A new report from re/insurance broker Willis Towers Watson (WTW) has highlighted how emerging technologies are rapidly altering the risk reality for companies across most industries in the wake of the COVID-19 pandemic.
The report, which explores how the pandemic has impact the risk landscape for the Technology Media and Telecoms (TMT) sector, noted that technology and digitalisation requirements have become increasingly essential to the corporate nervous system.
These trends were of course already considered key issues even before the outbreak of COVID, but the crisis has been a catalyst for organisations to start preparing for risks on the horizon, WTW says.
Among the key findings of the report was the idea that the acceleration of technological change is driving companies to continuously innovate in order to transform their business and differentiate themselves from their competitors.
Additionally, geopolitical uncertainty and ESG considerations are seen to be impacting capital and strategic decisions like never before, while the move to remote working could permanently alter the way that firms in the TMT sector operate.
And while there has been a massive and accelerated investment in technologies and new ways of working over the past 18 months, firms must now contend with a global talent and skills race with an increased focus on IT skills critical to future growth.
“The future risk horizon highlights the need for organizations to re-examine operations to determine what worked and what didn’t during the height of the Covid-19 crisis,” said Sara Benolken, TMT Global Industry Practice Leader at WTW.
“Although the idea of resilience has been kicked around corporate offices for years, the virus has added a greater sense of urgency. We therefore expect to see new efforts by TMT companies, that are also leaders in their field, to continue to build further and genuine resilience into business strategies and operations in 2021 and beyond.”
Adam Garrard, Global Head of CRB at WTW, also commented: “Clients in the technology, media and telecoms sector have been impacted by the changing business environment as a result of Covid-19. While some companies have struggled with the rapid acceleration of technological change, many have embraced innovation and successfully maintained and grown their business despite the challenges faced.”