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2024 Global Technology Industry Risk Study: The Velocity of Risk

Understand how the reset in the technology industry with global economic challenges is shifting perspectives on risk management in our latest edition of Marsh’s Global Technology Industry Risk Study. The Velocity of Risk delves into the escalating challenges that risk managers in the tech sector face amidst rapid technological advancements and shifting economic landscapes.

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25/06/2024 · 5 minute read

In an era where technology evolves at breakneck speed, The Velocity of Risk offers a crucial deep dive into the accelerating challenges and opportunities facing risk managers today.

With insights gathered from over 200 tech companies across 16 countries, this study is your compass in the storm of economic uncertainties, regulatory complexities, and the transformative impact of artificial intelligence (AI).

Highlights include:

Economic resilience

Discover how tech companies are adapting to economic challenges through strategic cost reduction, risk retention reevaluation, and workforce restructuring.

Out of the 24 total risks covered in this study, 8 are seen as highly concerning by over half of the tech companies surveyed.

Risk categories of greatest concern to businesses

82%

Technology risks

1. Data security and privacy: 74%
2. Digital business interruption: 57%
3. Technology errors and omissions: 53%
4. AI usage or oversight error: 52%
5. AI design failure: 52%

81%

Businesses risks

1. Reputational risk: 58%
2. Regulatory compliance: 58%
3. Employee retention: 51%
4. Intellectual property protection: 48%
5. Intellectual property infringement: 47%

63%

Physical risks

1. Employee safety: 50%
2. Business interruption from physical damage: 40%
3. Bodily injury or property damage to others: 39%
4. Environmental liability: 37%
5. Damage to owned property: 37%


Among these, data security and privacy, regulatory compliance, AI design failure and AI usage or oversight error stand out as the four risks that are both highly concerning today and likely to be growing concerns for most companies over the next few years.

Rising risk concerns

Learn about the escalating concerns over data security, privacy, and the evolving risks associated with AI development and adoption.

Rise of AI creates new risk concerns

As this complex constellation of organizations, risk stakeholders, and growth strategies continues to evolve — for instance, through the increasing usage of AI technologies — tech companies will continue to face an increasing velocity of risk.

How companies are investing in/leveraging AI

81% investing in or leveraging AI in one or more ways

*Note: 3% selecting "prefer not to say" not shown in chart
 

AI risk concerns among those using vs. not using AI
 

 

Strategic risk management

Gain insights into innovative risk management strategies being employed to navigate through economic pressures and insurance market challenges.

Conclusion

As the technology sector stands at a crossroads, seeking innovative solutions to navigate these turbulent times, this study arms you with the knowledge and foresight needed to turn challenges into opportunities for growth and resilience. Whether you're a CEO, risk manager, or tech enthusiast, the insights shared in this study are invaluable for fortifying your risk management strategies and building trust with key stakeholders.

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Global Technology Industry Risk Study 2024

Dive into the Global Technology Industry Risk Study 2024 today and equip yourself for the future of tech.

Download full report

Our people

Luke Costello

Luke Costello

Principal, FINPRO – Risk Management

  • Australia

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Hannah Morgans

Growth Leader, Cyber

  • Australia

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