Top risks, causes of loss in TMT sector

Staff reporter
In an era where the technology, media and telecommunications (TMT) sector is rapidly evolving and shaping our world, understanding the key risks and growth drivers is crucial.
According to this year’s Allianz Risk Barometer, few industries are moving faster than this sector.
Key growth drivers include the proliferation of 5G technology, which promises ultra-fast speeds, low latency and high capacity. This technology is expected to revolutionise healthcare through telemedicine, enhance manufacturing with smart factories, and transform entertainment with augmented reality (AR) and virtual reality (VR) experiences.
Artificial intelligence (AI) applications further boost efficiencies and create new products, while the metaverse introduces a burgeoning virtual economy.
Despite its promising future, the TMT sector faces significant risks, according to the risk barometer. Cyber incidents rank as the top risk, with 55% of respondents highlighting this concern. The large amounts of personal information held by TMT companies make them prime targets for cybercriminals.
Disruptive cyber-attacks, such as ransomware or pseudo ransomware, pose a substantial risk of service interruption and data loss. Business interruption, often a consequence of cyber incidents, is another major risk, significantly driving the rising severity of claims. Natural catastrophes, fires and equipment breakdowns also contribute to business interruptions.
Macroeconomic risks, including economic downturns, geopolitical tensions, and regulatory changes, can affect consumer spending, advertising budgets, and technology infrastructure investments.
However, these challenges also present opportunities for growth in digital transformation, cloud computing and streaming services. TMT companies can mitigate these risks by diversifying revenue streams, maintaining agility, and investing in scalable technologies.
According to the barometer, effective risk management in the TMT sector involves continuous monitoring of geopolitical issues, proper risk analysis and consulting with experts.
Furthermore, business continuity planning should be regularly reviewed and updated to ensure robust operational processes while cyber protection strategies must include regular data backups, segmentation, end-point detection, and multi-factor authentication.
Additionally, companies should stay updated on regulatory changes and privacy rights to protect their assets effectively.