Video gaming is no longer a casual pastime. It is a full-on spectator sport, creating many profit-generating revenue channels for organisers, competitors, platforms, and sponsors. The global esports market is expected to grow to as much as US$1.87 billion by 2025.
Growing industry brings significant risks
This continued growth presents opportunities for businesses and players, but also introduces new risks. Esports professionals need a robust risk management approach and a solid insurance program to protect venues from natural disasters, safeguard reputations, and address other evolving and emerging risks, including:
- Cyberattacks. The esports industry is particularly vulnerable to cybercrime and online risks. Player data security is a significant concern, while a hacking incident could affect both the integrity of the games and the broadcast. Threats, including ransomware, phishing, malware, and others can all have devastating financial and reputational consequences. Organisers should review their cybersecurity controls and make improvements to their cybersecurity posture and resilience in order to mitigate these risks.
Event and property risks. Any sporting or entertainment event with a sizable audience is subject to various risks, including bodily injury to spectators, property damage, active assailants, and terrorism. It is critical for organisers to undertake strategic risk assessments as an integral part of event planning and secure the necessary insurance coverage. - Brand and reputation risks. Esports brands typically develop partnerships and sponsorships to increase brand value. But inappropriate behaviour by participating athletes or other stakeholders, especially when amplified through social media, may result in the loss of sponsors or of tournament licenses, negatively impacting brand value. Engage in an exercise to identify potential risks to your reputation and quantify their cost. Then, create improvement mechanisms and share guidelines with athletes and partners to reduce these risks.
- Protecting players’ health. Esports athletes may spend up to 16 hours a day practicing. And with professional esports players performing as many as 400 actions per minute, movements like mouse clicks and keystrokes place a physical load on their fingers, wrist, neck, back, and lower arms. Coupled with incorrect posture and an inactive lifestyle, this can lead to significant health challenges.
There are also growing concerns about mental health. A study of university esports athletes found that certain stressors, including in-game pressure, can lead to significant mental health issues, including anxiety and depression. Among other efforts, consider personal accident and illness benefits, including mental health support, that are suitable for your people. - Protecting your esports investments
As esports continues to grow in both size and popularity, and new risks emerge, organisations should take steps to understand their key risks and identify ways to protect against them. This includes through arranging health coverages for esports athletes, putting in place the appropriate cybersecurity controls and necessary cyber coverage, and securing technology errors and omissions insurance.
To learn more about how to improve your esport business resilience, visit our esports page.
Protecting your esports investments
As esports continues to grow in both size and popularity, and new risks emerge, organisations should take steps to understand their key risks and identify ways to protect against them. This includes through arranging health coverages for esports athletes, putting in place the appropriate cybersecurity controls and necessary cyber coverage, and securing technology errors and omissions insurance.
To learn more about how to improve your esport business resilience, visit our esports page.
Sources:
marsh.com/cyber-resilience-twelve-key-controls-to-strengthen-your-security
britishesports.org/how-often-should-you-practise-info-and-guidelines