Risks emerging for this group of firms

A re-assessment of risk management approach is in order, says brokerage giant

Risks emerging for this group of firms

Risk Management News

By Terry Gangcuangco

Amid what has been coined as the ‘age of disruption’, a particular sector is said to be facing new risks associated with people, assets, and regulation.

Brokerage giant Marsh said communications, media, and technology (CMT) firms need to re-assess their risk management approach as the sharing, on-demand, or digital economy creates added risks for them. For instance, CMT firms are likely to be the first to experience new cyber threats given that they are early adopters of disruptive technologies.       

Other areas of concern include responsibility for workers’ actions, as companies see emerging categories of workers and work, as well as the regulatory implications for digital marketplaces and online platforms.

“The business models of CMT firms are disrupting traditional concepts of service delivery, content production, and manufacturing,” said Carrick Lambert, CMT practice leader for UK and Ireland at Marsh. “Globally, this is driving a shift towards the virtual, the online, and the intangible, to facilitate an ever easier flow of goods, people, capital, services, and ideas.”

Lambert stressed: “CMT firms should re-evaluate how they approach risk management – to better protect their assets, such as data, intellectual property, reputation, and people – as they embrace Economy 4.0.”

He said it’s crucial to understand and manage these new risks in order to build better engagement with workers and customers, enabling CMT firms to keep thriving.

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