In addition to unlocking huge potential, the introduction of 5G will present significant new risks, which means that the risk profile of companies using or providing 5G goods and services will change. Businesses will have to adapt to an ongoing technological revolution that presents many unknowns. Unforeseen consequences, real or perceived, pose a risk — as seen in January 2022, when concerns about the effects of 5G technology on aviation systems crippled airlines in the US, or in April 2020, when conspiracy theorists in the UK vandalized phone towers in the US. United. The misconception that they are linked to the Covid-19 outbreak.
Unlike previous generations, 5G will be a software-knowledge and “virtualized” network, meaning that many functions that previously depended on hardware will now be virtualized software capabilities, with software-related security issues. As the amount of interconnected mobile devices, networks, services, and data increases, so will the potential attack surface.
The interconnected nature of 5G, with its infrastructure, service providers and users, also increases the issue of supply chain security and business interruption losses if something goes wrong.
“Large dependencies in the overall concept, from the companies that provide the technological solutions that support 5G technology to those who buy and use it, is the crucial issue here,” Says Oliver Lauxmann, Group Head of Global Practice, Principal Underwriting Office – Responsibility, at AGCS. “One of the most important features of 5G, with its speed and low latency, is that it delivers solutions in real time, 24/7. So if there is any disruption in the chain, it could have a direct impact on the next operations, not just for a specific customer, but Possibly on a regional or even global level.
These solutions can be deployed in mission-critical systems within first response, transportation, healthcare, and energy services, where reduced response time or interference can have near-immediate effects, with catastrophic consequences.