Strategic risk management in outsourced business processes: Navigating geopolitical and cybersecurity challenges
University of edinburgh MA Social Policy and Economics, United Kingdom.
Research Article
Magna Scientia Advanced Research and Reviews, 2024, 12(02), 133–143
Article DOI: 10.30574/msarr.2024.12.2.0194
Publication history:
Received on 18 October 2024; revised on 23 November 2024; accepted on 25 November 2024
Abstract:
Outsourcing has become increasingly important for organizations around the world because the practice offers optimization opportunities for the organizations. However, the increase in the magnitude of outsourcing has brought new complex hazards that need organizations to be aware and ready to tackle. The hazards include operational disruptions due to data breaches and harm to brands. This research was aimed at comprehending the strategic risk management within the realm of outsourced processes with the intention of geopolitical and cybersecurity obstacles. The study sought to establish a framework that will help organizations to improve their risk management practices within the context of outsourcing. The study employed qualitative and quantitative methods to examine the operational, financial, geopolitical, and cybersecurity hazards of outsourcing. The qualitative component included in-depth interviews with key stakeholders in outsourcing and the quantitative component included surveys. The thematic analysis and inferential statistics indicated a strong association between geopolitical factors, cybersecurity threats, and strategic risk management. The recommends an inclusion of the geopolitical risk assessment as an integral part of strategic planning in the outsourcing practice. Also, the study recommends enhancement of cybersecurity processes to avert financial and operational risk.
Keywords:
Risk Management; Supply Chain; Cybersecurity Threats; strategic risk management; geopolitical factors
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Copyright © 2024 Author(s) retain the copyright of this article. This article is published under the terms of the Creative Commons Attribution Liscense 4.0