Asia: Business interruption is the top risk for technology sector
Source: Middle East Insurance Review | Oct 2023
The risk of contingent business interruption has overtaken the risk of cyber security as the top risk for technology sector in Asia according to a new survey conducted by global (re)insurance broker Marsh.
The latest edition of the Global Technology Industry Risk Study 2023 – Asia Perspectives revealed that ongoing supply chain volatility that leads to income loss for businesses, surged to the top spot. It was at the seventh place in the 2022 edition of the survey.
The second slot is occupied by supply chain disruption, which was not even in the top 10 in 2022. It is followed by reputation risk, product recall and intellectual property risk.
The report said that increased frequency and severity of extreme climate events are adding to the substantial losses that technology companies face, stemming from damage to physical assets and power instability. The current unstable geopolitical situation has also led to a shortage in critical raw materials such as rare earth metals. Reputational risk also poses greater threats.
The report said despite the challenges presented by the current economic conditions, the region is still facing a talent war as only 17% of technology companies are considering a reduction in their workforce compared to the 46% for companies globally. According to the report, Asia is more dependent on a highly skilled workforce.
The study found that the risk of data security and privacy is now at 10th position, while digital business interruption risk fell from third position in 2022 to ninth position in the current edition.
Asia was the target of over 31% of global cyberattacks in 2022, making it the most targeted region worldwide. M