The Internet of Things (IoT) is connecting the “virtual” world to physical reality: not only the devices we would normally associate with accessing the Internet, but also machines, vehicles, and industrial plants of all kinds are now equipped with sensors and actuators, allowing them to collect, process and exchange data across digital networks and to interact with the real World via cyber-physical connections.
With smart connectivity, all this combines to create a fascinating ecosystem of data. But how do companies generate added value from this apparent flood of data? And what are the main risks we might face?
In this paper, the main definitions, characteristics, and different types of IoT are presented alongside a brief market analysis. In addition, regulations in specific geographic areas and sectors are discussed. Specific chapters outline key risk areas, which go beyond just cybersecurity risk and include strategic, reputational and accumulation risks related to the connected devices.
This paper confirms that the rise of the IoT presents new challenges for risk managers, who need to adapt their risk management approaches to understand and monitor the IoT risks across the business.