Risk assessment

At Break Open, our risk assessment service is designed to help businesses identify, evaluate, and mitigate potential threats before they become critical issues. We thoroughly analyze every aspect of your operations, both in the digital world and the real world, to uncover vulnerabilities that could impact your business. By providing clear insights and actionable strategies, we ensure you’re prepared to handle risks effectively, keeping your business secure and resilient.

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The problem

Many companies lose significant amounts of money due to fraud, especially when they fail to conduct proper risk assessments. In 2023 alone, businesses across the U.S. faced a 71% increase in fraud attempts compared to the previous year.

About 96% of companies encountered at least one fraud attempt, with some suffering multiple incidents.

This has led to devastating financial losses, with many businesses losing an average of $100,000 per fraud event, and over 36% facing losses that exceeded $1 million.

The impact of fraud isn't just financial—51% of companies also reported a damaged reputation with customers, investors, or partners as a result of fraud.

Solution

At Break Open, we offer practical solutions to protect your business from fraud by starting with a thorough risk assessment. We look at all areas of your operations, whether it's your financial processes or how you handle sensitive data, to spot any weak points that fraudsters could exploit.

Once we identify those risks, we help you put the right safeguards in place, such as better internal controls or fraud detection systems.

We also emphasize fraud awareness within your team, so everyone knows what to look for and how to respond. By staying proactive, businesses can catch potential issues early, reducing the chances of costly losses or damage to their reputation.

Breakdown of services

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1. Risk Identification

Risk identification is the first crucial step in any assessment. It involves uncovering the vulnerabilities and threats that could harm your business. In this phase, we analyze your company's operations, infrastructure, and data handling practices to discover areas that could be exploited. This may involve:

Operational Risk: Evaluating internal processes for inefficiencies, bottlenecks, and potential areas for fraud.
Cybersecurity Risk: Scanning for vulnerabilities in your IT systems and identifying possible points of attack from cybercriminals.
Third-Party Risk: Reviewing your relationships with vendors, suppliers, or partners to assess the potential risk they introduce to your company.

By using both manual reviews and automated tools such as vulnerability scanners and data analytics, Break Open helps you discover where your business is most at risk.

2. Risk Evaluation

Once risks are identified, the next step is evaluating their likelihood and potential impact on your business. This helps in prioritizing the most critical risks, allowing you to focus resources effectively. Risk evaluation often involves:

Likelihood Assessment: Understanding how likely each identified risk is to occur based on historical data, trends, and current business practices.
Impact Analysis: Determining the financial, operational, and reputational damage each risk could cause if not addressed.

This phase may involve risk quantification techniques like Monte Carlo simulations or scenario analysis to provide a data-driven understanding of potential risks.

3. Risk Mitigation

After evaluating risks, we help you implement targeted strategies to reduce or eliminate them. This may involve:

Process Improvements: Enhancing internal controls, automating procedures, or segregating duties to limit the chance of fraud.
Technology Solutions: Installing firewalls, encryption tools, and endpoint protection to minimize cybersecurity threats.
Training & Awareness: Conducting training for employees on best practices and fraud prevention, making them a key part of the mitigation process.

4. Monitoring & Review

Risk management is an ongoing process, not a one-time event. Once your mitigation strategies are in place, we continuously monitor for new and evolving threats. Regular reviews help ensure that your business remains resilient and agile in response to the ever-changing risk landscape.

Industry-specific

Every industry faces its own specific set of challenges, and Break Open’s risk assessment services are customized to address the critical vulnerabilities businesses face. By applying military-grade strategies and processes, we provide a thorough, strategic approach to identifying and mitigating risks. Here's a closer look at how we handle key industries:

1. Financial Services

In the financial sector, the stakes are high. Cybercrime, fraud, and regulatory pressure combine to create a challenging environment.

Fraud Detection and Prevention: Financial institutions are often targeted by complex fraud schemes. Our risk assessments identify vulnerabilities in transaction monitoring and fraud detection systems. By implementing advanced tools, such as AI-based analytics, we help companies detect unusual patterns in real time and mitigate threats before they escalate.
Regulatory Compliance: Banks and financial services companies need to comply with strict regulations like the General Data Protection Regulation (GDPR), Anti-Money Laundering (AML), and Sarbanes-Oxley Act (SOX). We assess your compliance with these regulations, ensuring that your data practices and reporting are fully secure, preventing costly fines and legal trouble.
Cybersecurity Threats: Financial institutions are among the most frequent targets of cyberattacks, including ransomware, phishing, and data breaches. Break Open conducts detailed assessments of your cybersecurity infrastructure, pinpointing weak spots in firewalls, access control, and encryption protocols. Our military background enables us to apply the same advanced strategies used for high-level national security, helping ensure that sensitive financial data remains secure.

2. Technology and Startups

Tech companies face a fast-paced and ever-evolving risk landscape. From intellectual property theft to data breaches, the risks are high.

Intellectual Property Protection: Startups often handle valuable intellectual property (IP), making them prime targets for cyber espionage. Break Open identifies risks related to IP theft, ensuring that sensitive code, patents, or trade secrets are protected through secure storage and access management protocols.
Data Privacy and Compliance: With the rapid rise of GDPR and California Consumer Privacy Act (CCPA), tech companies must ensure data protection and privacy compliance. We provide assessments of your data handling processes, ensuring compliance and helping you avoid regulatory penalties.
Scaling Risks: As tech startups grow, they often overlook security protocols in the rush to scale. We help identify and mitigate risks that arise during this phase, ensuring that as your company expands, its security framework scales with it, maintaining robust protection across all systems.

3. Manufacturing and Supply Chain

In manufacturing, operational and supply chain risks are crucial, especially in globalized industries.

Supply Chain Vulnerabilities: Manufacturing businesses are increasingly reliant on third-party suppliers. Any disruption in the supply chain can result in major delays and losses. Our risk assessments evaluate the robustness of your supply chain, identifying weak points that could lead to disruption, and offering mitigation strategies such as multi-sourcing or better contingency planning.
Operational Efficiency: Inefficiencies in production lines can lead to financial losses and safety risks. Break Open evaluates your internal processes, identifying bottlenecks and operational risks. We implement improved workflows, safety protocols, and secure operational technologies to reduce downtime and improve overall efficiency.
Industrial Espionage: Manufacturing firms are at risk of espionage, where competitors or foreign actors target proprietary designs, technology, or formulas. Our team assesses risks related to internal and external threats, and offers military-style counterintelligence measures, ensuring that your intellectual property remains secure.

4. Military and Defense Contractors

For businesses involved in defense contracting or related industries, the security stakes are particularly high.

Classified Information Protection: Companies working with the government or military often deal with classified data that requires the highest levels of security. Break Open’s team, with extensive military experience, ensures your data storage and handling meet government security standards.
Supply Chain Security: The defense supply chain is often targeted by foreign adversaries. We assess and mitigate risks throughout your supply chain, ensuring every component meets strict security standards to prevent disruptions or infiltration.
Compliance with Defense Regulations: Defense contractors need to comply with regulations like ITAR (International Traffic in Arms Regulations) and DFARS (Defense Federal Acquisition Regulation Supplement). We help ensure full compliance, reducing the risk of sanctions or contract loss.