Emerging Threats to Individuals, Businesses, and States
- Imagine waking up one morning to find your bank account drained, your personal data exposed, or your business operations halted by a cyberattack.
- These scenarios highlight the emerging threats faced by individuals, businesses, and states in our technologically interconnected world.
- With the growing interdependence of places, stakeholders operating at different scales (e.g. individuals, businesses, and states) face variety of risks caused by physical (environmental), economic, (geo)political, biological (health-related), and moral (ethical) hazards.
- From cybersecurity risks to global supply chain vulnerabilities, understanding these threats is essential for navigating the modern landscape.
Personal and Business Risks
Hacking and Cybersecurity Threats
1. Data Breaches
- Data breaches is the act of exploiting vulnerabilities in computer systems or networks to gain unauthorized access to data, functionality, or control.
- Data breaches occur when unauthorized individuals access sensitive information, such as financial records or personal identifiers
- These breaches can lead to identity theft, financial loss, and reputational damage.
- Equifax (2017): Exposed the personal information of over 147 million people, including Social Security numbers and credit data.
- Marriott International (2018): Affected around 500 million guests, revealing details like passport numbers, payment information, and personal data.
- Facebook (2019): Exposed data of over 530 million users, including phone numbers and personal information, due to a vulnerability in their systems.
2. Ransomware Attacks
- Ransomware is a type of malicious software that encrypts a victim's data, demanding payment for its release.
- These attacks can paralyze critical systems, from hospitals to government agencies.
The WannaCry attack in 2017 affected over 200,000 systems in 150 countries, including the UK's National Health Service.
3. Identity Theft
- Identity theft involves stealing personal information to commit fraud.
- This crime is particularly challenging because the perpetrator and victim can be geographically distant, complicating law enforcement efforts.
Certain populations, such as university students and military personnel, are at higher risk due to shared networks and insufficient protection.
TipRegularly update passwords and enable two-factor authentication to reduce the risk of hacking.
Surveillance Concerns
1. Government Surveillance
- State surveillance has expanded with advancements in technology, raising concerns about privacy and freedom.
- Governments can now monitor communications, track online activity, use CCTV cameras and facial recognition systems, as well as intercept data through fiber optic cables.
- During the Arab Spring, governments in Egypt and Libya reportedly used surveillance to suppress dissent.
- The most known example of digital surveillance state is China. It involves extensive monitoring of citizens using advanced technologies like facial recognition, AI, and big data analytics. It integrates national databases for tracking social behavior, maintains internet censorship through the Great Firewall, and utilizes platforms like the social credit system to regulate and influence citizen conduct.
2. Corporate Data Collection
- Corporations also collect vast amounts of personal data for targeted advertising and market analysis.
- While this can enhance consumer experiences, it raises questions about consent and data security.
To what extent should governments balance national security with individual privacy? How do cultural perspectives shape this debate?
TipDon't assume that all data collection is harmless. Always review privacy settings and permissions on your devices.
Global Supply Chain Vulnerabilities
- Global supply chains are the backbone of modern economies, but they are increasingly exposed to a range of risks.
Political Instability
1. Trade Wars
- Trade wars can disrupt the flow of goods and services, leading to shortages and increased costs.
- These measures often have ripple effects, impacting businesses and consumers worldwide.
- The US-China trade war began in 2018 and led to tariffs on hundreds of billions of dollars' worth of goods, affecting industries from electronics to agriculture.
- It was repeated to a far larger extent in 2025.
2. Conflict and Resource Nationalism
- Political instability in key regions can disrupt supply chains, especially for critical resources like oil or rare minerals.
- Resource nationalism, where governments take control of natural resources, adds further uncertainty.
The Arab Spring protests disrupted supply chains in the Middle East and North Africa, affecting global oil markets.
3. Sanctions
- Sanctions are restrictive measures imposed by countries or international organizations to influence a nation's behavior, in response to political or economic disputes showing how these spheres interplay.
- Sanctions can include trade barriers, asset freezes, travel bans, or restrictions on financial transactions, aiming to pressure governments or entities to comply with specific international norms or policies.
- Participation in global interactions of countries on which sanctions are imposed is limited.
- The West imposed sanctions on Russia after 2014 annexation of Crimea and severely enhanced them after 2022 full-scale invasion on Ukraine.
- As an effect there have been disruptions in energy exports from Russia, high-tech imports to Russia (e.g. in automotive industry), as well as adjustments to trade and travel routes (avoiding Russian airspace by most of the airlines).
How might political instability in one region affect global supply chains? Can you think of a recent example?
Economic Disruptions
1. Pandemics
- The COVID-19 pandemic exposed the fragility of global supply chains, causing delays and shortages in essential goods.
- Lockdowns and travel restrictions further compounded these challenges.
The pandemic led to a global shortage of semiconductors, affecting variety of industries from automotive to consumer electronics.
2. Currency Fluctuations
- Sudden changes in currency values can disrupt trade by altering the cost of imports and exports.
- This volatility creates uncertainty for businesses and consumers alike.
Economic disruptions often intersect with other factors, such as political instability or natural disasters, amplifying their impact.
AnalogyThink of a global supply chain as a relay race. If one runner (or link) stumbles, the entire team (or chain) is affected, causing delays and disruptions.
Physical Disruptions
1. Natural Disasters
- Natural disasters such as earthquakes, volcanic eruptions, floods, and hurricanes can severely disrupt supply chains by damaging infrastructure and halting production.
- The 2011 tsunami in Japan led to a significant reduction in car production in Japan and in the US due to disruptions in the supply of parts (e.g. paint pigment for car bodies).
- This natural disaster also brought serious disruptions to global supply chains in high-tech industries (flat-screen TV, LCD, cameras and smartphones manufacturing) due to critical role of the Japanese producers.
2. Extreme Weather Events
- Climate change is increasing the frequency and severity of extreme weather events, further threatening global supply chains.
- These events can include hurricanes and floods taking place in the most vulnerable coastal locations which at the same time are vital for manufacturing and global trade.
- Floods in Bangladesh regularly disrupt the textile industry, affecting global clothing retailers.
- 2011 floods in Thailand disrupted global supply of car and electronic parts (mostly computer hard drives).
Don't overlook the interconnectedness of supply chains. A disruption in one region can have far-reaching consequences.
Addressing Emerging Threats
- Mitigating these threats requires proactive strategies at multiple levels.
Cybersecurity Measures
- Individuals: Use strong passwords, enable two-factor authentication, and regularly update software.
- Businesses: Invest in cybersecurity infrastructure, conduct regular audits, and train employees to recognize threats.
- Governments: Develop robust cybersecurity policies and collaborate internationally to combat cybercrime.
Encryption is a powerful tool for protecting sensitive data. Ensure your devices and communications are encrypted whenever possible.
Strengthening Supply Chains
- Diversification: Avoiding reliance on a single supplier or region by diversifying sources.
- Reshoring: Bringing back manufacturing and production activities that were previously offshored to other countries to enhance supply chain resilience.
- Resilience Planning: Developing contingency plans for disruptions, such as stockpiling critical materials or establishing alternative routes.
- Collaboration: Fostering partnerships between governments, businesses, and international organizations to address shared risks.
Reflection and Broader Implications
- More interconnected and technologically advanced world creates new risks for individuals, businesses, and governments.
- The threats of cybersecurity risks and supply chain vulnerabilities are complex and interconnected.
- By understanding these challenges and adopting proactive strategies, individuals, businesses, and states can better navigate the uncertainties of the modern world.
- Except for political, economic, and physical threats, there are also moral and ethical hazards related to problems like negative environmental externalities, child labor and contemporary slavery, support for non-democratic governments, as well as data privacy or surveillance.
- As you reflect on these concepts, consider the following questions:
- How do ethical considerations shape decisions about risk management?
- Can you draw parallels between these issues and other global challenges, such as climate change or public health?
