In our first post on the Significance of Operational Risk Management in the GCC [LINK] we looked at why Operational Risk Management is important.
In this posting we're going to explore specific trends that are impacting organisations in 2024 across the GCC.
Operational Risk in the GCC Region
1 Cyber Security
The GCC region is witnessing an increase in Cyber-Attacks, with a focus on critical infrastructure, financial institutions, and government entities.
Cyber Risk Growth | Statista
According to industry experts, it is predicted that cyber incidents will continue to rise in 2024 and beyond. Organizations must develop a response to this emerging threat that may include creating a robust Network Security Program, giving employees the right kind of awareness and training, and establishing an incident response plan to mitigate cyber threats as they occur.
2 Disruptions in the Supply Chain
The GCC region is significantly dependent on global supply chains, making it susceptible to disruptions stemming from events such as natural disasters, geopolitical tension, and economic outlook.
Inflation Expectation | World Economic Forum
As reliance on international trade continues to grow for the gulf region, organizations would do well to thoroughly evaluate and tackle operational risks linked to their supply chains but also to assess economic challenges outside the region so that supply chain diversification can be explored.
3 Adaptation to Regulatory Shifts
Finally, the regulatory landscape in the GCC region is in a constant state of flux, necessitating organizations to stay abreast of evolving government regulations and policies. Businesses should remain informed about regulatory changes that could impact their operations, compliance obligations, and reporting requirements.
Proactive measures such as vigilant monitoring of regulatory developments, collaboration with industry associations, and the establishment of robust compliance frameworks are vital components for effectively managing operational risks stemming from regulatory shifts.
The Causal Capital team has recently extended your masterclasses to capture these emerging risks in our training case studies, and we're fully aware of the challenges the GCC region faces from cyber risk, supply chains dislocation and new regulation. To mitigate these risks, organizations should prioritize measures and develop models to evaluate and tackle these risks.
Interested in a DEEP DIVE into the world of Risk Management?