LONDON - Cyber incidents, including an increase in ransomware attacks and data breaches, have emerged as the leading concern for global businesses in 2024, as highlighted by the Allianz (ETR:ALVG) Risk Barometer, which reflects insights from over 3,000 experts. The report underscores a heightened awareness of risks such as business interruption, which maintains its stance as the second most significant peril, and natural catastrophes, with fire/explosion risks and political unrest also gaining attention worldwide. The rise in international disputes and anticipated societal polarization have amplified the political unrest.
In Asia, the barometer points to cyber threats as the most significant risk, compounded by concerns over business interruption due to supply chain vulnerabilities and the impact of natural disasters. The region's importance in global supply chains, especially in the pharmaceutical and electric vehicle industries, is underscored by recent events like Japan's earthquake and severe floods in Malaysia and Thailand. These events demonstrate the persistent threat of natural disasters in Asia.
The post-pandemic landscape has exposed a widening gap in risk resilience, with larger corporations managing to bolster their defenses, while smaller businesses lag behind, often hindered by limited resources. This disparity has brought to light the critical need for robust risk management practices and the implementation of multinational policies that enable rapid response to incidents.
In South Africa, persistent critical infrastructure blackouts have emerged as the top business risk. Urgent calls for investment into resilient infrastructure against these frequent blackouts have been stressed by industry leaders. This situation has led to rising concerns over energy crises.
The barometer also draws attention to the growing shortage of cybersecurity professionals globally. Despite a dip in ranking, this shortage remains crucially linked to cybersecurity defense efforts. It poses a challenge for companies aiming to fortify their defenses against the increasing threat of cyberattacks that are now exploiting novel technologies like generative AI for more sophisticated attacks.
Businesses globally are encouraged to revise insurance strategies amidst digital transformation challenges and unpredictable geopolitical climates. The effects of climate change differ by region with net zero transition risks becoming apparent due to low-carbon tech investments. This shift has led to a record year for severe thunderstorms, resulting in unprecedented insurance claim costs.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.