Aon annual study finds business interruption and cyber crime in the top 10 concerns of technology and communications organizations
Constant change in the development and use of technology is posing greater risk while offering increased opportunity to technology and communications companies, finds the 2011
Technology and CommunicationsU.S. Industry Report of
Aon Risk Solutions, the global
risk managementbusiness of
AonCorporation (NYSE: AON). The economic slowdown and increasing competition top the list, reaffirming that companies are still concerned about
economic recoveryand feeling pressure to obtain and retain business. The failure to innovate and meet customer needs jumped from number eight in the 2010 Technology and Communications report to the number three risk this year.
Rounding out the Top 10 list of risks for technology and communications organizations identified by Aon's report are:
- Regulatory and legislative changes
- Loss of intellectual property and data
- Failure to attract or retain top talent
- Damage to reputation and brand
- Exchange rate fluctuation
"With the rate of change seen in the
technology and communicationsindustry, it is now more important than ever for companies to recognize and plan for these
top risks," said Shawn Ram, managing director of the Technology Practice for Aon Risk Solutions. "Organizations must consider the potential impact of all viable risk events and be prepared for the next catastrophe before it strikes. Failure to do so could have serious consequences. Bringing together the functions of IT, legal, finance, HR and risk management provides a valuable multi-disciplined approach to
managing risk."
In light of the
tsunami and earthquakes that hit Japan, the potential impact of supply chain disruption proves very timely as a key finding from Aon's report. Technology and communications companies need to prepare for business interruption, as the threat is significant and will affect business operations quickly.
According to a
recent report from Gartner, the volume of electronically stored data is growing exponentially and expected to increase by 300 times by 2020. This will further complicate corporate network security and the risk of privacy breach, which will pose an even greater risk to businesses in the coming year.
"Cyber crime, which includes security and privacy breaches, continues to be a
significant threatto companies across all industries," said Kevin Kalinich, co-national managing director of the Financial Services Group at Aon Risk Solutions. "Technology is driving the growth and success of businesses, but asset protection and awareness of the greatest risks for companies will ensure continued achievement."
A healthy level of confidence in the
technology and communicationssector is being further manifested through growth in mergers and acquisitions, IPO and venture capital activity. With this increase, organizations need to consistently evaluate their risk profiles and adjust their risk management programs accordingly.
