Now, in comparison to the scope and nature of other breaches such as Equifax and Yahoo, the Uber hack may appear to pale in comparison. However, this company represents countless organizations who have perpetrated repeated failures in risk management.
Other examples include Wells Fargo and Chipotle. My first Wells Fargo cross-selling blog foreshadowed their July 2017 data breach and auto loan scandal. Chipotle keeps poisoning their customers with food borne illnesses, and while two CEOs have stepped down, the food borne illnesses keep occurring.
Wells Fargo is a bank, Chipotle is a restaurant, and Uber is a ride-hailing company; yet, these seemingly unrelated companies have something in common. They have failed to identify the root cause of their risk, and so have fallen victim to multiple, preventable, failures in risk management. To this we say, time for risk management rehab.
Repeated scandals due to negligence in risk management will continue to produce additional scandals in other business areas that on the surface look different, but are caused by the same failed risk management processes and systems, until they’re addressed.
We can take a look into the Uber hack along with the other missteps Uber has perpetrated and see that there is a common thread between them that not only includes the absence of healthy risk practices, but a lack of senior leadership that recognizes the true value of these practices.