1、Global Technology,Media and Telecoms Risk Report 2024How the industry views its emerging risks and challengesWTW Global TMT Survey 2/Global Technology,Media and Telecoms Risk Report 2024CONTENTSIntroduction 03Key findings 04Industry overview 05Technology 12Media 16Telecoms 20ESG risks 24Conclusion 2

2、7Sample and methodology 28About the surveyWhen May 2024Who 600 senior decision makers,including CEOs and directors and managers of risk,finance,operations,HR,marketing and communications.Where Countries across Europe,North America,Asia-Pacific and Latin America.Sectors:Technology computer and networ

3、k hardware,semiconductors and consumer electronics,IT software and services,internet,digital and social media,emerging technologies.Media broadcasting and cable,publishing,gaming and interactive media.Telecoms telecoms operators,internet service providers,infrastructure equipment,mobile and network

4、equipment.Size 39%of companies valued$250million-$1 billion;25%$1 billion-$5 billion:17%$5 billion-$10 billion;20%over$10 billion.Find full details of our sample and methodology on page 28.Technology,media and telecoms convergenceRisk brakes Cybersecurity and data privacy Technology regulation Trade

5、 tensions Supply chain issues IP and copyright Climate and ESG Data quality in Gen AI modelsAI accelerationSemiconductor developmentData center expansion 5G roll out Global Technology,Media and Telecoms Risk Report 2024/3With digitalization and industry 4.0 making us more dependent on technology and

6、 communications than ever before,this should be a golden era for TMT companies.But life is never that simple.Like other sectors,TMT businesses face adaptation challenges finding the right products and business models to meet fast-changing customer expectations and generate returns on their large inv

7、estments.All against strengthening regulatory,geopolitical and economic headwinds.How is the industry adapting?As this time of unprecedented opportunity and risk we surveyed global leaders in TMT to find out how they are adapting.What are their greatest objectives,fears,Introduction Where is transfo

8、rmation taking TMT?obstacles and prospects?How do they manage their risks and make their businesses resilient to events?Our findings suggest respondents are concerned with a matrix of interconnected issues.As technology,media and telecoms converge in their reliance on innovations such as artificial

9、intelligence(AI)to drive business growth,cybersecurity and data privacy have come to dominate risk agendas across TMT.These threats are further complicated by regulation and geopolitics,from data privacy policies to state-sponsored cyber-attacks.Meanwhile cyber events or trade disputes could lead to

10、 supply chain disruption with all of its knock-on impacts.Understanding these cross-cutting enterprise risks and managing them effectively could be critical in determining who emerges successful in the years ahead.4/Global Technology,Media and Telecoms Risk Report 2024Key findingsInnovation is top p

11、riority67%of respondents ranked innovation among the industrys greatest strategic objectives over the next two years.Firms are embracing AI 51%of technology and 49%of media and telecoms companies named artificial intelligence and machine learning among their greatest opportunities.Cyber is biggest r

12、isk 51%of media and telecoms businesses and 46%of technology firms placed cyber among their biggest risks to success.Ransomware attacks were the biggest cyber risk,cited by 62%.Regulation worries grow67%said regulation changes were their biggest supply chain risk,while 55%said regulation was the big

13、gest obstacle to achieving strategic objectives.Trade barriers begin to bite74%of respondents said trade disputes were among their greatest geopolitical concerns as firms face increasing restrictions and tariffs.Q:What are your organizations top strategic objectives for the next 2 years?(Rank 1/2/3/

14、4/5)Total(600)Media(200)Technology(200)Telecoms(200)Figure 1:Top strategic objectives for the next 2 years715555605158594845626562495850505948696351575655515249676156555554535347Increasing dividendsReducing costsGrowth through acquisitionIncreasing liquidityStabilizing the businessAddress ESG regula

15、tory and investmentcommunity requirementsImproving marginsOrganic growthInnovation0%10%20%30%40%50%60%70%80%90%100%Global Technology,Media and Telecoms Risk Report 2024/5From the outside,TMT appears to be the arch disruptor,pushing out new technologies,platforms and networks the rest of the world mu

16、st adapt to.But the speed and scale of change is no less testing for those within the industry.Technology,media and telecoms companies face their own disruptors and a constant race to capture the benefits of the latest innovations before the next wave renders the current business model,software or m

17、ust-have device redundant.Firms feel the pressure to innovate In our survey,innovation emerged as the industrys greatest strategic objective over the next two years,ranked by 67%of respondents(71%in telecoms).Without constant innovation,firms fear being left behind by their rivals or pushed aside by

18、 nimble,growth-hungry start-up companies.But the pathways to achieving that innovation are narrowing.With increasing trade nationalism,companies face more restrictions on buying start-ups and innovation businesses in hotspots such as Asia and the U.S.This may explain why organic growth(61%)emerged w

19、ell ahead of growth through acquisition among top strategic objectives.Through innovation,TMT companies may disrupt their own existing business models and need to manage the internal transition risks carefully.They are also engaging with new technology early before all the risks are known,as weve se

20、en from the growing number of cases claiming that artificial intelligence(AI)models infringe copyright or were trained on copyrighted works.Industry overviewHeat of innovation forges new opportunities and challengesWithout constant innovation,firms fear being left behind by their rivals or pushed as

21、ide by nimble,growth-hungry start-up companies.6/Global Technology,Media and Telecoms Risk Report 2024Q:Which of these geopolitical risks are you concerned could impact your business?(Rank 1/2/3/4/5)Total(600)Media(200)Technology(200)Telecoms(200)Figure 2:Geopolitical risks that could impact the bus

22、iness706658616057524038776665595458504035766568626458483426746663605957503833Tensions between China and the WestConflict in the Middle EastThe conflict in UkraineTerrorism and security threatsConfiscation risk and currency inconvertibilityPolitical instabilityChanges in international laws,regulation

23、 and agreementsEconomic sanctionsTrade disputes0%10%20%30%40%50%60%70%80%90%100%The globalized world of TMT is shrinkingTrade disputes emerged as the top geopolitical risk factor,ranked by 74%of respondents,channeling fears over increasing nationalism around technology and telecoms infrastructure.Th

24、e tightening web of rules around everything from data privacy to mergers and acquisitions contributed to concerns over regulation,which was the leading obstacle to business objectives,with 55%naming it among their top five.Regulation changes also topped the list of supply chain risk factors in the n

25、ext two years,cited by 67%.In a more challenging global environment,there will be more pressure to onshore production,boost research and development and develop new technologies and solutions internally.Where businesses need to make investments in restrictive countries,were seeing more joint venture

26、s and partnerships rather than direct acquisitions.T+M+T are becoming more intertwinedOne of the standout themes revealed by our results is the increasing interconnectedness of TMT.AI and machine learning stood out as a driver of innovation across the board,featuring among the greatest near-term opp

27、ortunities in all three sectors,while 5G came near the top in both technology and telecoms(see the sector chapters starting on page 12 for more detail).Even media,traditionally less tech-driven than the other TMT sectors,now relies heavily on technology for its survival.In particular,generative AI,w

28、ith its potential to enhance everything from semiconductors to content creation and personalized advertising,is likely to accelerate this convergence.Figure 3:Top cyber risks of concern for the next two years62586058535141454035666057575555473141345862616354493941344262605959545242393837Vulnerabilit

29、ies in the supply chainState-sponsored cyber attacksEmployee errorSocial media risksIoT securitySoftware vulnerabilitiesData privacy compliance/breachesCloud securityNetwork securityRansomware attack0%10%20%30%40%50%60%70%80%90%100%Q:Which cyber risks are you most concerned about over the next two y

30、ears?(Rank 1/2/3/4/5)Total(600)Media(200)Technology(200)Telecoms(200)Global Technology,Media and Telecoms Risk Report 2024/7Technology convergence is driving cyber riskInterconnectedness between the sectors was even more starkly highlighted when we asked about the greatest risks businesses face over

31、 the next two years.Cyber security and data privacy emerged as the number one concern in all three sectors(see the sector chapters).Businesses need to adapt to this new risk landscape and prioritize cyber risk management as equally,if not more,important than physical and safety risks.(See the Cyber

32、and data privacy comment panel for further analysis,page 9).We were encouraged to find that many businesses are making progress 38%said they had coordinated processes for identifying and monitoring cyber risks and 40%said those processes were embedded in strategic planning and capital allocation.How

33、ever,with the threats constantly shifting,TMT companies need constant vigilance to keep pace and avoid significant exposure gaps.AI and climate make resilience harder to achieveTMT businesses are making efforts to increase their business resilience in the face of both physical and intangible risks.M

34、ore than three-quarters of firms(76%)review and refresh their business continuity plans at least once every six months.They may face fresh challenges in coming years however.As AI becomes embedded in software and systems across the TMT and other sectors,there are growing concerns not just about its

35、impact on society and employment,but also the energy it requires and whether data centers,and the electricity grid,can cope with the demand(see the ESG risks chapter for further analysis on page 24).Firms also seem uncertain about how well they are protected against increasing physical risks related

36、 to climate change.Two-thirds(67%)said that while they thought they had some cover against the impact of extreme weather on their supply chain,they were not sure if it was sufficient.Increasing reliance on new technologies to generate growth and automate production and business processes is opening

37、up new threats and vulnerabilities and reshaping risk profiles.Figure 4:Insurance for extreme weather events in supply chainQ:What best describes your insurance for the impact of extreme weather events in your supply chain?(Single code question)Total(600)Media(200)Technology(200)Telecoms(200)0%10%20

38、%30%40%50%60%70%80%16435171293653326732Adverse weather somewhere in our supply chain could have a serious financial impact on our business and we have no insurance for thisWe have some cover for extremeweather events somewhere in our supply chain,but not sure if it is suficientWe have cover that ens

39、ures extreme weather somewhere in our supply chain would not have a serious impact on our business/financial results8/Global Technology,Media and Telecoms Risk Report 2024Horizon risks are here and nowIn 2021,WTW engaged with business leaders in conversations about their future priorities,risks and

40、challenges,published in our TMT Risks on the horizon report1.Our 2024 survey shows that emerging issues identified then have now become pressing concerns.A key theme in the 2021 report was innovation and business model disruption.Business leaders were worried about the threat of new competitors and

41、technologies,and their ability to capture the benefits of digitalization fast enough to satisfy key stakeholders.That pressure has intensified as the pace of change increases innovation is the biggest strategic priority in our 2024 survey.Risks on the horizon foresaw“governments taking an increasing

42、ly assertive stance on regulation as civil society raises difficult questions about the political and economic role of new technologies”.In the years since then weve seen regulation tighten on several fronts,including ownership structures and dominant market positions.In our 2024 survey,increasing r

43、egulation emerged as a top risk factor and the greatest obstacle to achieving business objectives.In the 2021 report,we advised that firms should expect increasing scrutiny of data privacy risk management and greater compliance challenges as countries move towards tougher enforcement.In 2024,our sur

44、vey shows firms are feeling the heat cyber and data privacy was the number one risk factor across all the TMT sectors,while concern over the potential brand damage pushed reputation up the risk table.1https:/ Global Technology,Media and Telecoms Risk Report 2024/9Comment:Cyber and data privacy riskR

45、apidly evolving threat landscape poses security challengesThe global IT outage in July 2024 sent shockwaves through the TMT industry.Updates meant to make systems more secure ended up causing massive disruption,as a fault at a single supplier quickly cascaded.In that case the fault was a software er

46、ror,but a similar domino effect could easily result from a cyber-attack,potentially compromising your systems and data,and those of your customers.Although cybersecurity has improved across TMT in recent years,partly driven by the controls required by insurers,the threat landscape keeps evolving.Tec

47、hnologies such as AI and the internet of things(IoT)may add new vulnerabilities and endpoints,challenging cybersecurity defenses.AI could also be used as a tool by criminals to help them stage more sophisticated attacks,while open versions of the technology could add to data privacy risks and lead t

48、o unforeseen liabilities if it is used to create deep fakes,imports bias or infringes intellectual property.As these technologies and threats evolve,TMT companies need to be proactive in addressing and managing their exposures.Understand your specific risks:The risks you face depend on factors such

49、as how you use technology,your network dependency,the importance of data privacy and your AI algorithms and model.Make sure you understand your specific exposures and plan how to mitigate them.Use the power of technology as a strength:As well as adding risks,new technologies such as AI can also prov

50、ide tools to strengthen cybersecurity,for example through predictive modeling of alerts to distinguish the real threats from background noise.Review your reliance on individual suppliers:Take a closer look at your vendors and understand the impact a cyber incident in the supply chain could have on y

51、our business.Understand the small print of the contracts and how much indemnity they provide if things go wrong.Optimize your cover:Warranties issued by suppliers may not cover your losses,including third party liabilities,if a serious incident occurs.Consider how insurance can fill the gaps and hel

52、p you build your cyber resilience.Q:Which factors will have the greatest impact on your supply chain risks over the next two years?(Rank 1/2/3/4/5)Total(600)Media(200)Technology(200)Telecoms(200)Figure 5:Factors impacting supply chain risks in the next two years70676749496763655152646159494567646349

53、48WarComponent and raw material shortagesDependence on a single supplier/locationLogistics and warehousing shortagesJust-in-time operating modelsShortage of workersIntellectual property theftTrade disputesCybersecurityRegulation changes0%10%20%30%40%50%60%70%80%90%100%0%10%20%30%40%50%60%70%80%90%10

54、0%4743474123504737432745485149314746454427WarComponent and raw material shortagesDependence on a single supplier/locationLogistics and warehousing shortagesJust-in-time operating modelsShortage of workersIntellectual property theftTrade disputesCybersecurityRegulation changes10/Global Technology,Med

55、ia and Telecoms Risk Report 2024Comment:Supply chain and business interruptionIntangible threats spark fears of supply chain disruptionOur survey shows that TMT companies are more concerned about the impact of intangible risks such as regulation changes and cyber security on their supply chains than

56、 physical risks such as material and logistics shortages.Recent events suggest these concerns may be well founded.In the recent global IT outage,one bad update provided by a cyber security supplier caused severe business interruption,not just across TMT but every industry that relied on its clients

57、systems.Meanwhile the concentration of semiconductor manufacturing in Taiwan has created a huge aggregation of supply chain risk,which is driving regulation in the U.S.,China and Europe,including measures to limit foreign ownership and boost domestic production.As well as the dislocation this brings

58、,it can also add new challenges for example,onshoring production to storm-prone centers such as Texas may increase extreme weather risks.Companies should also be prepared for shock events remembering that the next pandemic or Suez canal blockage may be just around the corner.We recommend a vigilant

59、and proactive approach across a broad spectrum of supply chain risks,including those that are least expected.Global Technology,Media and Telecoms Risk Report 2024/11Comment:Geopolitical riskTrade disputes and shadow wars have far reaching ripple effectsOur survey suggests strong concern among TMT co

60、mpanies about the impact of trade tensions and the decoupling of ties between China and the West.Weve already seen how this can play out,with tariffs and ownership restrictions around key technologies such as 5G and semiconductors directly affecting how companies can do business and forcing a realig

61、nment of supply chains.In an increasingly interconnected world,geopolitical events can also have indirect,unforeseen consequences,where companies have no direct exposure in the territories concerned.For example,the conflicts in Ukraine and Israel,and the shadow wars that go on around them,have impac

62、ted everything from cyber security and transportation costs to reputational damage,where companies are seen to have associations on the wrong side.It can even affect who firms are able to hire as tech specialists from the warring countries are drafted into the army.Managing all of these risks and po

63、tential impacts is not easy.However,TMT firms can get ahead by carrying out regular horizon scanning to identify emerging risks and trends that could have unforeseen ripple effects down the line.Where possible,they should have a dedicated resource to analyze geopolitical events and build intelligenc

64、e around them,which can feed into due diligence,risk management processes and business decision making.WTWs geopolitical team includes specialists in political risk analytics,crisis management,risk engineering and insurance broking.We monitor events constantly and can help you understand the likely

65、impact on your business,so you can start to anticipate risks and build resilience.Steps to improve your supply chain resilienceMap your exposures:It can be hard to gain visibility throughout the supply chain.Tools such as WTWs Global Perils Diagnostic can help you visualize and address your risks.Di

66、versify production:reduce reliance on single supplier and locations and dual source production where possible.Build in redundancies and workarounds:make sure you have a backup if a supplier fails,including second and third tier suppliers.Develop closer working relationships:Working in partnership wi

67、th primary suppliers can improve your understanding of supply chain issues.Make sure everyone is clear about their contractual liabilities if an incident occurs.Review your recovery plans:Make sure your disaster recovery and business continuity plans trigger clear actions throughout the business.Str

68、ess test your response using scenario planning and simulation modeling,such as digital twinning.Explore insurance options:In recent years the insurance market has been more willing to address supply chain problems and develop targeted insurance products to solve them.Ask your broker about the latest

69、 solutions.Technology1 AI and machine learning 51%2 Accelerated pace of innovation/R&D 43%3 Remote work technologies 43%4 5G 42%5 Increasing automation and digitalization 41%1 Cyber and data privacy risk 46%2 Regulatory and anti-trust challenges 42%3 Business interruption 42%4 Supply chain disruptio

70、n 40%5 Speed of disruptive innovation 38%Greatest opportunitiesTop risksQ:What are the greatest risks to your organizations success over the next 3-5 years?(Rank 1/2/3/4/5).Base:200 Figure 6:Greatest risks to success over the next 3-5 years4642424038383736343332313025Directors and oficers liability

71、riskIntellectual property InfringementWorkforce and talent issuesGeopolitical tensionsClimate and environmental risksIncreasingly complex end-product requirementsElectronic waste managementProduct recall/product liabilityBrand and reputational riskSpeed of disruptive innovationSupply chain disruptio

72、nBusiness interruptionRegulatory and antitrust challengesCyber and data privacy threats0%10%20%30%40%50%60%70%80%90%100%Global Technology,Media and Telecoms Risk Report 2024/13But now things are changing.As new technologies such as artificial intelligence(AI)and 5G weave into every strand of industr

73、y and society,the stakes are becoming too high to ignore.Governments are taking an increasingly assertive stance on technology regulation to secure their own supply chains and industries and restrict harmful impacts on everything from child safety to the democratic process.Firms face increasing glob

74、al scrutinyOur survey suggests these forces are being keenly felt by technology companies.Regulatory and anti-trust challenges emerged as the second biggest risk to business success in the sector over the next two years,ranked by 42%of technology respondents far higher than in media or telecoms.Tech

75、nology businesses are clearly riding a wave of unprecedented opportunity and demand,harnessing the vast potential that technologies can bring.More than half(51%)named AI and machine learning among their top opportunities,with 5G and automation and digitalization not far behind.However,the flip side

76、of this rapid expansion and growing economic importance is increasing scrutiny.Restrictive policies covering ownership,market dominance,data,AI and 5G,are being enacted across all of the worlds main trading blocks.Web of regulation tightens around critical technologyFor much of the 21st century,gove

77、rnments and regulators have given technology a free pass,either because of the benefits it brought,or because it was simply moving too quickly to keep up.Q:What are the greatest opportunities for your sector over the next 2 years?(Rank 1/2/3/4/5).Base:200 Figure 7:Greatest opportunities for the sect

78、or over the next 2 years514343424139353433272525242121Gaming and entertainmentE-commerce and digital paymentsElectric vehicle developmentNew joint venturesDrone technologyHealthcare technologiesEmerging marketsBlockchainEdge computingClean energy and sustainabilityIncreasing automation and digitaliz

79、ation5GRemote work technologiesAccelerated pace of innovation and R&DArtificial intelligence(AI)and machine learning0%10%20%30%40%50%60%70%80%90%100%14/Global Technology,Media and Telecoms Risk Report 2024Barriers to trade are risingThese changes create ripple effects through global technology suppl

80、y chains,with greater barriers to doing business and increased accumulation of risk where suppliers are concentrated in politically sensitive territories.This may explain why business interruption and supply chain disruption featured as leading risks for technology companies,cited by 42%and 40%of re

81、spondents respectively.Cyber threats the top risk for technology companies at 46%are also driving increasing regulation around both data protection and cybersecurity.If companies dont get control of these issues,the regulatory net could become even tighter and more difficult to negotiate in future.P

82、oor visibility may hinder risk managementTechnology companies appear to be prioritizing cyber in their risk management strategies.An impressive 40%placed themselves at the highest level of risk management maturity where processes are embedded in strategic planning and capital allocation.However,its

83、concerning that they seem less sure of their approach to managing supply chain risk,with only 19%at the highest level.This may be due to poor visibility in a world of ever-increasing product complexity.In our recent supply chain risk report for the semiconductor industry,81%of respondents said they

84、lacked data and knowledge to fully understand their supply chain risks,naming this among the greatest barriers to effective risk management.Q:Please indicate your organizations approach to risk management for each of the following risks.(Single code per row question)Note:Totals may not add up to 100

85、%due to roundingRisk management is embedded in strategic planning,capital allocation and other business processes.We have early warning systems to identify breaches and require corrective actionRisk management processes including risk identification,monitoring,measurement and reporting,are co-ordina

86、ted across business areasWe have risk management processes operated in a timely and consistent way.We take action to address priority issuesWe have risk management processes,but they dont always operate consistently and effectivelyWe dont have standardized risk management processes and rely on indiv

87、iduals monitor and manage risksFigure 8:Organizations approach to risk managementSupply chainDirectors and oficersEnvironmentalProduct recallContingent business interruptionIntellectual propertyPolitical violence/terrorismRegulatory/political riskProperty damage(PD)Business interruption(BI)Reputatio

88、nCyber34103429659971114145404648444642394330494032303029292827262321191720202319261826302541250%10%20%30%40%50%60%70%80%90%100%Global Technology,Media and Telecoms Risk Report 2024/15TechnologyRegional variations Cyber risk appears to be a lesser concern for tech companies in North America than othe

89、r regions just 34%ranked it among their top risks.Companies there have longer experience of managing cyber risk and may have improved their processes as a result.Supply chain disruption was the number one risk for technology firms in APAC,ranked by 58%.This may reflect growing concern over tensions

90、between China and Taiwan,where a large proportion of the worlds semiconductor production is located.Remote work technologies was among the standout priorities for tech companies in Latin America,ranked by 54%,as companies take advantage of new ways of working that reduce the need for travel across t

91、he vast region.Regulatory and antitrust challenges were a greater concern in Europe(46%)than other global regions,as Europe continues to develop strong rules around issues such as data privacy,competition and ownership.Media1 Online advertising 52%2 AI and machine learning 49%3 Original content prod

92、uction 46%4 Influencer marketing 46%5 Streaming 45%1 Cyber and data privacy risk 51%2 Brand and reputational risk 43%3 Content piracy/copyright 42%4 Business interruption 42%5 Generative AI 41%Greatest opportunitiesTop risksMore than half(52%)of respondents named advertising as a leading opportunity

93、,well ahead of subscription models and paywalls(43%).The finding includes segments such as streaming,gaming and film,which have traditionally operated on a subscription or purchase model.As demand for these services has reached saturation,many producers are embracing the potential of advertising to

94、increase revenues.However,they find themselves competing in an increasingly crowded market for content,including individual creators,restricting their ability to attract the consumers that advertisers want to reach.AI will help monetize customer dataInvestment in artificial intelligence(AI),ranked b

95、y 49%as a leading opportunity,may help businesses to gain advantage,for example by monetizing consumer data and driving new sophisticated models,from shoppable TV ads to personalized advertising.Generative AI also offers huge potential to increase efficiency and productivity,for example speeding up

96、content production and freeing up time for content creators to focus on higher value tasks.However,gen AI was also a top five risk at 41%,reflecting concerns about issues such as misinformation and plagiarism and growing demands for stronger regulation of the technology.Q:What are the greatest oppor

97、tunities for your sector over the next 2 years?(Rank 1/2/3/4/5).Base:200 Figure 9:Greatest opportunities for the sector over the next 2 years524946464543414140383726Gaming and entertainmentContent monetizationVirtual and augmented realityPersonalized and localized contentEmerging marketsLivestreamin

98、g on social mediaSubscription models and paywallsStreamingInfluencer marketingOriginal content productionArtificial intelligence(AI)and machine learningOnline advertising0%10%20%30%40%50%60%70%80%90%100%Global Technology,Media and Telecoms Risk Report 2024/17All change for media business models and

99、risk profiles Online advertising emerged as the top opportunity in media over the next two years,illustrating how rapid changes in technology and consumer behavior are upending traditional business models and reshaping risk profiles.Figure 10:Greatest risks to success over the next 3-5 years51434242

100、414134Directors and Oficers liability riskClimate and environmental risksIntellectual property InfringementGeopolitical tensionsWorkforce and talent issuesSupply chain disruptionCompetition and subscription churnCensorship and content restrictionsRegulatory challengesGenerative AIBusiness interrupti

101、onContent piracy and copyright infringementBrand and reputational riskCyber and data privacy risks0%10%20%30%40%50%60%70%80%90%100%Directors and Oficers liability riskClimate and environmental risksIntellectual property InfringementGeopolitical tensionsWorkforce and talent issuesSupply chain disrupt

102、ionCompetition and subscription churnCensorship and content restrictionsRegulatory challengesGenerative AIBusiness interruptionContent piracy and copyright infringementBrand and reputational riskCyber and data privacy risks0%10%20%30%40%50%60%70%80%90%100%33313030292927Directors and Oficers liabilit

103、y riskClimate and environmental risksIntellectual property InfringementGeopolitical tensionsWorkforce and talent issuesSupply chain disruptionCompetition and subscription churnCensorship and content restrictionsRegulatory challengesGenerative AIBusiness interruptionContent piracy and copyright infri

104、ngementBrand and reputational riskCyber and data privacy risksQ:What are the greatest risks to your organizations success over the next 3-5 years?(Rank 1/2/3/4/5).Base:200 18/Global Technology,Media and Telecoms Risk Report 2024Firms are focusing on cyber risk managementThe results suggest media com

105、panies are focusing efforts on gaining control over cybersecurity as well as brand and reputation.More than 4 in 10(42%)said their processes for managing cyber risks were embedded in strategic planning,while 36%had the same level of risk management maturity for reputation risks both higher than in t

106、echnology or telecoms.The corresponding figures for product recall and supply chain were 20%and 17%respectively,reflecting the relative unimportance of physical supplies and products in this sector.Q:Please indicate your organizations approach to risk management for each of the following risks.(Sing

107、le code per row question)Note:Totals may not add up to 100%due to roundingRisk management is embedded in strategic planning,capital allocation and other business processes.We have early warning systems to identify breaches and require corrective actionRisk management processes including risk identif

108、ication,monitoring,measurement and reporting,are co-ordinated across business areasWe have risk management processes operated in a timely and consistent way.We take action to address priority issuesWe have risk management processes,but they dont always operate consistently and effectivelyWe dont hav

109、e standardized risk management processes and rely on individuals monitor and manage risksFigure 11:Organizations approach to risk managementSupply chainProduct recallDirectors and oficersEnvironmentalBusiness interruption(BI)Regulatory/political riskContingent business interruptionIntellectual prope

110、rtyPolitical violence/terrorismProperty damage(PD)ReputationCyber33449114101311118354140454337444346304043423628282827262623212017212129242126272218393033110%10%20%30%40%50%60%70%80%90%100%Global Technology,Media and Telecoms Risk Report 2024/19MediaRegional variations Generative AI was named among

111、the top business risks by just 19%of media companies in Asia-Pacific,compared to 41%globally and 52%in Europe.This suggests that media companies there may be further ahead in managing the potential downsides.Content piracy and copyright infringement was the number one risk for media companies in Lat

112、in America,named by 62%.This is a persistent problem in middle-and lower-income countries where many people cannot afford to pay for content.Livestreaming on social media was considered a top opportunity by 48%of respondents in North America,compared to 41%globally,suggesting that media companies in

113、 the region are being less cautious about exploring its potential to boost audiences.Online advertising seems to be most attractive to companies in Asia-Pacific(61%)and Latin America(69%),perhaps indicating a more urgent need to move towards digital marketing in those regions.Telecoms1 Cybersecurity

114、 62%2 5G expansion 56%3 Fiber optic broadband expansion 52%4 AI and machine learning 49%5 Internet of things connectivity 47%1 Cyber and data privacy risk 51%2 5G security concerns 48%3 Brand and reputational risk 38%4 Business interruption 36%5 Competition and customer churn 35%Greatest opportuniti

115、esTop risksQ:What are the greatest opportunities for your sector over the next 2 years?(Rank 1/2/3/4/5).Base:200 Figure 12:Greatest opportunities for the sector over the next 2 years6256524947454542383633Increases in pricing and marginsEmerging marketsSmart buildingsCloud servicesSatellite communica

116、tionRemote workingInternet of things(IoT)connectivityArtificial intelligence(AI)and machine learningFibre optic broadband expansion5G expansionCybersecurity0%10%20%30%40%50%60%70%80%90%100%Global Technology,Media and Telecoms Risk Report 2024/21While 51%of respondents named cyber and data privacy am

117、ong their top risks over the next two years,a larger proportion(62%)said cybersecurity was one of their biggest opportunities.Over recent years,telecoms companies have been busy acquiring specialist cybersecurity providers or developing their own products and innovations.This is partly driven by a d

118、esire to capture a greater share of a fast-growing market,and partly to improve their own reputation for security amid calls for action to protect national infrastructure.5G security risk is top of mindThe expansion of 5G featured as both a leading opportunity(56%)and risk factor(48%)for telecoms fi

119、rms.As well as risks associated with the security of 5G equipment and infrastructure,there are concerns about the cost of implementation and potential regulatory and data privacy threats.These findings reflect an increasingly double-edged sword,where the innovation that drives growth and success can

120、 also be an Achilles heel.Over the coming years,the expansion of the Internet of Things(IoT),artificial intelligence(AI)and fiber optic broadband ranked as leading opportunities in telecoms will pose similar growing risks.Telecoms firms turn cyber risk into opportunity Telecoms companies are a major

121、 target for cyber criminals because of the vast amounts of data they handle and the critical infrastructure they manage.Yet,our survey suggests many are turning that adversity into a business asset.Q:What are the greatest risks to your organizations success over the next 3-5 years?(Rank 1/2/3/4/5).B

122、ase:200 Figure 13:Greatest risks to success over the next 3-5 years514838363534333231292828272726Geopolitical tensionsDirectors and oficers liability riskClimate and environmental risksWorkforce and talent issuesIntellectual property InfringementSupply chain disruptionInfrastructure investment and c

123、apex pressuresSpectrum allocation and auction risksRegulatory challengesNetwork reliability and resilienceCompetition and customer churnBusiness interruptionBrand and reputational risk5G security concernsCyber and data privacy risks0%10%20%30%40%50%60%70%80%90%100%22/Global Technology,Media and Tele

124、coms Risk Report 2024Cyber threats linked to reputation concernsRecent cybersecurity incidents and data breaches in the telecoms sector have led to calls for stronger action to tighten cyber security,adding to the sectors regulatory worries.The potential fallout from an incident may also be contribu

125、ting to perceptions of brand and reputation,which was the third biggest risk factor in our survey,and a particular concern in Asia-Pacific,ranked by 58%of respondents there.Meanwhile,increasingly intense competition in areas such as mobile services for consumers,is driving fears about customer churn

126、,named by more than a third(35%)among their greatest risks.Firms may be exposed to business interruptionMore than a third(36%)of telecoms respondents said their companies insurance covered damage to property only and not business interruption,a higher proportion than the other TMT sectors.This lack

127、of protection was also apparent in their approach to risk management.While 40%had the highest level of risk management maturity for property damage risks,this figure dropped to 24%for business interruption and 25%for contingent business interruption.This is concerning given the huge impact that an o

128、utage can have as demonstrated by the large-scale disruption caused by the recent Crowdstrike incident.Q:Please indicate your organizations approach to risk management for each of the following risks.(Single code per row question)Note:Totals may not add up to 100%due to rounding Risk management is e

129、mbedded in strategic planning,capital allocation and other business processes.We have early warning systems to identify breaches and require corrective actionRisk management processes including risk identification,monitoring,measurement and reporting,are co-ordinated across business areasWe have ris

130、k management processes operated in a timely and consistent way.We take action to address priority issuesWe have risk management processes,but they dont always operate consistently and effectivelyWe dont have standardized risk management processes and rely on individuals monitor and manage risksFigur

131、e 14:Organizations approach to risk managementSupply chainDirectors and oficersBusiness interruption(BI)Contingent business interruptionEnvironmentalProduct recallPolitical violence/terrorismRegulatory/political riskIntellectual propertyReputationCyberProperty damage(PD)52544481081086353848374538374

132、1414937414038343431302927252420192123142521292623261836341110%10%20%30%40%50%60%70%80%90%100%Global Technology,Media and Telecoms Risk Report 2024/23TelecomsRegional variations Brand and reputational risk was a much greater concern for telecoms companies in Asia-Pacific at 58%,compared to 38%globall

133、y.In a highly regulated and competitive regional market for telecoms services,any reputational damage may have a deep impact.5G security risks are biggest in Latin America,where it was named as a top concern by 63%,compared to 41%in North America,reflecting nervousness about the potential vulnerabil

134、ities and cost of new infrastructure across the region.Smart buildings emerged as a leading opportunity for North American media companies,ranked by 48%,compared to 38%globally,as U.S.telecoms companies embrace opportunities to develop wireless technologies that improve connectivity within buildings

135、.Fiber-optic broadband was the number one opportunity for European telecoms firms at 63%compared to 43%in North America.This suggests a greater urgency to complete the roll out of full fibre broadband as the region lags behind the U.S.and Asia in connection speeds.2 De Vries,A.(2023).The growing ene

136、rgy footprint of artificial intelligence.Joule,7(10),2191-2194.https:/doi.org/10.1016/j.joule.2023.09.00424/Global Technology,Media and Telecoms Risk Report 2024This growing influence is creating pressure from regulators,investors and consumers for TMT companies to act responsibly.Some investment ad

137、visors are reducing or eliminating investments in companies that fail to apply environmental,social and governance(ESG)principles.However,managing these risks and meeting regulatory requirements is becoming more difficult.For example,how do you make sure that innovations such as artificial intellige

138、nce(AI)will operate ethically when the pace of change is so fast?And how do you deliver on climate goals when the energy required to power AI is driving emissions dramatically upwards?AI is driving an increase in climate riskClimate change was the number one risk when we asked about environmental,so

139、cial and governance(ESG)factors,ranked by 50%of respondents among their top concerns(54%in media).ESG and reputation risksFailure to meet ESG goals could damage reputations Few sectors in the modern world have such an impact on people and society as technology,media and telecoms,reshaping our social

140、 interactions,working lives and how we shop and do business.This partly reflects rising concern over the increasing carbon footprint of new technologies.In particular,generative AI models such as ChatGPT require more computing power than traditional computing.To ensure that AI is net positive for so

141、ciety,its energy consumption and carbon emissions need to be reduced.In the short term,TMT firms may be able to mitigate this risk through measures such as choosing data centers that use renewable energy,or more efficient processing units.Reputation risks are difficult to manageWe were encouraged to

142、 see that the vast majority of the companies we surveyed(91%)have a formal process for managing ESG risks,in which all relevant staff were trained.Most firms(81%)also say they monitor and measure their reputation and use reputational risk advice(69%).But half(50%)think they are more exposed to reput

143、ational risk than other sectors,while 47%are concerned that reputational risk is more difficult to manage than other risks.These conflicting results indicate a dynamic environment where technology and events may run ahead of the risks management processes designed to manage and mitigate them.By 2027

144、,AI could consume as much electricity as a country the size of the Netherlands.2 Q:Which environmental,social and governance(ESG)factors pose the greatest risk for your business?(Rank 1/2/3/4/5)Total(600)Media(200)Technology(200)Telecoms(200)Figure 15:ESG factors posing the greatest risk495350424740

145、544642494546484851464439504948454541Bribery and corruptionLabor standards and human rightsPollution,waste and recyclingNatural resources(water,biodiversity,raw materials)Energy(eficient,renewable,sustainable)Procurement(sustainable,green)Diversity and inclusionExtreme weather eventsCommunity relatio

146、nsAudit committee structure and board compositionEmployee engagementClimate change(carbon footprint and emissions)0%10%20%30%40%50%60%70%80%90%100%0%10%20%30%40%50%60%70%80%90%100%444335373627423339343934384039393437413838373633Bribery and corruptionLabor standards and human rightsPollution,waste an

147、d recyclingNatural resources(water,biodiversity,raw materials)Energy(eficient,renewable,sustainable)Procurement(sustainable,green)Diversity and inclusionExtreme weather eventsCommunity relationsAudit committee structure and board compositionEmployee engagementClimate change(carbon footprint and emis

148、sions)Global Technology,Media and Telecoms Risk Report 2024/25Q:To what extent do you agree or disagree with these statements about reputational risk(Single code per row question)Top 2 Box:Strongly agree+Agree Total(600)Media(200)Technology(200)Telecoms(200)Figure 16:Reputational risk factors8470685

149、15545262786966544844223806967544751284816967535047253My business struggles to quantify reputational riskReputation is critical to my companys ability to make moneyReputational risk is more dificult to manage than other risksBusinesses in my sector are more exposedto reputational risk than those in o

150、ther sectorsSocial media has increased the potential forreputational risk to affect my businessUltimate responsibility for reputational riskshould lie with the CEO/MDMy business uses quality reputational risk adviceMy business monitors and measures reputation0%10%20%30%40%50%60%70%80%90%100%26/Globa

151、l Technology,Media and Telecoms Risk Report 2024Comment:Climate riskManaging the physical and transition risks of climate changeAlthough the TMT sectors are heavily dependent on AI and other energy-intensive technologies,there are reasons to be optimistic that this can be managed within climate targ

152、ets.As the technologies advance,they will become more efficient.More of the power required will come from renewables and other low carbon sources such as nuclear Microsoft and Amazon have both made investments in developing small scale nuclear plants for this purpose.The bigger climate-related risk

153、for TMT may be physical from natural catastrophes such as storms,flood and fire in areas where data centers,manufacturing plants and critical suppliers are located.As these events become more frequent and wider in their range,there is a growing need to understand the potential impact on operations,c

154、ash flows and business continuity.For example,if you have several data centers clustered in one area,how would you recover if they were all affected by the same event?Longer term changes such as increasing heat stress could impact on critical infrastructure,equipment,supply chains and raw materials

155、over time,potentially causing significant business interruption.To develop greater resilience and optimize their insurance cover,TMT firms should look to:Identify:understand the types of risks you face in which locations.WTWs Global Peril Diagnostic can help you assess hazards,while Climate Diagnost

156、ic can predict the longer-term impact of chronic changes such as heat stress and sea level rise.Quantify:use modeling methodologies that can quantify the impact of different scenario events on business continuity and cash flows.Manage:build on the learnings to increase resilience,for example by rein

157、forcing or relocating data centers.Accurate modeling and hazard data can help you present better information to insurers and improve your terms and cover.Global Technology,Media and Telecoms Risk Report 2024/27WTW offers a range of insurance and consultancy solutions that can support you through thi

158、s process,helping you quantify,model,mitigate and transfer your risk,while protecting your reputation.ConclusionOvercoming the risks of rapid changeThe technology media and telecoms sectors are at the forefront of the most fundamental changes happening in the 21st century,from digitalization and con

159、nectivity to the advance of generative AI.These transformative innovations bring enormous potential but also possible harm,not only for society at large but also for businesses within the industry,putting business models,cyber security defenses and reputations in jeopardy.This inherent tension was e

160、vident in our survey where innovations such as AI and 5G featured at the top of both greatest opportunities and biggest risks.Meanwhile governments are adding to TMT headaches with increasing regulation around issues such as data privacy and ownership.How TMT companies and their employees approach n

161、ew technologies will be critical to how quickly and safely change can be adopted.To make a successful transition and strengthen your resilience,its a good idea to reassess the critical issues specific to your business.Review where you need to focus.What are the key risks involved,how can you manage

162、them and where might you need more protection?Study detailNote:Totals may not add up to 100%due to rounding28/Global Technology,Media and Telecoms Risk Report 20246250 49914500 999301,000 4,999205,000 9,9993010,000+0%10%20%30%Number of employeesCountryNorth America(200)33%33%17%17%EMEA(200)APAC(100)

163、LATAM(100)0%5%10%15%20%25%1821251720$10 billion+$5 billion to$10 billion$1 billion to$5 billion$500 million to$1 billion$250 million to$500 millionCompany annual revenueMultiple locationsYes80.5%19.5%NoOur survey was carried out by our partner Coleman Parkes Research in May 2024,using a mixture of p

164、hone interviews and web-based survey forms.We received 600 responses from senior decision makers within TMT businesses based in Europe,the U.S.,Asia-Pacific and Latin America.Survey sample and methodologyMethodologyPhone to web survey and onlineAudience profileDecision makers and influencers in TMT

165、companies,with more than 250 employees,and more than 250 million revenue Sample size600 total:North America(200)EMEA(200)LATAM(100)APAC(100)Fieldwork dates3-31 May 20240%2%4%6%8%10%12%121099987777763OwnerCEOHead of marketingHead of riskHead of corporate commsFinance directorChief risk oficer(CRO)Chi

166、ef human resource oficerCompliance managerOperations managerChief marketing oficer(CMO)Head of HRChief financial oficer(CFO)Note:Totals may not add up to 100%due to roundingJob responsibilityPart of the decision making team37%51%12%Lead decision makerKey influencerJob title Global Technology,Media a

167、nd Telecoms Risk Report 2024/2930/Global Technology,Media and Telecoms Risk Report 2024Further informationFor more information please contact:AsiaBen MacCarthy Head of Casualty Asia+852 2195 5885 Lay-See Ong Divisional Director+65 8611 6313 CEEMEAThomas Haddrill Head of Broking,CEEMEA+44 20 3124 803

168、9 EuropeFrdric Lucas TMT Industry Leader,Western Europe+33 1 41 43 61 07 Kiran Nayee Head of Casualty for Europe+44 7770 971345 Victor De Jager Head of Property for Europe+31 6 2111 6250 GBMatt Grimwade Client Relationship Director Direct and Facultative+44(0)7584 277447 Karl Sawyer TMT Industry Lea

169、der,GB+44 7769 247799 Jo Holliday Global Head of Crisis Management Crisis Management+44 20 7088 9110 Patrick Rogers Head of Risk Advisory;Alert:24 Crisis Management+44(0)7990 406133 patrick.rogersalert-North AmericaGeorge Haitsch TMT Industry Leader,North America+1 917-213-2808 Joe Hurley TMT West C

170、oast Leader+1 415-955-0214 Jody Yee TMT East Coast Leader+1 856-633-6625 PacificBen Di Marco Cyber and Technology Risk Specialist+61 478 312 988 Trent Williams Head of Broking,Australasia+61 423 598 493 South AmericaJos Mercado TMT Industry Leader,LatAm+1 305-373-8765 Roman Mesuraca Regional Head of

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