There exists a major need for a regulatory mechanism to facilitate access of information for detection of crimes perpetrated through the misuse of social media. Madhur Verma, Deputy Commissioner of Police, Delhi, underscored this need while addressing a FICCI seminar on ‘New Age Risks-2018’.
Verma said that businesses today, especially those engaged in international operations, have to contend with cyber crimes relating to transfer of money through fake e-mails and this throws up a huge challenge for the enforcement agencies in detecting the fraud.
He said the Delhi Police had created a separate cell for dealing with cyber crimes and was trying to create awareness on the nature and the enormity of crimes, especially those channelised through the social media, by reaching out to schools and the community at large.
The occasion witnessed the launch of the seventh edition of the FICCI-Pinkerton ‘India Risk Survey 2018’.
Cmde Sujeet Samaddar, Senior Consultant (Industry), NITI Aayog, categorised the new age risks as business, economic, legal & compliance and technology risks. He underlined the need for predictability, credibility and stability of the legal and compliance regimes in order to make businesses viable and sustainable. The biggest risk to business is to take the business-as-usual approach rather than a transformational and disruptive one, he added.
The new digital environment and the multiplication of technological options raise challenges and risks for which businesses should prepare themselves said Mr. Rahul Chaudhry, Chair, FICCI Homeland Security Committee.
Rohit Karnatak, Managing Director India, APAC & EMEA – Global Screening, Pinkerton said, “In today’s time, policy makers and business leaders can truly fulfil their role by timely anticipating risks. Pinkerton utilises a data driven comprehensive approach to corporate risk management, aiming to use tools like Artificial Intelligence to anticipate risks, their probability and their potential impact to businesses”.
Venkat Ramana, Co-Founder & Director, Valuepitch E Technologies, said, “The crime rate in India can be lowered with the help of technology and training. Discovering previous antecedents along with real time situation monitoring without invading privacy is the challenge that needs to be addressed.”
Data Theft, Phishing, Hacktivism most prevalent cyber threat
The India Risk Survey (IRS) 2018 states that Infrastructure Risks, Occupational Hazards at Workplace and Legal Regulatory Risk as the Emerging Risks of 2018.
While most destruction could be mitigated with proper maintenance of existing infrastructure, effective prediction analysis of future weather conditions is crucial to reduce the sheer volume of damage that is borne by the unprepared.
Information and Cyber Insecurity has emerged as the Number 1 Risk for two consecutive years. Threat mapping measured Data Theft, Phishing and Hacktivism as the most prevalent threat.
Numerous Industries such as Financial Services, Government/PSU, Infrastructure and Telecom have collectively ranked Information & Cyber Insecurity as the Number 1 risk, illustrating the urgency for upgrading existing resources, both human capital as well as technology, to meet global compliance regulations.
Natural Hazards ranks as the second biggest risk to business operations in the India Risk Survey 2018. As per the findings of India Risk Survey 2018, floods pose the biggest threat to business operations. Inadequate infrastructure and maintenance by concerned bodies remain a primary factor that would allow natural hazards to pose serious risks to business operations. Further, a lack of preparedness and early warning systems have contributed to making Natural Hazards a risk that should be considered with more seriousness.
Political & Governance Instability rose to fifth rank this year with Policy Changes as the most prevalent threat impacting business operations, indicative of rising uncertainty among the global investor community. In today’s time, policy makers and business leaders can truly fulfil their role by timely anticipation of risks.
‘Strikes, Closures and Unrests’ ranks in the sixth position in the India Risk Survey 2018. The survey finds that growing political instability has become a major cause for concern, which has resulted in violent clashes and unrests in several parts of the country. The implications posed by risks from Strikes, Closures, and Unrest have direct implications for financial losses incurred by businesses, and a slow-down in business development.
Further, the country’s reputation perceived as inhospitable for business to flourish also affects future prospects. Instability, threatening business operations, directly impacts the market by affecting investor confidence and an increase in the risk premium assigned to securities in the country. The Government continues to take steps to rectify situations by addressing worker disgruntlement through legal changes and reforms.
According to the Survey, Crime ranks in the seventh position. India is ranked 136 out of 163 countries in the Global Peace Index, 2018, moving up just one position as compared to a jump of 6 positions in 2017. It is noted that the risk of crime in India has seen a steady decline over the last few years. The Government and police have made use of social media and digital platforms to reach more people and ensure more efficient policing. Various police departments have taken to using social media as a tool for crime prevention.
The Survey finds that threats to security and safety posed by violent crimes, such as, kidnapping and murder, are the biggest risk to company personnel.
‘Corruption, Bribery & Corporate Fraud’ continues to be one of the biggest risks faced by businesses in India, and ranks eighth in the India Risk Survey 2018. The perception of the risk has fallen, with India incorporating economic reforms to ensure that global investors are appeased. According to the World Bank’s Doing Business 2018 rankings, India has jumped from 130 in 2017 to 100 in 2018 out of 189.
‘Corruption, Bribery & Corporate Fraud’ as a risk, however, continues to hinder growth and cause disruptions in progress. It dissuades potential investors and diminishes the growth opportunities of existing players. Investors have called for better corporate governance and more stringent regulation of business corporations.