Risk focus from Allianz
Business interruption (BI) and supply chain, natural catastrophes, and fire/explosion are the principal risks that continue to occupy the attention of global companies at the start of 2014, according to the third annual Allianz Risk Barometer, which surveyed over 400 corporate insurance experts from 33 countries. The survey highlights the increasing complexity of business risks, including a combination of new technological, economic and regulatory risks, potentially creating a systemic threat for businesses. Allianz suggests in its report that companies can respond to these growing challenges through stronger internal controls, combined with an holistic approach to risk management. 2014 will also be a critical year for companies when it comes to dealing with the threat posed by a number of emerging perils, explained Axel Theis, CEO of Allianz Global Corporate and Specialty: “Identifying the impact of interconnectivity between different risks is a top priority for risk managers. Today’s business continuity plans must prepare for an increasing range of risk scenarios, which need to reflect the sometimes hidden knock-on effects. For example, a natural catastrophe can result in BI, IT-systems failure and power blackouts, among other perils.” Risky business In its 2014 Risk Barometer, Allianz highlights that businesses are more concerned about cyber and reputational risks than ever before. In the prolonged sluggish economic environment, they also worry more about market stagnation/decline and, especially in growth markets, about talent shortages. In Europe, the Risk Barometer shows companies are feeling much more confident about the future of the Eurozone than 12 months ago. However, a number of countries remain worried about the impact of austerity programmes: for Spain and Portugal, for example, this is now the top risk. Loss of reputation or brand value is the biggest mover in the Top 10 risks in the Americas region (from ranking eight in 2013 to four in 2014), but concerns over talent shortages are also notable in this region, as they are in the Asia Pacific region. Following a longstanding trend in the Americas and Europe, the Asia Pacific is now also increasingly occupied with regulatory changes, said Allianz, citing the example of tougher legislation over rising environmental pollution being introduced.
Business interruption (BI) and supply chain, natural catastrophes, and fire/explosion are the principal risks that continue to occupy the attention of global companies at the start of 2014, according to the third annual Allianz Risk Barometer, which surveyed over 400 corporate insurance experts from 33 countries. The survey highlights the increasing complexity of business risks, including a combination of new technological, economic and regulatory risks, potentially creating a systemic threat for businesses. Allianz suggests in its report that companies can respond to these growing challenges through stronger internal controls, combined with an holistic approach to risk management.
2014 will also be a critical year for companies when it comes to dealing with the threat posed by a number of emerging perils, explained Axel Theis, CEO of Allianz Global Corporate and Specialty: “Identifying the impact of interconnectivity between different risks is a top priority for risk managers. Today’s business continuity plans must prepare for an increasing range of risk scenarios, which need to reflect the sometimes hidden knock-on effects. For example, a natural catastrophe can result in BI, IT-systems failure and power blackouts, among other perils.”
Risky business
In its 2014 Risk Barometer, Allianz highlights that businesses are more concerned about cyber and reputational risks than ever before. In the prolonged sluggish economic environment, they also worry more about market stagnation/decline and, especially in growth markets, about talent shortages.
In Europe, the Risk Barometer shows companies are feeling much more confident about the future of the Eurozone than 12 months ago. However, a number of countries remain worried about the impact of austerity programmes: for Spain and Portugal, for example, this is now the top risk. Loss of reputation or brand value is the biggest mover in the Top 10 risks in the Americas region (from ranking eight in 2013 to four in 2014), but concerns over talent shortages are also notable in this region, as they are in the Asia Pacific region. Following a longstanding trend in the Americas and Europe, the Asia Pacific is now also increasingly occupied with regulatory changes, said Allianz, citing the example of tougher legislation over rising environmental pollution being introduced.