Revealed – top risks for TMT sectors
Revealed – top risks for TMT sectors | Insurance Business America
Insurance News
Revealed – top risks for TMT sectors
Analysts on the importance of aligning businesses with an evolving industry
Insurance News
By
Jonalyn Cueto
The technology, media, and telecoms (TMT) sectors are facing heightened concerns over cybersecurity and regulation, as the industry’s reliance on artificial intelligence (AI) and other innovations accelerates. According to a report by WTW, a global advisory and solutions company, cyber and data privacy risks now rank as the most significant threats to the sector, outpacing other critical issues such as regulatory hurdles and trade tensions.
The Technology Media and Telecoms Risk Report 2024 highlighted that 67% of respondents view innovation as a top strategic priority over the next two years, driven by fears of being outpaced by competitors or nimble start-ups. However, this push for innovation, particularly through AI and machine learning, is accompanied by growing concerns about cybersecurity vulnerabilities.
Cyber risks remain the most pressing threat, with 51% of media and telecom businesses and 46% of technology firms identifying it as a key concern. Ransomware attacks, which are on the rise globally, were flagged by 62% of respondents as the top cyber threat.
Navigating a challenging environment
In addition to cybersecurity, regulatory challenges have become a significant barrier to growth. More than half (55%) of industry professionals pointed to regulation as an obstacle, particularly as governments around the world impose stricter rules on market dominance, ownership structures, and the use of critical infrastructure like AI and 5G technologies.
“Technology businesses are clearly riding a wave of unprecedented opportunity and demand,” said Matt Grimwade, client relationship director at WTW. “TMT businesses need to navigate this changing landscape carefully and reassess their risks and risk management strategies to meet future challenges.”
Geopolitical tensions, especially trade disputes between China and Western countries, were identified as a top concern by 74% of respondents. These tensions have led to greater restrictions on cross-border technology flows and tariffs.
Environmental, social, and governance (ESG) factors, particularly climate change, have also emerged as a key consideration. Half of the surveyed respondents ranked climate change among their primary concerns, with 54% in the media sector highlighting the environmental impact of new technologies, such as generative AI models, which require significant energy resources.
George Haitsch, TMT industry leader for North America, emphasised the dual nature of technological advancement in the sector. “As new opportunities arise, they inevitably bring new risks,” he said. “Adopting new technologies requires a vigilant approach to potential threats, ensuring that we can adapt safely to the shifting technological landscape.”
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