topic 6

• Cybercrime


  Criminal activity using the Internet, and it includes stealing an organization's intellectual property, seizing online bank accounts, creating and distributing computer viruses, posting confidential material on the Internet, and disrupting computing services
• Cybercrime is increasing and it costs countries millions of dollars every year
• Average cost of cybercrime - 7.7 million/year
• As more areas of people's lives become computerised

  The risk of cybercrime increases
• Hacking

  • Major threat to individuals and organisation
• Oct 2016 - customer of Dyn (Twitter, PayPal, CNN) - hackers disabled internet
• Identity theft

  Increasing incidents of identity theft since 2001 - +1M
• Rise in future - increase in the number of databases with insufficient protection
• More at risk population


  • students
  • military personnel
  • medical patients
  • deceased
• After a natural hazard - Hurricane Katrin 2005 - chaotic period increased opportunities for theft
• Surveillance

  Undermines citizens ability to enjoy a private life, freely express themselves and enjoy their other fundamental human rights
• UN forced to update their understanding of privacy in the face of the Internet and new technologies
• Modern surveillance technologies enable states to intrude into individuals' private lives
• The private sector collects more and more data that contain information about people's daily lives
• Legislation has not kept pace with the changes in technology, creating gaps that deprive individuals of protection and allow for the increased use of surveillance
• The greatest dangers to surveillance & loss of personal freedom is the global industry that has developed around the sale of surveillance technologies to governments
• Supply risks


  The ability to meet the demand for goods in terms of quantity, quality, and timing
• Demand risks


  Change in demand, possibly as a result of currency fluctuations or political relations
• Operation risks


  Transport infrastructure responsible for delivering the goods
• Factors that influence supply-chain risks

  • Environmental: natural disasters, extreme weather events & epidemics
  • Political: protectionism, trade restrictions, conflict
  • Economic: currency fluctuations, trade restrictions imposed by governments
  • Technological: disruption to transport networks and ICT networks
• 2011 Japan Tsunami - 150,000 fewer cars produced in USA
• Thailand 2011 flood - shortage hard drive - 1,000 factories close - economic loss $20B
• Middle East & Nort Africa - post Arabic Spring
• Ukraine - war sanctions to Russia - Gas to Europe
• Rising interest rate cause Havoc for firms that required cheap goods
• Debt crisis in Europe - provided economic uncertainty to risk managers
• Repatriation


  Movement of profits made in a business or investment in a foreign country back to the country of origin
• Done to protect against expropriation or to take advantage of currency fluctuations
• Important factor in determining whether foreign direct investment (FDI) in other country is profitable for firm
• China is the hub today - slowly liberalised its economy and laws to suit FDI needs - legal to repatriate 90% of profits - provide that certain norms are fulfilled - setting up local offices
• Companies do so to get ride of home country high corporation tax - significant savings
• LIC's could be losing $124B each year by tax avoidance of TNC's and the super rich
• ABF Britain's food and drink manufacturer - subsidised by Zambia Sugar - $123M profit - paid less than 0.5%
• Campaign claims that tackling tax avoidance could end world hunger
• Tax avoidance by the wealthy

  • Live in countries with lower rates of taxes - Monaco, Cyprus, Caiman Islands
  • Pay someone to sort out their finance
  • Arrange to pay a spouse a wage below the maximum threshold - spread income amongst 2 people
  • Receive small salary rest in dividends
  • Invest in small firms and businesses
  • Donate assets to charity - claim tax relief
• Drones


  Operated remotely, used for surveillance in natural & man-made disaster, monitor environmental conditions, provide farmers with information
• Growth of drone industry - $13B
• Drones create jobs 30,000 manufacturing, 70,000 technical jobs
• Drones desensitize armed personnel - fatalities
• Drones invasion of personal privacy