In the ever-evolving landscape of global business, staying ahead of potential risks is paramount for companies of all sizes. As we dive into 2024, the findings from the latest Allianz Risk Barometer shed light on the emerging trends shaping the risk landscape for businesses worldwide.
Cyber Incidents Take Centre Stage
Topping the list of worries for companies across the globe are cyber incidents, ranging from ransomware attacks to data breaches and IT disruptions. According to the Allianz Risk Barometer, cyber incidents have claimed the top spot for the third consecutive year, underscoring the critical importance of robust cybersecurity measures in today’s digital age.
The nature of cyber threats is evolving, with cybercriminals leveraging new technologies like generative artificial intelligence to orchestrate sophisticated attacks. The resurgence of ransomware attacks in 2023, coupled with a shortage of cybersecurity professionals, further amplifies the need for vigilance in safeguarding digital assets.
Business Interruption and Natural Catastrophes Remain Key Concerns
Following closely behind cyber incidents, business interruption retains its position as the second biggest threat in the 2024 survey. The interconnected nature of today’s global business environment highlights the importance of strong business continuity management practices and supply chain resilience.
Meanwhile, natural catastrophes have surged up the rankings to become the third biggest business risk, reflecting the record-breaking year of 2023 which was marked by extreme weather events and soaring insured losses. From wildfires in Greece to severe storms and flooding on the east coast of Australia, businesses globally are grappling with the impact of climate-related disasters on their operations and supply chains.
Bridging the Resilience Gap
While large corporations and smaller businesses share common risk concerns, the Allianz Risk Barometer highlights a widening resilience gap. Larger organisations, buoyed by heightened risk awareness post-pandemic, are actively investing in enhancing their resilience strategies. In contrast, smaller businesses often lack the resources and expertise to adequately prepare for a broader range of risk scenarios, prolonging their recovery efforts in the event of an unexpected incident.
Regional Variances and Emerging Risks
Regional differences also shape the risk landscape, with climate change emerging as a top concern in countries like Brazil, Greece, and Italy. The physical damage wrought by extreme weather events poses a significant threat to corporate assets, particularly in sectors like utilities, energy, and industry.
Additionally, political risks and violence have surged up the rankings amidst ongoing conflicts and geopolitical tensions worldwide. Societal polarisation, exacerbated by economic uncertainty and disinformation, is expected to fuel social unrest in many countries, posing challenges for businesses operating in volatile environments.
Looking Ahead
As we navigate the uncertainties of 2024, businesses must remain vigilant and proactive in addressing evolving risks. From bolstering cybersecurity defences to enhancing supply chain resilience and preparing for climate-related disasters, proactive risk management will be instrumental in safeguarding business continuity and fostering long-term growth.
Talk to a FIS Adviser for tailored insurance advice
The insights gleaned from the Allianz Risk Barometer serve as a valuable roadmap for businesses seeking to navigate the complexities of the modern risk landscape. Understanding how to mitigate these risks is the first step to being adequately prepared for the future.
Talk to one of our team for some trusted insurance advice designed to protect you and your business whatever the global risk climate.
About the Allianz Risk Barometer
The Allianz Risk Barometer is an annual business ranking compiled by Allianz Group’s corporate insurer Allianz Commercial, drawing on the insights of over 3,000 risk management professionals worldwide. Now in its 13th year, the Allianz Risk Barometer provides invaluable insights into the emerging risks and trends shaping the global business landscape.
The information provided in this article is of a general nature only and has been prepared without taking into account your individual objectives, financial situation or needs. If you require advice that is tailored to your specific business or individual circumstances, please contact Resilium Insurance Broking or one of our Authorised Representatives around Australia.
