Cyber incidents and business interruptions rank as the biggest company concerns for the second year in succession (both with 34% of all responses), according to new research from Allianz Global Corporate & Specialty (AGCS). However, macroeconomic developments such as inflation, financial market volatility and a looming recession as well as the impact of the energy crisis are the top risers in this year’s list of global business risks.
“For the second year in a row, the Allianz Risk Baromter shows that companies are most concerned about mounting cyber risks and business interruption. At the same time, they see inflation, an impending recession and the energy crisis as immediate threats to their business. Companies – in Europe and in the U.S. in particular – worry about the current ‘permacrisis’ resulting from the consequences of the pandemic and the economic and political impact from ongoing war in Ukraine. It’s a stress test for every company’s resilience,” says AGCS’ CEO Joachim Mueller.
“The positive news is that as an insurer, we see continuous improvement in this area among many of our clients, particularly around making supply chains more failure-proof, improving business continuity planning and strengthening cyber controls. Taking action to build resilience and de-risk is now front and center for companies, given the events of recent years,” Mueller adds.
- Natural catastrophes and climate change dropped in the annual rankings, yet political risks and violence are new to the list.
- Shortage of skilled workforce rose to No. 8, while changes in legislations and regulation remain at No. 5.
- Cyber incidents such as IT outages, ransomware attacks or data breaches, rank as the most important risk globally for the second year in succession.
- Cyber is the cause of business interruption companies fear most (45% of responses); the second most important cause is the energy crisis (35%), followed by natural catastrophes (31%).