- Businesses increasingly fear impact of non-physical damages, market uncertainties and political perils
- Companies greatly fear the impact of rising protectionism and other potential shocks to markets
- Business interruption continues to lead risk rankings as new non-physical damage triggers emerge
- Cyber risk concerns rise to #2 in the US and
Europe, globally top 3; driven by impact of indirect attacks, regulatory threats and technical and employee error in digitalized production environment
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Business interruption (BI) continues to lead the ranking for the fifth year in a row (37% of responses), primarily because it can lead to significant income losses, but also because multiple new triggers are emerging, especially non-physical damage or intangible perils, such as cyber incidents as well as disruption caused by political violence, strikes and terror attacks. This trend is driven, in part, by the rise of the “Internet of Things” (IoT) and the ever-greater interconnectivity of machines, companies and their supply chains, which can easily multiply losses in case of an incident. Companies are also facing potential financial losses with the changing political landscape (Brexit, Trump, upcoming EU elections etc.) leading to fears of increasing protectionism and anti-globalization.
“Companies worldwide are bracing for a year of uncertainty,” says
Market developments and volatility (31% of responses) is the second most important business peril in 2017 and the top concern in the aviation/defense, financial services, marine and shipping and transportation sectors, as well as across the
At the same time, increasing reliance on technology and automation is transforming, and disrupting, companies across all industry sectors. While digitalization is bringing companies new opportunities, it is also shifting the nature of corporate assets from mostly physical to increasingly intangible, bearing new hazards, above all cyber risks (30% of responses). Companies ranked cyber threats a close #3 globally, climbing to #2 across the
The threat now goes far beyond hacking and privacy and data breaches, although new data protection regulations will exacerbate the fallout from these for businesses. Increasing interconnectivity and sophistication of cyber-attacks pose not only a huge direct risk for companies but also indirectly via exposed critical infrastructures such as IT, water or power supply. Then there is the threat posed by technical failure or human error, which can lead to long-lasting and widespread BI exposures. In the digitalized production or Industry 4.0 environment, a failure to submit or interpret data correctly could stop production. Businesses need to think about data as an asset and what prevents it from being used. Results also show that smaller companies may be underestimating cyber risk: in this category (revenues <€250 million), cyber ranks only #6. However, the impact of a serious incident could be much more damaging for such firms.
Natural catastrophes (#4) and climate change/ increasing volatility of weather (respectively 24% and 6% of responses) also rank high on the agenda of businesses this year, particularly in
The sixth annual Allianz Risk Barometer published by
- Allianz Risk Barometer Overview (with Executive Summary):
- Allianz Risk Barometer 2017:
- Allianz Risk Barometer 2017 Appendix:
- Top 20 business risks globally
- Top 10 risks by region
- Top 10 risks by country
- Top 10 risks by industry
- Top 10 risks by company size
Worldwide, AGCS operates in 30 countries with own units and in more than 160 countries through the
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