Reports from the 9th Allianz Risk Barometer 2020, ranks for the first time ever Cyber incidents (39 percent of respondents) as the most crucial business risk globally relegating perennial top peril Business interruption (37 percent responses) to second place. Awareness of the cyber threat has grown rapidly in recent years, driven by companies’ increasing reliance on data and IT systems. Seven years ago, it ranked only 15th with just 6 percent of responses.
Changes in legislation and regulation is third with 27 percent and Climate change is number 7 with 17 percent are the biggest climbers globally underlining the U.S – China trade war, Brexit and global warming as increasing concerns for companies and nations. The annual survey on global business risks from Allianz Global Corporate & Specialty (AGCS) incorporates the views of a record 2,718 experts in over 100 countries including CEOs, risk managers, brokers and insurance experts.
The Allianz Risk Barometer 2020 highlights that cyber risk and climate change are two significant challenges that companies need to watch closely in the new decade, says Joachim Müller, CEO of AGCS. “Of course, there are many other damage and disruption scenarios to contend with, but if corporate boards and risk managers fail to address cyber and climate change risks this will likely have a critical impact on their companies’ operational performance, financial results and reputation with key stakeholders. Preparing and planning for cyber and climate change risks is both a matter of competitive advantage and business resilience in the era of digitalization and global warming."