‘Cyber incidents’ will be the top risk for Australian businesses this year with companies increasingly concerned about changing regulation and high profile attacks, according to the Allianz Risk Barometer 2018. This is one of the key findings of the seventh Allianz Risk Barometer, which is published annually by Allianz Global Corporate & Specialty (AGCS). The 2018 report is based on the insight of a record 1,911 risk experts from 80 countries.
In Australia, ‘Cyber incidents’ tops the risk list for the first time with 49% of responses, up from third (31% of responses) in 2017. The risk usurped ‘Business interruption’, which dropped to second place this year with 46% of responses.
AGCS Australia Chief Executive Willem Van Wyk says the change in risks was likely owing to the new mandatory data notification laws that come in to effect in Australia on 22 February.
“Cyber risk is a 24/7 threat that continues to dominate board discussions both here in Australia and around the world as companies grapple with this fast-evolving risk,” Van Wyk says.
The risk of ‘New technologies’ was also a big mover in Australia’s risk list this year. It jumped from seventh place in 2017 to equal third (alongside ‘Changes in legislation and regulation’) with 28% of responses. “Australia’s top risks paint an interesting picture of the local business landscape, with companies clearly concerned about how new technologies will either help or hinder their operations, and what the regulatory environment will do in response,” Van Wyk says.