The top risks and major risers in this year’s annual business risk survey reflect the big issues facing companies around the world right now – digitalization, climate change and an uncertain geopolitical environment. Many of these risks are already hitting home, with extreme weather, ransomware attacks and regional conflicts expected to test the resilience of supply chains and business models further.
Cyber, business interruption and natural catastrophes: the top risks for businesses in 2024
Cyber incidents, such as ransomware attacks, data breaches and IT disruptions, and the closely interlinked peril of business interruption in a fast changing world rank as the business risks of most concern for companies around the globe, according to the Allianz Risk Barometer.
The more traditional threats posed by natural catastrophes and fire and explosion climb back up the rankings too. Given ongoing conflicts around the world and the potential for polarization, disinformation and unrest in a record-breaking year for elections, political risks and violence is also on the rise. At the same time, those issues that have become more prominent in recent years, such as the energy crisis, pandemic outbreak, and economic risks, fall down the list of business concerns as some Covid-19-related issues have abated, although challenges still loom.
What are the top ten business risks globally?
The 13th Allianz Risk Barometer incorporates the views of 3,069 respondents from 92 countries and territories. The annual corporate risk survey was conducted among Allianz customers (businesses around the globe), brokers and industry trade organizations. It also surveyed risk consultants, underwriters, senior managers, claims experts, as well as other risk management professionals in the corporate insurance segment of Allianz Commercial and other Allianz entities.
Respondents were questioned during October and November 2023. The survey focused on large, smaller and mid-size companies. Respondents were asked to select the industry about which they were particularly knowledgeable and to name up to three risks they believed to be most important.
Most answers were for large-size companies (>US$500mn annual revenue) [1,340 respondents, 44%]. Mid-size companies ($100mn+ to $500mn revenue) contributed 792 respondents (26%), while smaller enterprises (<$100mn revenue) produced 937 respondents (30%). Risk experts from 24 industry sectors were featured.
Ranking changes in the Allianz Risk Barometer are determined by positions year-on-year, not percentages. All currencies listed in the report are in US$ unless state. Soruce: Allianz