Data, AI and cybersecurity become growth enablers
CEOs and management teams often struggle to define their data, AI and cybersecurity strategies and value creation plan. Meanwhile momentum for cloud-native initiatives continues to accelerate. This is taking the C-suite into ‘uncharted territory’, where appropriate guard rails, governance and operating models may not yet be in place.
Data, AI and cybersecurity are now pervasive in the new digital business models. Deep expertise remains a challenging knowledge area for many C-suite leaders. Impact:
- Risk of misaligned business and technology priorities increases
- Investment funding may become misguided, placing new digital sporting business models at risk.
Emerging digital vulnerabilities
Cyber threats appear in various forms, including attacks on spectator experiences, ticketing systems, and online scams aimed at stealing sports fan data and financial information. Plus, the evolution of smart venues, characterised by interconnected networks and devices, has exposed stadium infrastructure to new vulnerabilities.
This emerging digital vulnerability is not just about the theft of sensitive data but extends to financial fraud, manipulation of competition outcomes, and even the safety of players and fans in stadiums through disruptions of physical, connected stadium infrastructure.
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Redefining technology adoption and risk reduction
The sports value chain continues to be impacted by fragmentation, changing consumer habits, and declining TV viewership. In response, PE investment is a mechanism to accelerate new technology adoption to deliver unique, compelling digital fan engagements.
Big tech platform actors such as Apple, Netflix, and Amazon are reshaping the sports rights market. Private equity investments provide capital and expertise to shape new business models in the emerging, dynamically shifting sports ecosystem.
There is growing alarm at the increasing data breach risk, from AI-powered cybercriminals, at PE backed sporting organisations.
Data breaches have the potential to destroy trust, brand awareness and erode digital revenues for sports properties, which potentially erodes investor returns and damages the portfolio book of business for corporate financing banks. This is no longer a reactive, compliance-focused ‘cost game’.
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Data and cybersecurity due diligence for PE firms
We offer advisory services to leading PE firms to deliver proactive approaches to data, AI and cybersecurity due diligence prior to investing. PE firms are increasingly seeking expertise to accelerate maturity assessments for pre-deal analysis, to identify critical needs, provide a resolution path and better manage portfolio risk.
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Due diligence services to mitigate risk in media rights deals
Sports digital broadcasters must consider a range of commercial, technology, cybersecurity, data, content integrity and brand risks that could impact their operations and reputation in their sports commercial rights deals. Data-at-scale is pivotal to manage these risks and must be protected through risk-based, AI-augmented cybersecurity best practice.
Our advisory services supports leading sports broadcasters in addressing their multifaceted risk factors during their commercial rights negotiations. Media broadcasters are increasingly seeking data, AI and network cybersecurity due diligence expertise to identify critical risks, provide a resolution path and better manage their critical risks.
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Data, AI and Cybersecurity exposures can negatively impact sponsorship deal valuations
Sports Sponsors and agencies are continuing to invest heavily in premium sporting franchises at prestigious national or global sporting events. There is growing focus on the need to consider data, AI and cybersecurity due diligence related risks during the sponsorship negotiation process.
Risk considerations include data breaches, phishing attacks, ransomware attacks, increasing exposures to supply chain attacks, sponsor brand reputational damage associated with a data breach at the sponsored franchise, and social engineering attacks.
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TIAKI due diligence services
We offer advisory services to sports sponsors and agencies in assessing their data, AI and network cybersecurity risks during their commercial sponsorship negotiations.Â
Due diligence output provides guidance to sponsor decision makers in identifying critical risks and providing risk mitigation across their commercial, technology, cybersecurity, and brand risks.
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Our advisory services provides guidance to managing overall risk and revenue opportunities for sports sponsors and agencies.
Data driven, risk-based approaches to defining insurance premiums
We bring unique insights to help providers differentiate their offerings in global sports:
- Comprehensive Risk Assessments: towards sports property clients to understand their specific cybersecurity needs and vulnerabilities.
- Customised Insurance Policies: to address the unique cybersecurity risks. This includes coverage for data breaches, ransomware attacks, and other cyber threats specific to the sporting franchise or sponsor or governing body.
- Proactive Risk Management Services: to prevent cyberattacks and mitigate potential losses. This could include cybersecurity training, vulnerability assessments, and incident response planning.
- Staying up-to-Date on Industry Trends:Â access to threat intelligence and market dynamics commentary impacting the sports landscape, to better anticipate potential risks and adjust insurance offerings accordingly.
- Monitor and Assess Claims Data: to identify trends and cyberattack patterns impacting sports industry clients, so that insurance offerings and annuity risk management can be improved.
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High profile targets for AI-powered cybercriminals
Sports governing bodies such as FIFA, UEFA, World Rugby, International Cricket Council (ICC) and World Anti-Doping Agency (WADA) have all suffered serious cyberattacks in recent years, which risks reputation damage, loss of trust and potential impact on future revenue streams.
The cybercriminals will continue to seek to disrupt high profile sports events with global audiences for opportunistic financial gain, particularly as private equity investments and large media rights deals are forecast to continue in all major sports.
Likely attack vectors towards Sports Governing Bodies and their specific sporting code ecosystems include data breaches, ransomware attacks, insider threats (intentional and unintentional compromises), phishing attacks and distributed denial of service (DDoS) attacks.
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