Business interruption remained the top fear globally for the fifth straight year, with multiple new triggers emerging, including non-physical damage disruptions caused by political violence, strikes and terror attacks.
Allianz Global Corporate & Specialty SE (AGCS) has published its 6th annual Allianz Risk Barometer, which provides a list of the current top ten global business risks.
Political risks and violence (including terrorism) was the top ten risk which saw the most change, with a 3 percent increase in organizations saying that this is a current top risk.
Market developments and volatility were seen as the second biggest risk by businesses across the world. Industries such as aviation and defense / defence, financial services, marine and shipping and transportation saw this as the biggest risk of the year as did companies in Africa and the Middle East region.
”Companies worldwide are bracing for a year of uncertainty,” says Chris Fischer Hirs, the CEO of AGCS. ”Unpredictable changes in the legal, geopolitical and market environment around the world are constant items on the agenda of risk managers and the top management. A range of new risks are emerging beyond the perennial perils of fire and natural catastrophes which require re-thinking of current monitoring and risk management tools.”
The top ten global business risks according to the Allianz Risk Barometer are:
- Business interruption: 37 percent of organizations list this as a top risk – down from 38 percent last year
- Market developments: 31 percent (34 percent last year)
- Cyber incidents: 30 percent (28 percent last year)
- Natural catastrophes: 24 percent (24 percent last year)
- Changes in legislation and regulation: 24 percent (24 percent last year)
- Macroeconomic developments: 22 percent (22 percent last year)
- Fire, explosion: 16 percent (16 percent last year)
- Political risks and violence: 14 percent (11 percent last year)
- Loss of reputation or brand value: 13 percent (18 percent last year)
- New technologies: 12 percent (10 percent last year).