Companies must continuously innovate to stay ahead of the curve and manage risks effectively.”Sara Benolken
Willis Towers Watson TMT Global Industry Practice Leader
The technology, media and telecom (TMT) industry has faced an extraordinary range of risk and uncertainty in recent years. Risks surfacing from tectonic shifts in technology have been compounded by rising geopolitical tensions, regulatory complexity and a never-ending talent shortage. And of course, inevitably, COVID-19.
In an effort to assist our clients’ understanding of the full business and risk landscape, Willis Towers Watson prepared this 2021 Technology, Media and Telecommunications Futures Report. The report grew out of a 2020 – 2021 research project collaboration with the Mack Institute’s Collaborative Innovation Program (CIP) at the Wharton School, University of Pennsylvania.
We set out to examine changes to the risk landscape that have surfaced over the past five years, as well as to identify emerging industry risks. In this report, we share ideas to help executives and their Board of Directors move beyond a “risk list” into a more holistic risk management approach to better address emerging risks and capitalize on opportunities.
This report includes observations, insights and recommendations from key executives in the TMT and broader risk management space. We identified five risk megatrends that form the overall framework.
Insights from TMT executives and tips on how to best view the report
This report grew out of a 2020 - 2021 research project undertaken by Willis Towers Watson with the Mack Institute’s Collaborative Innovation Program (CIP) at the Wharton School, University of Pennsylvania.
A message from Sara Benolken, Willis Towers Watson Global TMT Industry Leader on digital transformation and dramatic changes to the risk environment
TMT business models and strategies have been forced in recent years to accomodate sudden shifts in the macro business environment.
Talent shortages add to other exposures, notably from the efforts by TMT companies to make digitalization and technological advances to remain competitive.
TMT executives sense that changes are intensifying with the growth of AI, 5G, IoT amongst other innovations.
Without common global frameworks, keeping up with varying data protection and privacy laws is likely to remain a challenge.
The pandemic's impact on business operations and buyer behavior has exposed new organizational shortcomings and aggravated old ones.
With a shift in market conditions combined with rapid change in the risk environment, it is important to understand how insurance carriers have pivoted and find strategies to mitigate surprises.
TMT risk management has been put to a stress test in recent years with a combination of events, including digital transformation, rising trade tensions and the global pandemic. Results are mixed.
A risk framework that includes data-driven risk modeling and an explicit view of risk tolerance can empower decision making for the short and long term.