. In response, Lazada implemented advanced detection algorithms to identify inauthentic digital behaviour and remove fraudulent listings.
Lazada also partnered with Smiths Detection to install x-ray systems capable of detecting undeclared lithium batteries in shipments, negating potentially serious safety hazards. Other initiatives included collaborating with rights holders to prevent the sale of counterfeit goods.
Lazada had recognised that its success depended on maintaining trust and goodwill across all stakeholders. Thanks to its comprehensive approach to combatting risky behaviour on its platform, scam reports fell by 80% and the company reinforced its reputation as a secure, reliable e-commerce platform, further fuelling its growth in the region.
Another example of exceptional adaptation comes from Kasikorn Bank, which has launched high-tech AI tools which not only protect user accounts and online transactions from potential fraud and theft, but also study authentic user behaviour to improve services in the future.
The bank deploys a combination of biometric authentication, multi-factor authentication, and real-time monitoring systems to secure the reliability of its data systems. Its algorithm can effectively identify suspicious patterns of activity, blocking attempted scams that are already in progress.
On the human side of the equation, Kasikorn educates its customers about potential threats and how to avoid them. These efforts have enhanced customer trust and reduced the number of security breaches that affect the bank and its assets. Although cyberattacks will never disappear completely, Kasikorn’s success in combatting them have boosted the bank’s reputation as a reliable platform that can be trusted with sensitive financial information.
Threats to a company can appear at any time, and every crisis demands quick thinking. But most of the major decisions should have been made - and incorporated into company-wide staff training - long before the threat is at your doorstep. Proactive planning should also include regular risk assessments using data-driven approaches, monitoring newly emerging risks from developments such as entry into new markets, regulatory changes, the introduction of new products, or the adoption of new processes. The examples above show how proactive planning
helps organisations weather the storms that will surely come, in one form or another.
