In 2016, the perception of risk by companies is substantially changing. While companies are less concerned about traditional risks, such as natural disasters or fires, their fears grow about the impact of other negative events, such as intense market competition and cyber incidents.
These are the results of the Allianz Risk Barometer 2016, the 5th annual corporate risk survey published by Allianz Global Corporate &Specialty (AGCS), which contacted over 800 risk managers and insurance experts from more than 40 countries.
According to the Allianz Risk Barometer report, business and supply chain disruption remains the top risk for companies globally for the fourth consecutive year (38%). However, many companies are concerned that ILA business interruption losses, which usually result from property damage, are increasingly caused by cyber attacks, technical failures or geopolitical instability, i.e. immaterial damage.
For the first time, among the top three corporate risks, “Market evolution” (34%) and “IT incidents” (28%) are in second position. The latter are also indicated as the highest risk for companies in the next 10 years.
Natural catastrophes, on the other hand, drop two positions compared to the last survey, ranking in fourth place. This reflects the fact that in 2015 losses from natural disasters reached their lowest level since 2009.
“The risk landscape for businesses is changing as many industries undergo major transformation,” said AGCS CEO Chris Fischer Hirs. “New technologies, the increase in digitization and the 'Internet of Things' are changing the behavior of entrepreneurs and influencing industrial operations and business models. All this opens up many opportunities for businesses, but there is a need for a wide-ranging response. As insurers, we need to partner with our customers to help them tackle these new challenges comprehensively.”
