FinTech Magazine February 2019 | Page 16

MARSH
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“ They need to invest heavily in R & D in order to find the most advanced technology to help them survive in the CMT industry ”

— Alexander Chao , Asia Communications , Media & Technology Practice Leader
The worries don ’ t end there : looking at the results for the 2019 CMT Risk Survey , Thomas Quigley , US Communications , Media & Technology Practice Leader , points out that the top three risks identified by Marsh ’ s clients are : data security and privacy ; technology errors and omissions ; and IT resiliency . “ This shows why it ’ s so important to do a study specifically for CMT companies ,” he explains . “ If you look across all industries , most respondents only talk about cyberattacks and data privacy . On the other hand , because CMT companies are technology providers , they have liability if their technology fails to perform . Whether it fails to ensure security or simply doesn ’ t work as designed , it ’ s a top liability risk .” Even if it is designed well and is secure , there are still many ways technology can disappoint . “ Maybe there ’ s an electronic interruption , maybe my backups didn ’ t work – there are several ways that technology can fail to work as intended ,” notes Quigley .
While some technology failures may seem minor , the ramifications of an
FEBRUARY 2019