For the first time ever, Cyber incidents (39% of responses) ranks as the most important business risk globally in the ninth Allianz Risk Barometer 2020, relegating perennial top peril Business interruption (BI) (37% of 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 and a number of high-profile incidents. Seven years ago, it ranked only 15th with just 6% of responses.
Every year the Allianz Risk Barometer 2020 identifies the most important risks for our customers for the next 12 months and beyond.
The ninth edition is the biggest yet, incorporating the views of a record 2,718 respondents from 102 countries and territories!
The ninth edition is the biggest yet, incorporating the views of a record 2,718 respondents from 102 countries and territories!
#1
Cyber
incidents
#2
Business
interruption
#3
Changes in legislation and regulation
Changes in legislation and regulation (#3 with 27%) and Climate change (#7 with 17%) are the biggest climbers globally underlining the US-China trade war, Brexit and global warming as increasing concerns for companies and nations.
What are the top risks for 2020?
“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.
- The risk of cyber incidents have become more damaging and expensive for companies – and often result in lawsuits and litigation after the event
- Business interruption ranks second, but remains a key challenge with digitalization and civil unrest creating new causes of disruption and loss of income
- Climate Change rises to its highest-ever position – companies are most concerned about physical losses from extreme weather events but also fear consumer criticism and increasing regulatory and legal action.
Allianz Risk Barometer methodology
The annual corporate risk survey was conducted among Allianz customers (global businesses), brokers and industry trade organizations. It also surveyed risk consultants, underwriters, senior managers and claims experts in the corporate insurance segment of both Allianz Global Corporate & Specialty (AGCS) and other Allianz entities.
Respondents were questioned during October and November 2019. The survey focused on large and small- to mid-sized enterprises. Respondents were asked to select the industry about which they were particularly knowledgeable and to name up to three risks they believed to be of the most importance.
Most answers were for large enterprises (>$500mn annual revenue) [1,348 respondents 50%]. Mid-sized enterprises ($250mn to $500mn revenue) contributed 521 respondents (19%), while small enterprises (<$250mn revenue) produced 849 respondents (31%). Risk experts from 21 industry sectors were featured.
Ranking changes in the Allianz Risk Barometer are determined by positions year-on-year not percentages. All currencies US$ unless stated.
Allianz Risk Barometer 2020
The Allianz Risk Barometer is our annual report identifying the top corporate risks for the next 12 months and beyond.
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Commentary and guidance in this article are provided for information purposes only and are not intended to amount to advice on which reliance should be placed. Readers should seek further advice when dealing with their individual and particular situations. Allianz Insurance plc shall have no liability for any action taken as a result of and in reliance on the information contained in this article.