Mitigating Inherent Risks In Emerging Technologies

Studies have showed that telecommunications technology and innovation are key drivers of sustainable economic growth in any nation, given their role and functions as an essential contemporary infrastructure.

Through the development of value-added goods and services, increased labor productivity, and improved worker efficiency, the ICT sector offers a chance for economic growth and development that is compatible with environmental protection.

According to retired director, Nigeria Deposit Insurance Corporation (NDIC), Dr. Jacob Afolabi, telecommunications technology and innovation play a substantial role in driving globalization and growth of an economy as they make communications and commerce more transnational.

Nonetheless, the swift advancement of telecommunications technology and innovation has brought about certain risks that must be adequately handled to guarantee the telecom companies‘ (Telcos‘) continued existence and competitiveness, as well as to optimize the advantages gained from these changes, Afolabi asserted.

 

 Risks in Telecoms Industry

While technological advancements are changing the way Telcos operate and do business, it is pertinent to note that, the road ahead won’t be easy as they face unprecedented challenges.

Some of the key emerging technologies and trends shaping the Telcos include 5G, 6G, Internet of Things (IoT) solution, Artificial Intelligence (AI), and Blockchain technology, among others.

No doubt, these technologies present opportunities for Telcos and businesses to thrive, but there are inherent risks associated with their deployment, Afolabi posited.

For instance, while 5G and 6G present immense opportunities for businesses to launch innovative services, there are new cyber security risks arising from expanded, large attack surfaces with multiple entry points, difficulty in detecting anomalies and security incidents and complex security standards that leave loopholes for hackers, the retired NDIC executive asserted.

In an era of rapid technological advancement, the telecommunications industry is leading the way in innovation, impacting how people connect, interact, and conduct business around the world, the executive vice chairman/CEO, Nigerian Communications Commission (NCC), Dr. Aminu Maida affirmed.

„It is more important than ever to manage risks effectively as we navigate this changing climate. We find ourselves at the nexus of history and change today, with new trends and technology bringing with them previously unheard-of opportunities as well as difficulties,” Maida added.

The NCC boss averred that the current landscape of 5G networks for instance, boast of wider attack surface due to the increased number of connected devices and denser network infrastructure, adding that, “We are witnessing the dawn of 6G technology, the next frontier in wireless communication. With promises of even faster speeds, lower latency, and groundbreaking applications, 6G has the potential to revolutionize the way we experience connectivity.”

However, Maida posited that, “With this advancement comes the responsibility to address new risks, from cybersecurity threats to ethical considerations, ensuring that we pave the way for a secure and inclusive digital future.”

On Blockchain technology, telecom operators and Internet Service Providers (ISPs) can use the technology to secure their networks, manage network traffic, and reduce the amount of data they need to store, Afolabi stated.

“Telcos cannot afford not to leverage the opportunities of streamlining their operations with blockchain technology. The technology can help in fraud detection, roaming and settlements, 5G enablement, loT connectivity, cut costs by removing processing overheads related to loT gateways and provide additional layer of security as it makes businesses to benefit from a robust level of encryption,” Afolabi added.

With these benefits come challenges, as the publicly reported losses by cyberattacks against blockchain systems during the past eight years exceed $1 billion globally, Afolabi disclosed.

 

Mitigating risks

Stakeholders who converged at the NCC’s Telecom Industry Risk Management Conference, in Lagos, have however recommended that robust and automated vulnerability management and building cyber-resilient networks and systems, can help mitigate the risks associated with 5G and 6G.

Explaining further, the former NDIC executive, said, “The dynamic nature of 5G services invariably introduces new risks and exposes vulnerabilities present in the software code, Application Programming Interfaces (APIs) and micro-services. Managing these vulnerabilities manually without prioritization becomes a daunting task and vulnerabilities pile up over time.

“This necessitates setting up a robust vulnerability management program that has elements of threat-based prioritization, aggregation capability, and automation to handle the various tasks and provide remedial actions.

“5G players can improve resiliency identifying critical assets and the potential lucrative targets of adversaries through business-impact analysis and make reference to a standard cybersecurity framework (NIST 800-160) and guidance from 3GPP/ITU to identify suitable security controls. In all, embracing prescribed holistic controls will boost the immunity of 56 systems to cyberattacks.”

Speaking on how stakeholders can mitigate the risks associated with blockchain, Afolabi alluded that based on the high security embedded in the technonolgy, the point is not whether it‘s breakable or not, but whether it can be misused. “This is because blockchain itself is just a piece of data; it doesn‘t do anything. It‘s the software and the use of the software that makes the blockchain useful.

“Blockchain itself might be secure, but the use or abuse of the blockchain is where all of the weaknesses come through, hence the reason why Blockchain stakeholders are working on ways to prevent future instances of abusing blockchain technology, but in the meantime, stakeholders leveraging blockchain should direct their efforts at minimizing the likelihood of being abused,” he advised.

In his remarks, Maida asserted that anticipating and managing risks associated with latest technologies and innovations, will require collaboration, innovation, and a proactive approach to ensure the seamless integration of this technology into the present interconnected world.

Maida who was represented by the former executive commissioner, Technical Services, NCC, Engr Ubale Maska at the conference, however advised operations to consider the implications of emerging technologies such as quantum technologies (computing, sensing, and communications), advanced artificial intelligence, and Block Chain (distributed ledger) technologies.

“As we navigate through 5G and the uncharted territory of the next generations of wireless technologies, collaborative efforts among regulators, industry players, and other stakeholders become even more crucial for sharing best practices, threat intelligence, resources and implementing robust risk management strategies. We should therefore move beyond mere compliance and reactive measures, and instead, harness the power of these new technologies and trends to build a resilient and future-proof industry,” he added.

He assured that the commission remained committed to fostering an environment that encourages innovation while prioritizing the security and stability of telecom infrastructure.

The head, Corporate Planning, Strategy and Risk Management at NCC, Kelechi Nwankwo, explained that the fast-disruptive world of the telecoms industry has witnessed convergence of diverse technological advancements with the potential of reshaping the future. „From 5G networks, the Internet of Things (IoT), and Artificial Intelligence (AI), to Cloud Computing and beyond, the possibilities are limitless. However, with great opportunities, comes great risks, and it is our collective responsibility to address these risks and possibly safeguarding the industry‘s growth and sustainability“, he said.

Themed “Evolution and Future Risk Management in the Telecoms Industry: Harnessing Emerging Technologies and Trends,” Nwankwo asserted that the conference aimed to address the new challenges that come with technological advancements.

“The conference is a testament to the collective commitment towards recognizing the evolving risks and challenges experience by stakeholders, while embracing the immense opportunities emerging technologies and trends bring. The telecoms industry has gone through remarkable transformations, and it is our responsibility to stay informed, prepared, and proactive in managing the potential risks ahead,“ he added.