Cybersecurity and regulation identified as top risks for the TMT sector: WTW

Cyber and data privacy have emerged as the top risks in the technology, media, and telecom (TMT) sectors, which are increasingly relying on innovations like artificial intelligence (AI) to drive growth, according to a recent report by WTW.

The report highlights growing concerns about the impact of regulations and trade tensions on the future of the global TMT industry.

Innovation was identified as a key priority for 67% of respondents over the next two years, driven by fears of falling behind competitors or agile startups. AI and machine learning (ML) are viewed as significant growth opportunities.

As a result, concerns over cyber threats have intensified. Cybersecurity was ranked as the top risk to business success across all three sectors, with 51% of media and telecom companies and 46% of technology firms identifying it as a major risk. Ransomware attacks were highlighted as the most prominent cyber threat, mentioned by 62% of respondents.

Additionally, 55% of respondents cited government regulations as the biggest obstacle to achieving strategic goals, as governments enforce stricter rules around ownership structures and dominant market positions for critical technology and infrastructure.

74% of respondents indicated that trade disputes are among their greatest geopolitical concerns, as firms face increasing restrictions and tariffs related to the disengagement between China and the West.

Half of the respondents (54% in media) ranked climate change among their top concerns, reflecting rising awareness of the environmental impact of new technologies. This includes energy-intensive AI models like ChatGPT, which require more power than traditional computing.

Matt Grimwade, Client Relationship Director, Direct & Facultative at WTW, stated, “Technology businesses are clearly riding a wave of unprecedented opportunity and demand, harnessing the vast potential that technologies can bring. As well as new risks, this rapid expansion and growing economic importance is bringing increased scrutiny. Restrictive policies covering ownership, market dominance, data, AI and 5G, are being enacted across all of the world’s main trading blocks. TMT businesses need to navigate this changing landscape carefully and reassess their risks and risk management strategies to meet future challenges.”

George Haitsch, TMT Industry Leader, North America, added, “Technological advancements in TMT have a two-sided nature. As new opportunities arise, they inevitably bring new risks. As a sector, it is imperative that we evolve in alignment with these developments. 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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