The unstable international situation and the strict demands regarding compliance They further complicate the risk map for any company. In this situation, when acquiring a company, or taking a stake in its capital, extreme caution must be exercised and not assume that internal controls are working correctly without first checking it.
Until now, it was common to perform due diligence -the audits that any company must undergo to obtain investors or close a sale or merger-, which focused on financial, labor, tax and even reputational issues. It involves collecting a series of quantitative data that reflects the internal situation of the company, its position with respect to its competitors and with respect to regulators. In these times of change, it is also important to control and avoid managerial leaks due to the loss of talent that this entails, or even due to the abandonment of relevant clients that can detract from the company’s future.
But the advance of technological developments has introduced new risks for companies, less noticeable at first glance. These are the problems derived from the use of applications, developments or platforms that most employees use daily and are where key information for the viability of the firm can escape. The use of artificial intelligence is the fashionable paradigm, but it is not the only door through which companies can lose value.
Checking this technological escape route is not only necessary when you are in a buying or selling process, but it should be analyzed in depth in the day-to-day life of the company. It is common to consider that the routine control systems implemented are sufficient, but experience shows us that this is not the case. Cyberattacks are the most talked about problems, perhaps because news about this type of issue is published almost daily. However, without downplaying the importance of these cyberattacks, The technological complexity and digitization of processes goes much further and has increased the need to protect confidential information so it is necessary to take new measures. Ten years ago, the potential risks were more limited and the analyzes to see the problems inherent to the business were less in-depth. Today it is key to be sophisticated in the control of these technological means because they can cause relevant problems.
The dismissal of managers or employees of any rank is a clear risk in the dissemination of confidential information or the theft of sensitive data for the company. To avoid this, the access that personnel have to certain information systems must be controlled, especially when the company experiences critical situations such as a share change. But, sometimes, The problems do not arise only due to the bad intentions of users, but also due to negligence or attempts to avoid cumbersome control systems that slow down commercial work. A classic example is when file sharing platforms are developed parallel to those found in secure environments to show the benefits of products to customers when working outside the company. This type of leak can also occur with teleworking, that is, in situations where the intention is not to harm the firm, but unwanted data leaks may occur accidentally or inadvertently.
The aforementioned issue of generative artificial intelligence is a good example of an advance that can help improve a firm’s efficiency, but also exposes it to new risks. As we mentioned before, misuse of this tool or lack of controls creates problems. It is necessary for businessmen and managers, at the highest level, to be aware that to enjoy the benefits of AI it is necessary to invest in tools and dedication of teams, that is, allocating resources. Besides, The AI ​​that each company uses must be educated to avoid bias, so that it maintains impartiality, ethical and responsible criteria, including ESG (environmental, social and corporate governance factors) and that requires important prior work.
This situation will increase exposure to new technological developments and new regulations for companies. According to the study The General Counsel Report, prepared by FTI Consulting and Relativity, based on interviews with general counsel from large companies in different sectors around the world, the challenges posed by emerging data from cloud tools, Collaboration and chat applications have increased, and 62% of respondents reported experiencing new issues in litigation, investigations, data protection, governance and compliance, up almost 20% from the previous year.
The path to mitigating possible risks involves investment, both internal and external, to have the profiles and knowledge necessary to face these challenges. It is something that reduces future problems and, therefore, costs and annoyances. Managers, staff, and suppliers must be aligned with the protection of the company and avoid the leaks that technology and digitalization, as a double-edged sword, can entail.
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