The top ten global risks in the year ahead

25th March, 2019

Based on the response of more than 2,400 risk management experts from over 80 countries, Allianz have published their annual corporate risk survey revealing the top ten global risks facing businesses in the year ahead:

• Business interruption
  Caused by fire, explosion, climate change and increasing volatility of weather
  
  
• Cyber incidents
  Cyber crime, IT failure/outage, data breaches, fines and penalties
  
  
• Natural catastrophes
  Storm, flood, earthquake
  
  
• Changes in legislation and regulation
  Trade wars and tariffs, economic sanctions, protectionism, Brexit, Euro-zone disintegration
  
  
• Market developments
  Volatility, intensified competition/new entrants, M&A, market stagnation and fluctuation
  
  
• Fire, explosion
  
  
• New technologies
  Impact of increasing interconnectivity, nanotechnology, artificial intelligence, 3D printing, autonomous vehicles, blockchain
  
  
• Climate change/increasing volatility of weather
  
  
• Loss of reputation or brand value
  
  
• Shortage of skilled workforce

Globally, business interruption (BI) is the top threat for the seventh year running, with events such as IT breakdown, product recall, quality issues, terrorism, political violence and environmental pollution having a devastating effect on revenue.

Cyber incidents is second, with respondents ranking cyber attack as the business interruption trigger they fear the most, aptly demonstrated by the WannaCry and NotPetya malware attacks in 2017, which had devastating effects. It’s estimated that cyber crime now costs an estimated $600bn a year.

In the UK, changes in legislation and regulation share the top risk with cyber attacks. Given the uncertainty around Brexit and the increase in regulatory burden, this is no surprise. Certainly, the Brexit departure poses a potential BI threat with supply chain disruption anticipated.

Such a long and diverse list of threats requires new risk management solutions, with insurance increasingly providing tangible assistance. With experience across all sectors, and an in-depth understanding of new and emerging risks, Routen Chaplin is ideally placed to advise on the risk level facing your business and ensure you are adequately insured. Contact us today for immediate assistance and cover.

Source: Allianz Risk Barometer: Top Business Risks for 2019