- 12th annual Allianz survey: Natural Catastrophes ranks the highest, chosen by almost half of respondents as the top three risks in the country
- Business Interruption (#2), Climate Change (#2), and Cyber Incidents (#4) remain key concerns, with Macroeconomic Developments (#5) posing a rising risk to businesses
- Globally, Cyber Incidents, Business Interruption, and Macroeconomic Developments are the top three risks in 2023
Natural Catastrophes (#1 with 45% of respondents) is the top risk in Australia this year, according to the Allianz Risk Barometer compiled by Allianz Group’s corporate insurer Allianz Global Corporate & Specialty (AGCS). Business Interruption (#2 with 34%), Climate Change (#2 with 34%), and Cyber Incidents (#4 with 27%) remain key concerns, while Macroeconomic Developments (#5 with 25%) poses a growing risk to businesses, rising from #9 last year.
According to the survey, Cyber Incidents and Business Interruption rank as the biggest company concerns globally (both with 34% of all responses), and for the second year in succession. Macroeconomic Developments such as inflation, financial market volatility and a looming recession (up from #10 to #3 year-on-year), is a notable top riser in this year’s list of global business risks, as the economic and political consequences of the world in the aftermath of Covid-19 and the Ukraine war take hold.
AGCS’ CEO Joachim Mueller comments on the findings: “For the second year in a row the Allianz Risk Barometer shows that companies are most concerned about mounting cyber risks and business interruption. At the same time, they see inflation, an impending recession and the energy crisis as immediate threats to their business. Companies – in Europe and in the US in particular – worry about the current ‘permacrisis’ resulting from the consequences of the pandemic and the economic and political impact from ongoing war in Ukraine. It’s a stress test for every company’s resilience.
“The positive news is that as an insurer we see continuous improvement in this area among many of our clients, particularly around making supply chains more failure-proof, improving business continuity planning and strengthening cyber controls. Taking action to build resilience and de-risk is now front and center for companies, given the events of recent years.”