Risks from digitalisation and new technology are among five “megatrends” affecting the construction sector, according to Willis Towers Watson.

The other four are geopolitical instability and regulatory change; workforce management and talent optimisation; business model and strategy challenges; and complex operating models in a global business landscape.

“It is clear the level of understanding about cyber-related risk is not as high as it needs to be,” Willis Towers Watson Cyber Risk Team Risk Management Executive Dean Chapman said.

“The industry is vulnerable, not just in relation to the loss of data, but also at the design and technology stage, thanks to an increase in the use of technology – and the results could be catastrophic.”

Technology is playing an increasingly important role in the sector, especially in areas such as safety, design and efficiency, and as dependence on digitalisation grows, so do cyber risks.

Australasia Industry Leader Major Projects Construction Jon Hetherington told insuranceNEWS.com.au cyber risks must be “fully assessed in terms of potential impact to the business and the treatment options available including insurance. It is still not fully quantified.”

The Willis Towers Watson Construction Risk Index surveyed 350 executives worldwide, including from Australia.

It says technology will be mission-critical for the construction sector by 2020.

“As dependence on technology grows, new threats will evolve, and many respondents feel that technological advancements will bring new risks over the next 10 years.

“Integrating technology in to the business will therefore require enhanced cyber security and a new approach to risk management.”