The Allianz Risk Barometer is an annual report identifying the top corporate risks for the year ahead.
It’s based on the insight of over 2,700 risk management experts from 94 countries and territories.
Here we look at the top five risks identified by UK participants.
1. Cyber incidents (#1 in 2022)
e.g. IT outages, ransomware attacks or data breaches
Ransomware attacks are still a top concern for businesses as frequency of attacks remain high, as do related claims costs. According to NordLocker’s analysis, UK businesses suffer the third highest rate of ransomware attacks in the world, surpassed only by the US and Canada, with small businesses most at risk of being targeted.
SMEs are increasingly impacted by cyber incidents as those with weaker controls are easily hit by hackers in search of financial rewards for little effort. The consequences for these firms are often much more severe given the lack of financial and employee resources that they have access to compared to large corporations.
2. Business interruption (#2 in 2022)
Including supply chain disruption
Despite positive moves to diversify business models and supply chains since the pandemic, businesses continue to experience significant disruption around the world.
The recent macro-economic turmoil and the war in Ukraine has increased vulnerability, triggering shortages and price increases in energy, food and certain raw materials. The conflict has added further pressure to supply chains already struggling with post-pandemic disruption, such as shortages in semiconductors, which have yet to fully recover.