The pace of development in the technology industry is high, which defines the need for up-to-date information regarding threats for executives to make informed strategic decisions. In particular, economic risks for organizations engaged in global trade are essential to consider. Generally speaking, this category of threat refers to risks associated with changes in the business environment or negative impacts of macroeconomic factors, such as swings in exchange rates, government policies, or fiscal crises. As the technology industry evolves, it needs to consider a wider range of economic factors affecting the sector. In particular, a video by PwC US (2014) about costs and revenue opportunities associated with risks highlights privacy and security as the two primary areas of concern. A survey has revealed that about 56% of technology CEOs consider cyber threats and data security problems as significant deterrents to growth (PwC US, 2014). Therefore, it is critical to address this problem and prepare the business for the potential cost and revenue opportunities associated with risks.
To neutralize the economic risks in the technology industry, companies can explore the market and business environment of the countries that they cooperate with in order to understand the threats involved. Furthermore, it is essential to invest in cybersecurity tools and information security programs to protect sensitive data from hacking organizations and individuals and prevent information leaks. In the technology industry, data security is essential for growth and customer trust, considering the amount of personal data obtained and stored in customer bases (PwC US, 2014). In this regard, all employees in the company should be involved in cybersecurity risk management. Training is essential to implement effective strategies and eliminate risky behavior among the organization’s staff.
References
PwC US. (2014). Costs and revenue opportunities associated with risk in the technology industry [Video]. YouTube.