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Aon Risk Solutions

2016 U.S. Technology and Communications Industry Report Highlights

What are the top 5 risks for technology companies?

Economic slowdown/ slow recovery

2

1

Failure to innovate/ meet customer

needs

Damage to reputation/brand

3

Increasing competition

4

Failure to attract or retain top

talent

5

What are the top 5 risks for communications companies?

Computer crime/hacking/viruses/malicious codes

2

1

Damage to reputation/brand

3

Increasing competition

Regulatory/legislative changes

4 5

Failure to attract or retain top

talent

B

Today’s global technology and communications companies are facing increasingly complex challenges.

The 2016 Technology and Communications Industry Report, based on a recently released survey by Aon, has shed insights on new risks facing the industries and highlighted the different views on how to best prioritize and respond to their unique needs.

A

Data Source: Aon’s 2015 Global Risk Management Survey

Cyber Insurance Buy

Cyber risk has jumped from number eight in Aon’s 2013 survey to number 5 this year. But, only 40% of surveyed companies have purchased cyber insurance, and 17% plan to purchase this coverage.

Data Source: Aon’s 2015 Global Risk Management Survey

Data represents respondents operating in more than one countryData Source: 2015 Global Risk Management Survey

A Majority of Respondents Use Two or More Methods for Identifying and Assessing Risk

Multinational Insurance Purchasing Habits

Half of the surveyed multinational companies control all of their global and local insurance programs at their corporate headquarters while 38% purchase some lines and leave local offices to handle the rest. General liability and property coverage is the most frequently purchased and D&O has experienced a dramatic increase.

Top Five Emerging Risks in 2018

4

Failure to attract or retain top

talent

3

Failure to innovate/ meet customer

needs

Computer crime/hacking/viruses/malicious codes

5

Increasing competition

1

2

Damage to reputation/brand

C

40%Insurance currently purchased

Corporate headquarters controls procurement of ALL insurance programs (global/local)

Corporate headquarters controls some lines and leaves local office to purchase other lines

No, each operation buys its own insurance with no co-ordination from corporate headquarters

50%

38%

13%

17%Plan to purchase

43%Not purchased and no plans

Assessment of Major Risks Technology &Communications

CategoryIdentification of Major Risks

45%Structured enterprise-wide risk identification process

37%Structured enterprise-wide risk assessment process supported by a standard toolkit and methodology

55%Risk information from other function-led processes (e.g.internal audit, disclosure, compliance, etc.)

33%Risk modeling / risk quantification analysis

4%Other

4%Other

67%Board and/or management discussion of risk during annual planning, risk assessment or other processes

49%Board and/or management discussion of risk during annual planning, risk assessment or other processes

55%Senior management judgment and experience

57%Senior management judgment and experience

Industry analysis, external reports

39%Consult with external service provider/advisor

33%

Risk. Reinsurance. Human Resources.

About Aon Aon plc (NYSE:AON) is a leading global provider of risk management, insurance brokerage andreinsurance brokerage, and human resources solutions and outsourcing services. Through its more than 72,000 colleagues worldwide, Aon unites to empower results for clients in over 120 countries via innovative risk and people solutions. For further information on our capabilities and to learn how we empower results for clients, please visit: http://aon.mediaroom.com.

© Aon plc 2016. All rights reserved.The information contained herein and the statements expressed are of a general nature and are not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information and use sources we consider reliable, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate profes-sional advice after a thorough examination of the particular situation.

For full insights from the survey, visit us at aon.com/2016techreport

ContactEric BoyumNational Practice Leader – Technology PracticeAon Risk Solutionseric.boyum@aon.com 1.303.639.4120