If your company operates in the media sector, it’s crucial to be aware of the risk in media and entertainment industry in order to avoid falling victim to lawsuits. Entertainment industry risks can range from liability issues, developing new technologies that threaten your business model and more. Here are the most common ones to remain aware of.
Liability Issues Include Intellectual Property, Third-Party Risks and More
Perhaps the most pervasive risk type in the media industry has to do with various liability issues. Your company may be liable for numerous types of actions, from data protection to executive decisions and more. The most frequent liability issues in the industry usually encompass:
- Cyber liability
- Data liability
- Third-party liability
- Directors and officers liability
- Talent risk
Up-and-Coming Business Models That Threaten the Current Status Quo
A less legalistic but no less omnipresent threat in the industry is the rise of up-and-coming new business models that can threaten current businesses. Your company should keep a close eye on industry trends to avoid getting left behind. This risk type may include:
- New entertainment models that threaten current operations
- Technological advances that are becoming widely adopted in the industry
- New marketing techniques that are proving popular
The various types of risk in media and entertainment industry may leave your company vulnerable to lawsuits if proper precautions are not taken. Review these common risks to help your business prepare for, and avoid, the most frequent types of claims.