Top 10 Risks for Technology Firms
A fluid technology environment is the biggest source of risk for technology and communications firms, a new report from Aon Risk Solutions finds.
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The 2011 Technology and Communications U.S. Industry Report found that the constant change in the development and use of technology is posing the greater risk to firms.
“Technology is driving the growth and success of businesses, but asset protection and awareness of the greatest risks for companies will ensure continued achievement,” says Kevin Kalinich, co-national managing director of the Financial Services Group at Aon Risk Solutions. “Cyber crime, which includes security and privacy breaches, continues to be a significant threat to companies across all industries.”
The economic slowdown and increasing competition comes in second on the list, reaffirming that companies are still concerned about economic recovery and feeling pressure to obtain and retain business. The failure to innovate and meet customer needs jumped to the number three risk this year after charting in last year’s survey.
The rest of the list is as follows:
• Business interruption
• 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
• Cyber crime
“Organizations must consider the potential impact of all viable risk events and be prepared for the next catastrophe before it strikes,” says Shawn Ram, managing director of the Technology Practice for Aon Risk Solutions. “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.”
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