Fatihah Ramzi, DigitalCFO Asia | 29 November 2022
The three most significant problems that organizations have encountered in the year.
The difficulties faced by business owners never cease. To keep their businesses afloat and relevant to the situation of the market, they are always forced to come up with new strategies. The difficulties facing entrepreneurs in 2022 are considerably larger. Despite the pandemic’s slow economic recovery, it will take some time for businesses to fully bounce back. Numerous organizations continue to face challenges, including those related to recruitment, finances, and digital transformation.
However, business entrepreneurs have always been renowned for their tenacity and ability to consistently find solutions to any problems that arise. This is true whether we’re discussing businesses that are just getting started or ones that have been operating for a while. But what are some of the most urgent issues that entrepreneurs will deal with in 2022? In this post, we’ll take a look at the three most significant problems that organizations have encountered in the year.
1. Fairness & Inclusion
Many businesses are being forced to increase their commitments to corporate social responsibility with an emphasis on equality and justice for underserved communities as a result of pressure from activist investors, the general public, and their own employees. Over the past two years, fairness issues have gone beyond DEI.
Through the use of regulations intended to eliminate unfair advantages in personnel decisions, businesses have historically attempted to promote fairness. To prevent hiring managers from judging candidates based on their supposed gender or race, recruiters, for instance, remove the prospects’ photographs from their resumes. To prevent employees from being paid more or less than their coworkers at the same level, a business may also establish stringent pay bands.
These regulations can reduce unfairness, but they are insufficient to produce a very fair working environment. And when employers paid more attention to where workers felt injustice occurred, they discovered that hiring, promotion, and pay accounted for only 25% of this view. The majority of these encounters take place during regular work hours. Organizations require new ideas, not simply rules, to handle these increasingly ubiquitous fairness concerns. Instead of eliminating unjust advantages, they ought to look for ways to lessen disadvantages so that most or all of the workforce benefits.
2. Climate & Sustainability
Simply put, many species won’t live through the 21st century if businesses do not behave responsibly as members of the global community. According to Environmental Sustainability, the rate of species extinction due to human activity now is hundreds of times higher than it was originally.
Given that corporations account for the majority of global emissions, sustainability has thus become a crucial problem for them. This is why companies will inevitably foster a dying planet if they do not contribute to the solution. The “Race to Zero” campaign, which aims to take strict and urgent action to halve global emissions by 2030 and deliver a healthier, fairer zero carbon world in time, has forced many businesses to make organizational changes in 2022 to implement effective sustainability strategy and initiatives.
In the long term, investors, clients, and consumers may be less eager to support businesses that do not make sustainable decisions in their processes. Sustainability must be prioritized if the company hopes to stay relevant in the long run.
3. Fraud & Financial Crimes
As the globe recovered from COVID-19, criminals adapted and took advantage of possibilities. In 2022, supply chains are still disrupted, fraud is rising, ransomware assaults are commonplace, and digital payment systems are still under constant attack. The year also saw an increase in the amount of data breaches.
Among the most frequent outside offenders are hacker groups and organized crime networks. In the past two years, their activity significantly increased. With objectives, rewards, and bonus schemes, organized crime organizations are evolving to become more specialized and professional. Additionally, malicious actors are banding together, which raises the frequency and level of sophistication of attacks. Specialists in data breach, false ID creation, attack methods, and other complex areas may connect, coordinate, and transact inside a developing criminal economy thanks to chat rooms, the dark web, and cryptocurrency.
The use of new technology by businesses is widespread. Digital platforms like social media, services (like ridesharing or accommodation), and e-commerce provide hazards for fraud and economic crime that most businesses are only now starting to recognize. Four out of five businesses that experienced fraud in the past two years have a connection to the digital platforms they use. Undoubtedly, the pandemic increased vulnerability as organizations expedited the shift to digital operations; as a result, 2022 was a year in which many firms placed a high priority on cyber security activities.
In 2023, it is likely that these issues will still persist, but there will also be a new set of priorities. This is a result of the ongoing worldwide economic situation. The effects of high inflation and geopolitical concerns would be further issues of focus in 2023. In the face of unfavorable uncertainty, it is preferable for firms to maintain their flexibility and adaptability. Businesses should make continual infrastructure investments as 2022 draws to a close.