What's next?

Having faced a multitude of risks over the past two years, 66% of tech companies have already changed or plan to change their approach to risk. But that means one-third of companies still may not know where to start. The top four ways tech companies address their risk response approach can serve as a good starting point for those who may feel lost:

Strengthen regulatory compliance measures: Identify all applicable laws and regulations that affect your business. Regularly assess your company's compliance measures through internal audits, and update protocols to keep pace with changing laws, regulations and industry standards.
Implement risk monitoring systems: One of the first steps you can take to protect your business is to implement risk monitoring systems. New technologies like AI can provide companies with time and cost-efficient tools that will help monitor new risks in real-time.
New or higher insurance limit policies: Accidents happen — insurance is there for you just in case. From cyber/tech E&O to D&O, insurance policies can save your company from going under. Our report found that close to a third of tech companies don't believe their insurance policies would fully (or even partially) cover them in a breach. This lack of confidence in cyber insurance proves the need for improved insurance safety nets across all types of risk.
Improve crisis management protocols to respond to unexpected events: If there's anything learned in life, it's that anything can happen. Take CrowdStrike for example: businesses across the world faced business interruption and didn't have protocols in place to keep their company afloat after being affected by the outage. Crisis management protocols for your business to consider can include communication strategies, backup systems and steps to quickly restore operations.

Risks are inevitable for tech companies. As they continue to evolve, it's important for organizations to stay ahead of the risk management game. Tech companies' risks aren't just going to go away, especially when it comes to people. And while things may seem down right now for tech companies, there are some great opportunities ahead. Looking forward, promising financial performance, the Fed's recent decision to cut interest rates, and increased sales and revenue are three ways that may be able to take a little pressure off of hiring and retention rates.

Special Reports /

InsurTech priorities for 2024 and beyond

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