Entrepreneurs must learn to manage business risk in the metaverse

The metaverse is strewn with pitfalls. Having effective safeguards in place, both physical and virtual, will be key for entrepreneurs looking to do business there.

As it is, the metaverse remains largely undefined. It's a challenge to answer the question "What is the Metaverse?" partly because its definition depends on who you ask. In its current state, the "metaverse" includes virtual reality and what we might have previously called "cyberspace", including digital assets such as non-fungible tokens (NFTs), cryptocurrencies and more.< /p>

In the rush to become the first innovators in metaverse technology, companies are giving up on prioritizing risk management. But risk management is as critical in the metaverse as it is in our physical world – all risks are interrelated and must be managed in a connected way. If new entrants to the metaverse are expected to protect themselves against the overwhelming scale and cost of cyber risks, they must learn to identify those risks, continuously monitor threats, and make informed decisions for a strong future on the based on information from past threats and attacks. .

Here are three types of metaverse risks that expand attack surfaces for businesses.

From headsets to chips with highly efficient computing power, virtual worlds need hardware to function. The physical hardware used to run the Metaverse can create a cyber risk in itself.

As people create, expand, and join metaverse worlds, the enormous and powerful potential of this virtual space creates new attack surfaces for bad actors to test and violate. The assemblage of material from multiple sources required to successfully enable entry into this digital reality invites heightened threats like the man-in-the-middle (MITM) attacks we have seen (in real life) at the counters. automatic and on mobile applications.

Related: The Dark Side of the Metaverse and How to Fight It

To ensure security, companies entering or experimenting with the Metaverse will have more places to monitor as part of their risk management...