MANAGING SECURITY RISKS IN INTERNATIONAL BUSINESS

Abstract

This paper examines the existing theory of risk management in international business, as well as the effects that the globalization and digital transformation have on the development of contemporary security risks. Besides the analysis of the key elements of globalization and digital transformation, this paper points out that the imperative for success in international business is a systematic approach to security risks, and the new categorization of risks in international business. While the pandemic has provided an impetus for the rapid and widespread adoption of digital technologies, it has also created new opportunities for hostile threat actors leading to an increase in cybercrime and thus reinforced the demand for robust and responsive security measures. The paper argues that more now than ever, there is a burning need to address the problem of security risks properly. Initial efforts to address these risks have sought to include the aforementioned security risks in existing risk mitigation practices and to address them through existing business risk processes, but it has become evident that success risk mitigation requires new and adapted approach. The authors present the review of existing theory of security analysis and propose the new categorization of risks in international business to include security risks. Security risks include, but are not limited to threats such as loss of data and intellectual property, fraud, disruption of business processes, and the possible endangerment of the physical security of both employees and assets.