Global corporate insurance carrier Allianz has released the results of a survey conducted to understand identify the major business risks for 2020.
The survey comprised 2,700 risk management experts from 102 countries and territories.
The top 10 global business risks for 2020 include:
- Cyber incidents (e.g. cybercrime, IT failure/outage, data breaches, fines and penalties) - 39% of responses ranks as the most important business risk globally. Seven years ago, cyber ranked 15th with just 6% of responses.
“Incidents are becoming more damaging, increasingly targeting large companies with sophisticated attacks and hefty extortion demands. Five years ago, a typical ransomware demand would have been in the tens of thousands of dollars. Now they can be in the millions,” says Marek Stanislawski, Deputy Global Head of Cyber, AGCS.
- Business interruption including supply chain disruption - 37% of responses.
- Changes in legislation and regulation - these include trade wars and tariffs, economic sanctions, protectionism, Brexit, Euro-zone disintegration - 27% of responses.
Around 1,300 new trade barriers were implemented in 2019 alone. The US-
“Trade policy is becoming just another political tool for many different policy ends, such as economic diplomacy, geopolitical influence or environmental policy,” explains Ludovic Subran, Chief Economist of Allianz. “This activism is not restricted to the U.S.: it has spread to Japan and South Korea, India and the EU.”
- Natural catastrophes including storms, floods and earthquakes.
- Market developments (e.g. volatility, intensified competition/new entrants, M&A, market stagnation, market fluctuation)
- Fire and explosion - 19% of responses.
- Climate change /increasing volatility of weather - 17%.
- Loss of reputation or brand value - 15% of responses.
- New technologies (e.g. impact of Artificial Intelligence, autonomous vehicles, 3D printing, Internet of Things, nanotechnology, blockchain) - 13% of responses.
- Macroeconomic developments (e.g. monetary policies, austerity programmes, commodity price increase, deflation, inflation) - 11% of responses.
The report is available for download here.