The risk landscape of the technology, media and telecom (TMT) industry continues to evolve. Major drivers include rapid innovation and the increased proliferation of technology, including digitalization of products and services, industrial and mobile technology solutions, demand for connectivity and content, industry competition with new entrants disrupting traditional business models and the expansion of connected infrastructure enabling virtual and digital transformation.
Due to these challenging crosswinds, the industry finds itself in an increasingly complicated regulatory and geopolitical environment further roiled by the impact and long-term implications of a global pandemic. And let’s not forget a global talent and skills shortage that threatens to inhibit efforts to shape and manage a successful, profitable enterprise.
In an effort to assist our clients’ understanding of the full business and risk landscape, Willis Towers Watson prepared this 2021 Technology, Media and Telecommunications Futures Report.The report grew out of a 2020 - 2021 research project undertaken by Willis Towers Watson with the Mack Institute’s Collaborative Innovation Program (CIP) at the Wharton School, University of Pennsylvania.
We set out to examine changes to the risk landscape that have surfaced over the past five years, as well as to identify emerging risks that the industry should expect over the next several years, with a particular focus on climate change implications. We share ideas that will help executives and their Board of Directors move beyond a “risk list” into a more holistic risk management view that better addresses the interaction of new and emerging risks and trends.
This opinion-based report uses both internal and external expertise with insights from key executives in the TMT and broader risk management space. Five risk megatrends identified in earlier Willis Towers Watson research formed an overall framework: The global talent and skills race; operational complexity and vulnerability; regulation and legal risks; digitalization and technological advances; and business model and strategy pressures. The project was conducted along the following lines:
After conducting extensive internal and external research into new and developing risks, we tested our findings and preliminary assumptions in a series of interviews with executives in each TMT business segment. (The opinions of these executives are reflected in the content of this research).
We then formed a perspective on the new trends and emerging risks, outlining the potential impact on business models, strategies and operations. Our perspective includes some views about how the insurance industry is responding to the new risk environment.
When feasible, we developed scenarios and a selection of insights to support our commentary and to illustrate potential disruptions to business from the identified trends and risks.
In this report, the chapter for each of the five megatrends begins with a summary and highlights the interconnections amongst other sections, allowing you to navigate through the report as your understanding builds on the changes across the sectors.
Willis Towers Watson believes the need to adapt a comprehensive, forward-looking risk management approach has become more important than ever. We hope a healthy debate will ensue from this compelling report.
