Research Study on Risks for Zoom - GRM Institute

Research Study on Risks for Zoom

Risks for Zoom

By Chrysann D’Souza and Purnima Singh, PGDRM Batch Jan’21-22


  • Founded/launched: 2011/2013 ​
  • Headquarters: San Jose, California ​
  • Founder and CEO: Eric Yuan  ​
  • Total Funding Amount: $146M ​
  • Valuation at IPO: $9.2B ​
  • Current Market share: 20.32%​
  • Number of Investors: 17 ​
  • Zoom Business Model Type: Freemium + Paid Subscription with value-added services​



Zoom platform Products and Services



Major Risks


  • Cyber security risk​
  • Financial risk​
  • Competition risk​
  • Third-party risk​
  • Catastrophic risk​
  • Legal and compliance risk​
  • Reputational risk


Data Privacy and Security Risk


Zoom Bombing

  • Historically, anyone with a Zoom meeting link or ID could enter the meeting room and eavesdrop on an entire conversation. Uninvited guests could crash digital meetings to display inappropriate content or make offensive gestures.​
  • False claims of End-to-end encryption. Zoom’s anti-tampering mechanism has a vulnerability. All good applications have an anti-tampering mechanism, but Zoom’s is weak.

Threat to Apple and Windows users

  • There are many iOS vulnerabilities that hackers exploited via the Zoom application and targeted Apple users. A security researcher showed how he could turn on participants’ webcams during calls even if they have selected the option “turn off my video when joining a meeting.” He was also able to make participants join a meeting without their permission. ​
  • Zoom allowed hackers to insert malicious codes into Windows users’ devices (7 or earlier versions), access them remotely, and execute arbitrary code.​

Data Handling Issues and Privacy Concerns

  • Zoom has been under scrutiny for leaking the personal information of users such as their email addresses, photos, and giving strangers the option to start a video call with them. ​
  • This comes even as a lawsuit has been filed against Zoom for sharing data with third parties such as Facebook without user permission.​

Foreign concerns

  • According to Time, U.S. counterintelligence agencies have observed espionage attempts from Russia, Iran, and North Korea as well – all of them trying to spy on Americans’ Zoom video chats.​


Major Competitors



Financial risks


  • May not be able to sustain the revenue growth rate in the future.​
  • Any decline in demand for the platform, especially post the pandemic.​
  • Lack of innovation due to rapid technological changes.​
  • Failure to effectively develop and expand the marketing and sales capabilities or increase the customer base for the platform​
  • Inability to maintain a strong brand or enhance the brand.​
  • Significantly be affected by the change in the economy.​
  • Risks due to foreign exchange & interest rate risks.


Competitive risk 


  • Competitive and rapidly changing market.​
  • With the introduction of new technology and market entrants, competition will intensify. ​
  • Fierce competition from consumer-oriented platforms.​
  • Competitors may make acquire or enter into strong strategic relationships. ​
  • Price sensitive. ​





This report has been produced by students of Global Risk Management Institute for their own research, classroom discussions and general information purposes only. While care has been taken in gathering the data and preparing the report, the student’s or GRMI does not make any representations or warranties as to its accuracy or completeness and expressly excludes to the maximum extent permitted by law all those that might otherwise be implied. References to the information collected have been given where necessary.

GRMI or it’s students accepts no responsibility or liability for any loss or damage of any nature occasioned to any person as a result of acting or refraining from acting as a result of, or in reliance on, any statement, fact, figure or expression of opinion or belief contained in this report. This report does not constitute advice of any kind.


Read the full research study here: Research study on Risks for Zoom


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