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Volume 2, Issue 1

As organizations continue to evolve their risk governance practices, focused and relevant information about emerging risks is at a premium. The objective of Protiviti’s PreView newsletter is to provide an input for these efforts as compa-nies focus on risks that are developing in the market. Many of these risks are posed by the convergence of data avail-ability and analytics with the accelerating impact of technology, affecting virtually every business model in terms of fulfilling customers’ needs. This, coupled with shrinking wages and income, is becoming a powerful driver of consumer behavior in a collaborative, on-demand economy, particularly for millennials.

In this issue, we place the spotlight on economic and technological risks in parallel with generational shifts, to help companies anticipate the challenges that come with new opportunities. The topics include risks from an upward interest rate market, data breach vulnerabilities in the information age, reputational risk associated with social media interactions with consumers, and the economic implications of on-demand services. We continue our Shadow Banking series with a focus on crowdfunding.

Our framework for evaluation is rooted in the Global Risk Categories designed by the World Economic Forum. Throughout this series, we will continue to use these categories as a framework for classifying macro-level topics and the challenges they present.

In closing, we are very interested in your feedback. We plan to continue the conversation on emerging risks on our blog, “The Protiviti View” (blog.protiviti.com), and on our microsite (www.protiviti.com/emergingrisks). We welcome your input and comments.

Foreword

PreViewProtiviti’s View on Emerging Risks

Inside This Issue• Risks from an Upward Interest Rate Environment Page 2• Data Breaches: Vulnerability in an Information Age Page 4• Social Media Interactions with Consumers: Opportunity or Reputation Risk? Page 5• Shadow Banking Series, Part 2: Crowdfunding Page 7• Emerging Risk Spotlight: On-Demand Services Page 8• On the Radar Page 9• Where to Learn More Page 9• The Protiviti View – Continuing the Conversation on Our Blog Page 11• About Protiviti Page 11

Emerging Risks

Environmental

GeopoliticalSocietal

Technological

Economic

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Risks from an Upward Interest Rate Environment

Key ObservationsRecently, the Federal Reserve ended its quantitative easing stimulus program, which it began in 2008. This revision to monetary policy signals that an interest rate rise is inevitable. The American economy has not been in a rising interest rate environment for over 30 years. The considerable institutional wisdom of corporate and governmental decision makers in an upward rate environment will be retiring with the Baby Boomers’ generation. It remains to be seen if the current generation of decision makers will tap into the knowledge of their retiring elders. The market has been transformed by technological advances since the last rising rate environment, and even mild interest rate changes can lead to significant impacts if the new generation of decision makers lacks the knowledge to manage them well.

Source: Protiviti, based on the following sources: Consumer debt: www.federalreserve.gov/releases/g19/HIST/cc_hist_mh_levels.html, federal debt: www.whitehouse.gov/omb/budget/Historicals, FFR projections, federal funds rate: www.cbo.gov/publication/45684, effective FFR, annual frequency data: www.federalreserve.gov/releases/h15/data.htm.Note: Consumer debt data is not adjusted for inflation.

Key Industries Impacted: Financial Services, Industrial Products, Consumer Products & Services, Government

Consumer Debt and the Effective Federal Funds Rate

Federal Debt and the Effective Federal Funds Rate

ECONOMIC

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Key Considerations and Implications:• Federal deficits, which are projected to hit the lowest point in eight years in the final year of the Obama

presidency, will rise in real dollars as the interest rates increase. Furthermore, an increase in federal deficit brings the possibility of tax increases for individuals.

• Millennials, as a generation, are eager to own homes. According to Zillow’s 2015 Real Estate Market report, home value appreciation is expected to stabilize over the next five years as inventories increase and delinquencies and foreclosures fall. The rising interest rates, however, could severely impact the ability of millennials to afford a house purchase in the near future. This may cause a decline in the rate of homeownership among young first-time homebuyers, who would be the ones most severely affected by the increased interest rates. This decline can have a longer-term ripple effect on more expensive homes and the housing market in general.

• Currently, approximately 31 percent of household debt balance – from credit cards, ARMs and home equity – is variable rate debt. This amounts to nearly US$3.7 trillion, and even a 0.25 percent increase in the base rate will raise the debt by a significant amount, with potential implications across all industries.

• Per the Consumer Financial Protection Bureau, student loans are at an all-time high, with federal loans surpassing US$1 trillion, and any raised interest rate will significantly impact the portion that is tied to either the interest rate environment or the government’s borrowing cost. A 0.8 percent increase in interest rates on federal student loans increases the monthly payment amount on a 10-year loan by 22 percent. This could have huge ramifications for education as a whole, especially combined with the continued rise in the cost of college, which has increased 486 percent, adjusted for inflation, since 1981 (for attending a 4-year institution).

• An interest rate rise will cause a systemic increase in the borrowing costs on lines of credit. This cost increase will, in some measure, be passed down to consumers, who will see an overall increase in costs for retail goods and less disposable income for discretionary purchases, including travel and leisure. The rise in borrowing costs may also incentivize companies to seek alternative funding from foreign or shadow banking entities to meet their needs at a lower rate. Millennials, having come of age in such a nontraditional funding environment, may very well carry this trend into the future as well.

• Due to banks’ regulated higher rate of liquidity under all scenarios, they may not be able to react as nimbly to less risky assets and might turn down deposits to offset some of the liquidity requirements. Furthermore, to offset the short-term rate impacts, they may need to lend at shorter durations or at higher rates.

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While the exposure of sensitive information through a data breach has been a continually evolving risk for many organizations, the frequency, scope and severity of these cybersecurity breaches have increased. In 2014, record highs in data breach activity accounted for over 1 billion records exposed. Several widely publicized data breaches at industry-leading corporations have shed light on the increased capabilities of hackers to obtain and exploit a variety of sensitive information.

Data Breaches: Vulnerability in an Information Age

Key Industries Impacted: Consumer Products & Services, Financial Services, Technology, Media & Communications, Healthcare & Life Sciences, Government

Key Considerations and Implications:• With increased visibility due to growing media attention, data breaches can result in substantial damage to brand

reputation. Combined with the costs of required remediation efforts, impaired customer relationships, lawsuits and regulatory fines, the long-term financial implications of a cybersecurity breach can be significant.

• As the bottom-line impacts become better understood, an increasing number of companies may adopt “cyber liability” insurance policies to mitigate the risk of a potential large-scale breach. Spending on cyber liability insurance was about US$2 billion in 2014, almost double the amount spent in 2013.

• Cybersecurity breaches will likely continue to garner increased regulatory attention and oversight, including penalties designed to ensure sound cyber risk management practices. The Securities and Exchange Commission requires disclosure of cybersecurity risks in corporate filings and is considering additional measures to compel organizations to disclose more information about cybersecurity vulnerabilities.

• In an effort to pool cybersecurity intelligence, many organizations have begun to collaborate and share information regarding potential new threats and specific vulnerabilities within their networks. Soltra, a partnership of more than 5,500 members, including some of the world’s largest banks, collects and disseminates certain threat information to its members, such as suspicious IP addresses and specific forms of new malware.

ECONOMIC & TECHNOLOGICAL

2013 2014 2015

Evernote50 million

eBay145 million

Q1

Anthem80 million

Adobe152 million

Q1 Q4Q2 Q3Q1 Q4Q2 Q3

Home Depot109 millionTarget

110 million

Court Ventures200 million

Major Data Breach Incidents – Records Exposed (2013 – Current)

Spotlight: Healthcare SectorHealthcare organizations continue to be primary targets of cyber criminals. In 2014, these organizations accounted for about a quarter of all reported data breaches, the highest percentage of any sector.

The shift towards electronic medical records by a majority of healthcare providers has substantially expanded the amount of sensitive information potentially at risk through cybersecurity breaches.

There is an increasing demand for protected health information on the black market and this will likely lead to even more cyber intrusions in the coming years. Patient medical records, often exploited for medical identity theft, fraudulent insurance claims, expensive medical equipment and drug prescriptions, can be more valuable to cyber criminals than credit or debit card numbers which can be cancelled easily. In 2013, complete health insurance credentials sold for US$20 apiece, approximately 20 times more than the value of a U.S. credit card number with a security code.

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Social media and technology pervade daily life and have altered the means by which individuals and companies interact with one another. Companies now proactively provide relevant content for their followers, and social media users are increasingly reaching out to their service providers to learn more about products and services and to provide comments, questions and complaints.

As companies, both small and large, modify their approach to managing consumer relations via social media, they must consider the effect their engagement with existing and potential customers has on the company’s reputation. Proactively identifying and measuring the risks that may impact reputation will become increasingly critical, as will be decisive action to determine when and how to respond to a social media situation. In social media, reputation risk is typically created when expectations are not managed appropriately, and is compounded due to a social media situation’s ability to go viral.

Social Media Interactions with Consumers: Opportunity or Reputation Risk?

ECONOMIC, TECHNOLOGICAL &

SOCIETAL

Key Industries Impacted: Consumer Products & Services, Financial Services, Technology, Media & Communications

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2.44The number of users has increasedby 102 percent from 2010 to 2015and is expected to rise by another24 pecent by 2018.

* Projected NumbersSource: Statista, www.statista.com/statistics/278414/number-of-worldwide-social-network-users/.

Consumers expect brands to have a social media presence on 3 to 4 different platforms, with the top four platforms favored by users being Facebook, Instagram, YouTube and Pinterest. The number of social network users worldwide grew by 102 percent from 2010 to 2015, and is expected to reach 2.44 billion users by 2018. As the number of consumers on social media grows, companies must also proactively evaluate the need for a social media presence, as well as the potential risks that come with interacting with their consumers online.

Number of Social Media Network Users Worldwide (2011-2018*)

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Key Considerations and Implications:• Social media has given customers a round-the-clock public forum to voice comments and complaints. Thirty-two

percent of customers who contact a company via social media for customer support expect a response within 30 minutes, 42 percent expect a response within 60 minutes, and 57 percent expect the same response times on nights and weekends. While social media gives firms the opportunity to assist customers around the clock, it also presents a reputation risk if they cannot meet consumers’ response expectations.

• The inclusion of social media in customer care strategies has added several potential customer service issues. For example, when companies receive complaints via Twitter or Facebook posts, the companies commonly post repetitive or scripted answers that encourage the customer to take additional measures to solve the problem (prompted by a perceived lack of measures by the company to fix the issue). Additional risk is posed when customers receive no responses because they may have directed their tweets to incorrect or fake accounts. There is also the possibility of companies’ legitimate social media accounts getting hacked and unauthorized posts being published, or of customers being contacted by the hackers. The higher number of followers a company acquires, the bigger the impact of a negative customer service issue on the company’s reputation.

• The social media-enabled public conversation between companies and their customers can spill easily into major news cycles, causing a potential reputational risk. Fifty percent of journalists state they use social media accounts as their main source of information, and only 20 percent of journalists state that they always check their facts through other sources before publishing an article. Due to this, social media has become a unique public relations channel for companies, and must be managed carefully to avoid the risk of negative interactions between a company and its customers spinning out of control.

• Some companies have added processes to monitor their social media interactions closely. These processes can also be utilized to identify operational risks and other issues. Companies’ interactions with customers and mentions on social media sites can be captured and the data analyzed to identify trends in what makes customers happy or upset. While participating in social media clearly poses reputational risks, it can also be an opportunity for companies to improve company operations and customer service.

Spotlight: Financial Services SectorSimilar to other industries, companies within the financial services industry are increasingly interacting with their customers in the social media space. In 2014, the total number of Facebook likes, Twitter followers, and YouTube views for the top four largest U.S. banks grew each consecutive quarter. In 2014, the number of Facebook likes increased by 5 percent, Twitter followers increased by 37 percent and YouTube views increased by 51 percent.

• Shifting consumer demands have resulted in an increasing number of financial institutions expanding their interactions with customers into previously unexplored areas, including using direct messages to respond to balance inquiries, transfer money and begin loan applications.

• The industry is recognizing the risks posed by social media. The Federal Financial Institutions Examination Council issued “Social Media: Consumer Compliance Risk Management Guidance” in December 2013, offering guidance on how financial service companies should address these risks. This document is becoming the standard for developing social media risk management programs across the industry and may be applied more broadly to other industries as organizations and their social interactions evolve.

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Crowdfunding became a viable option during the 2008 recession as a nontraditional way of seeking funds for a project or venture, typically by procuring small amounts of money from a large number of people through the Internet. It’s a technology-enabled platform that is, in essence, a subcategory of shadow banking and a part of the collaborative or sharing economy. As crowdfunding grows in acceptance among the public, it faces new challenges from supervisory bodies working on finding ways to regulate this source of funding, and from financial institutions looking for ways to address the long-term competitive challenges it poses.

Applications of CrowdfundingReward – Allows a project creator to seek funding in exchange for a reward that is promised to be delivered after funding goal has been met. Example: Kickstarter

Donation – This form of crowdfunding offers nothing in return for the contributor but the satisfaction of helping the project creator meet his or her goal. Example: PigIt

Equity – Allows private business startups to offer equity in their business in exchange for funding. Example: EquityNet

Peer-to-Peer Lending – Allows many individuals to allocate funds that will be issued to borrowers who state their reasons for seeking funds. Example: Prosper

Key Industries Impacted: Financial Services, Government, Technology, Media & Communications

Key Considerations and Implications:• As of the end of 2014, crowdfunding has added at least 270,000 jobs and injected more than US$65 billion into

the global economy. Its diverse applications range from micro-financing of emerging businesses to educational funding, to funding for creative projects or medical procedures.

• As traditional banks face tighter restrictions on lending and the demand for credit grows, crowdfunding will likely continue to grow as a viable alternative. It is also likely to add to the complexities of the regulatory environment. Title 3 of the JOBS Act will allow small businesses to utilize online crowdfunding to sell equity in their business to the public, with a maximum ceiling of US$1 million – an indication that regulators are beginning to adapt to the crowdfunding segment.

• Crowdfunding is an emerging threat to banks; the less restrictive regulatory environment in which crowdfunding platforms currently operate gives them an advantage to be more nimble than traditional financial institutions.

• Crowdfunding is a great opportunity to streamline the funding/finance process for entrepreneurs and investors by eliminating the intermediary; however, with the removal of the intermediary comes the increased risk of uncertainty for both parties. The equity ceiling imposed by the JOBS Act could serve to mitigate this risk but may also have implications on the growth of companies utilizing equity-based crowdfunding platforms.

Shadow Banking Series, Part 2: Crowdfunding ECONOMIC,

TECHNOLOGICAL & SOCIETAL

In addition to the typical risks associated with investing, crowdfunding presents some additional risks.

Risks to Investee

• Inability to scale with growth or demand following a capital influx from crowdfunding endeavors due to poor project management

• Restrictions on growth from caps placed on investment amounts

• Property right infringement from introducing an idea to the market before rights are in place

Risks to Investor

• Greater risk, as most investment opportunities available through crowdfunding are less developed

• Loss of investment due to project failure• Risk of being defrauded due to a lack of regulatory

oversight on investees• Lack of recourse to recover invested funds

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Key Industries Impacted: Consumer Products & Services

Emerging Risk Spotlight: On-Demand Services

The on-demand economy is comprised of businesses that utilize a combination of technology and existing infrastructure to immediately satisfy consumer demands for goods and services. Significant advances in technology, coupled with evolving consumer preferences and social habits, have accelerated the growth of on-demand services and revolutionized the business-to-consumer business model. On-demand services promote the efficient use of resources, matching up those with limited time and disposable income with those who have available time and are seeking additional income. The flexibility of these services also creates more job opportunities for those with non-traditional schedules. Mobile technology enables these businesses to reach scale rapidly. By mid-2014, over US$4.8 billion in capital had been invested in on-demand companies, with US$2.2 billion invested in the preceding 12 months.

Key Considerations and Implications:• Shrinking wages and growing income disparity across the general population provide strong motivations to

supplement earnings with new sources of income, as well as procure goods and services at lower cost. When these forces are coupled with rising public concerns over environmental and community sustainability and the public’s realization that governments are not providing meaningful solutions to address those concerns, opportunities for growing a collaborative economy emerge in which people are proactive in seeking out low-cost alternatives.

• The on-demand economy capitalizes on consumer behavior trends towards convenience, efficiency and instant gratification, where consumers also value flexibility over security. There are now over 40 on-demand companies available in over 10 markets, such as food and grocery, home services, personal care, transportation and hospitality.

• On-demand service providers face legal risks related to worker classification. As many of these companies choose to classify workers as independent contractors for cost-savings purposes, the lack of benefits, minimum wage and overtime compensation has led to a debate and lawsuits.

• On-demand service providers face significant technology risks as their business typically relies on mobile platforms. Data glitches, service failures and information security breaches all pose risks to these companies and the consumers utilizing their services.

• Traditional companies that fail to adjust their business model to this paradigm shift in consumerism face the risk of losing market share to the fast-moving technology companies. Conversely, those that integrate the shift into their business models will minimize disruptive change risk while assuming additional regulatory, operational and reputational risks.

ECONOMIC, TECHNOLOGICAL &

SOCIETAL

Market SpotlightNew on-demand services like Instacart, Amazon Fresh and Google Express allow customers to order food and groceries online for same-day delivery. Instacart has seen 15 to 20 percent customer growth week over week after launching in new cities.

Handy connects customers with pre-approved self-employed cleaners and handymen, handling scheduling and payments. Shyp, an on-demand mailing service, raised US$50 million in a new round of investments, after being valued at more than US$250 million.

Medicast is a convenient alternative to doctor’s office visits, bringing one straight to your door in a couple of hours.

Uber and Lyft, big players in the on-demand services market, have revolutionized transportation in cities by providing cheaper alternatives to cabs via mobile technology. Uber was valued at US$41.2 billion at the end of 2014, 126 percent higher than its previous valuation six months earlier.

Airbnb, with over 800,000 listings across nearly 200 countries, has a geographical presence few, if any, hotel chains can match. Counting beds on offer, Airbnb is among the largest hoteliers in the world, and it was founded just 7 years ago.

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On the Radar

The following emerging global megatrends are identified in No Ordinary Disruption: The Four Global Forces Breaking All the Trends. See “Where to Learn More” section for additional information.

Economic activity shifting to emerging markets and cities within those markets – The world economy’s balance of power is shifting east and south rapidly. Nearly half of the global GDP growth between 2010 and 2025 will come from 440 cities in emerging markets – 95 percent of them small- and medium-sized cities that many may never have heard of.

Acceleration in the scope, scale and economic impact of technology – Always a significant force in overturning the status quo, the growth in processing power and technological connectivity has been exponential. In addition, there is the concurrent data revolution, which delivers unprecedented amounts of information to consumers and businesses and spawns new ways of analyzing data, doing business and fulfilling customers.

Changing demographics – The human race is aging as fertility falls. In 2013, about 60 percent of the world’s population lived in countries with fertility rates below those needed to replace each generation. The consequences of this trend could be staggering if left unabated.

An increasingly connected world through trade and movements in capital, people and information flows – The links made possible through technology have spurred a fresh, dynamic era of globalization, with its attendant opportunities and potential for unexpected volatility.

Upward Interest Rate EnvironmentU.S. Department of Education, National Center for Education Statistics. 2012. Digest of Education Statistics [Publication, Chapter 3]: http://nces.ed.gov/fastfacts/display.asp?id=76.

“Student Debt Swells, Federal Loans Now Top a Trillion,” by Rohit Chopra, Consumer Finance Protection Bureau, July 17, 2013: http://www.consumerfinance.gov/newsroom/student-debt-swells-federal-loans-now-top-a-trillion/.

“CBO’s Projection of Federal Interest Payments,” by Wendy Edelberg, Congressional Budget Office, Sept. 3, 2014: www.cbo.gov/publication/45684.

“Gap Year: Renters’ Housing Confidence Growing Faster Than Homeowners’,” by Aaron Terrazas, Zillow.com, March 12, 2015: www.zillow.com/research/housing-confidence-jan-2015-9097/.

“Interest Rates for Student Loans Just Went Up,” by Ann Carrns, New York Times, July 1, 2014: http://www.nytimes.com/2014/07/02/your-money/student-loans/interest-rates-for-student-loans-in-america-just-went-up.html.

Data Breaches“A Quick Guide to the Worst Corporate Hack Attacks,” by Keith Collins, Bloomberg, March 18, 2015: www.bloomberg.com/graphics/2014-data-breaches/.

“Data Breach at Anthem May Forecast a Trend,” by Reed Abelson and Julie Creswell, New York Times, Feb. 6, 2015: www.nytimes.com/2015/02/07/business/data-breach-at-anthem-may-lead-to-others.html?_r=0.

2014, Year of Mega Breaches & Identity Theft [Research Report], Gemalto, 2014: http://breachlevelindex.com/pdf/Breach-Level-Index-Annual-Report-2014.pdf.

“Spending on Cyberattack Insurance Soars as Hacks Become More Common,” by Paresh Dave and Javier Panzar, LA Times, Feb. 9, 2015: www.latimes.com/business/la-fi-hacking-insurance-20150210-story.html.

“Companies Join Forces to Fight Hackers,” by Daniel Huang, Wall Street Journal, April 19, 2015: www.wsj.com/articles/companies-join-forces-to-fight-hackers-1429499485.

“Hackers Sell Health Insurance Credentials, Bank Accounts, SSNs and Counterfeit Documents for Over $1,000 Per Dossier,” by Elizabeth Clarke, Dell SecureWorks, July 15, 2013: www.secureworks.com/resources/blog/general-hackers-sell-health-insurance-credentials-bank-accounts-ssns-and-counterfeit-documents/.

Where to Learn More

PROTIVITI • www.protiviti.com 10

Social Media RiskThe Social Lifecycle: Consumer Insights to Improve Your Business [Slideshare], HubSpot, 2014: www.slideshare.net/HubSpot/the-social-lifecycle-consumer-insights-to-improve-your-business.

“42 Percent of Consumers Complaining in Social Media Expect 60 Minute Response Time,” by Jay Baer, Convince & Convert, 2012: www.convinceandconvert.com/social-media-research/42-percent-of-consumers-complaining-in-social-media-expect-60-minute-response-time/.

“3 Ways Customer Service Has Changed (And How to Adapt),” by Nicole Fallon, Business News Daily, Dec. 15, 2014: www.businessnewsdaily.com/7572-future-of-customer-service.html.

2014 Study Impact of Social Media on News [Market Survey], ING, 2015: www.ing.com/Newsroom/All-news/NW/2014-Study-impact-of-Social-Media-on-News-more-crowdchecking-less-factchecking.htm.

Social Media: Consumer Compliance Risk Management Guidance [Press Release], Federal Financial Institutions Examination Council, Dec. 2013: www.ffiec.gov/press/PDF/2013_Dec%20Final%20SMG%20attached%20to%2011Dec13%20press%20release.pdf.

“Should You Social Network With Your Bank?,” by Donna Fuscaldo, Bankrate.com, www.bankrate.com/finance/savings/should-you-social-network-with-your-bank-1.aspx.

Crowdfunding“‘Shadow Banking’ Set for Breakout Year in 2015,” by Jeff Cox, CNBC.com, Dec. 29, 2014: www.cnbc.com/id/102299214.

“As Fed Shines Light on Shadow Banking, Its Regulatory Limits Get Laid Bare,” by Pedro Nicolaci Da Costa and Ryan Tracy, Wall Street Journal, Dec. 21, 2014: www.wsj.com/articles/as-fed-shines-light-on-shadow-banking-its-regulatory-limits-get-laid-bare-1419193684.

Shadow Banking Is Boon, Bane for Financial System [IMF Survey], International Monetary Fund, 2014: www.imf.org/external/pubs/ft/survey/so/2014/POL100114A.htm.

“Crowdfunding Seen Providing $65 Billion Boost to the Global Economy in 2014,” by Catherine Clifford, Entreprenuer.com, Jan. 16, 2014: www.entrepreneur.com/article/230912.

“Crowdfunding: An Alternative Source for Funding with Potential,” by Thomas F. Dapp, DB Research, March 18, 2013: www.dbresearch.com/PROD/DBR_INTERNET_EN-PROD/PROD0000000000303056/Crowdfunding%3A+An+alternative+source+of+funding+with+potential.PDF.

Jumpstart Our Business Startups (JOBS) Act, U.S. Securities and Exchange Commission, 2012: www.sec.gov/spotlight/jobs-act.shtml.

On-Demand Services“The On-Demand Economy by the Numbers,” by Mark Dudas, theondemandeconomy.org, Dec. 2, 2014: www.theondemandeconomy.org/news/2014/12/2/the-on-demand-economy-by-the-numbers.

“How Instacart Is Growing Its Grocery Delivery by 15-20% a Week,” by Nina Meijers, Foodtechconnect.com, April 2, 2014: www.foodtechconnect.com/2014/04/02/how-instacart-is-growing-its-grocery-delivery-by-15-20-percent-a-week/.

“Shyp, an On-Demand Mailing Service, Raises $50 Million,” by Mike Isaac, New York Times, April 21, 2015: http://bits.blogs.nytimes.com/2015/04/21/shyp-an-on-demand-mailing-service-raises-50-million/?smid=tw-nytimesbits&_r=0.

“Uber Snags $41 Billion Valuation,” by Lisa Fleisher, Douglas MacMillan and Sam Schechner, Wall Street Journal, Dec. 5, 2014: www.wsj.com/articles/ubers-new-funding-values-it-at-over-41-billion-1417715938.

“Airbnb Is Inc.’s 2014 Company of the Year,” by Burt Helm, Inc.com, Dec. 2014: www.inc.com/magazine/201412/burt-helm/airbnb-company-of-the-year-2014.html.

On the Radar“No Ordinary Disruption: The Four Global Forces Breaking All the Trends,” by Richard Dobbs, James Manyika and Jonathan Woetzel, PublicAffairs, 2015.

© 2015 Protiviti Inc. An Equal Opportunity Employer M/F/Disability/Vet. PRO-PKIC-0615-195Protiviti is not licensed or registered as a public accounting firm and does not issue opinions on financial statements or offer attestation services.

Protiviti (www.protiviti.com) is a global consulting firm that helps companies solve problems in finance, technology, operations, governance, risk and internal audit, and has served more than 60 percent of Fortune 1000® and 35 percent of Fortune Global 500® companies. Protiviti and our independently owned Member Firms serve clients through a network of more than 70 locations in over 20 countries. We also work with smaller, growing companies, including those looking to go public, as well as with government agencies.

Named one of the 2015 Fortune 100 Best Companies to Work For®, Protiviti is a wholly owned subsidiary of Robert Half (NYSE: RHI). Founded in 1948, Robert Half is a member of the S&P 500 index.

About Our Risk & Compliance SolutionsWe partner with management, board members and outside counsel to help organizations comply with regulatory requirements, respond to situations of noncompliance and improve the processes around information systems supporting governance, risk and compliance (GRC). We help clients take a disciplined approach to managing credit, market and operational risks through a combination of assessments, process improvement and model review and validation.

Contacts

About Protiviti

Cory Gunderson Managing Director +1.212.708.6313 cory.gunderson@protiviti.com

Jim DeLoachManaging Director+1.713.314.4981jim.deloach@protiviti.com

The Protiviti View — Continuing the Conversation on Our Blog

The risk areas summarized above will continue to evolve, and there is no question that new risks will emerge and affect organizations globally. We are continuing the discussion we’ve started in this newsletter on our blog, The Protiviti View (blog.protiviti.com). Our blog features commentary, insights and points of view from Protiviti leaders and subject-matter experts on key challenges and risks companies are facing today, along with new and emerging developments in the market. We invite you to subscribe and participate in our dialogue on today’s emerging risks. You also can find additional information on our microsite, www.protiviti.com/emergingrisks.