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Glossary · Regulatory

Dual-Use Technology Risk

Exposure arising from technologies or products designed for civilian purposes that could be diverted for military, surveillance, or harmful applications.

Full definition
Dual-use technology risk encompasses commercial products, research, or capabilities that possess both legitimate beneficial applications and potential misuse for harmful purposes including weapons development, authoritarian surveillance, or human rights violations. Companies face regulatory compliance obligations under export controls, sanctions, reputational damage from controversial end-uses, and ethical dilemmas balancing innovation with responsible deployment. Risk management includes customer screening, end-use verification, contractual restrictions, and ethics review processes. Semiconductor manufacturers face acute dual-use challenges; high-performance chips enable AI advancement and scientific research but also military applications and surveillance systems, requiring sophisticated compliance programs to prevent illegal diversion to sanctioned entities while navigating complex, evolving export control regimes across jurisdictions that can restrict sales to entire geographic regions.
Regulatoryexport-controlsethicsreputational-risk
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