Corporate risk analysis from AGCS
Allianz Global Corporate & Specialty (AGCS) has released the Allianz Risk Barometer 2016, its fifth annual survey of corporate risk, incorporating data from over 800 risk managers and insurance experts from over 40 countries. The survey’s key finding was that at the beginning of 2016, businesses are facing a ‘changing risk landscape’, with fierce competition and cyber incidents ranking as the most major threats.
Allianz Global Corporate & Specialty (AGCS) has released the Allianz Risk Barometer 2016, its fifth annual survey of corporate risk, incorporating data from over 800 risk managers and insurance experts from over 40 countries. The survey’s key finding was that at the beginning of 2016, businesses are facing a ‘changing risk landscape’, with fierce competition and cyber incidents ranking as the most major threats.
Business interruption was categorised as the top global risk for the fourth consecutive year, and Allianz expects that cyber attacks, geopolitical instability and technology failure will feature as new potential drivers of BI losses.
In the UK, specifically, five new risks entered the top 10 – market developments; macroeconomic developments; new technologies; talent shortage plus an ageing workforce; and Eurozone disintegration. The two highest rising risks are cyber incidents (which was third in the top 10 in 2015 and rose to first place for 2016) and changes in legislation and regulation. The survey also indicates that while companies are concerned about the increasing sophistication of cyber attacks, they are still underestimating technical failures on the part of their IT infrastructure as potential causes of losses.
“The corporate risk landscape is changing as many industrial sectors are undergoing a fundamental transformation,” said Chris Fischer Hirs, CEO of AGCS. “New technologies, increasing digitalisation and the ‘Internet of Things’ are changing customer behaviour, industrial operations and business models, bringing a wealth of opportunities, but also raising awareness of the need for an enterprise-wide response to new challenges. As insurers we need to work together with our corporate clients to help them to address these new realities in a comprehensive manner.”