Top 10 Business Risks
The risk of Cyber moving from No.3 last year to No.1 this year.
Our friends at Allianz have released their 2018 Risk Barometer Report, and it is no surprise that the risk of Cyber incidents sits at the top of the list.
The report notes companies are increasingly concerned about changing regulation and high profile attacks, with the risk of Cyber moving from No.3 last year to No.1 this year. This is the seventh Allianz Risk Barometer, which is published annually by Allianz Global Corporate & Specialty (AGCS).
Interestingly, Business Interruption remains at No.2, with the top 2 risks ranked well ahead of any other risk, and thus an important reminder of making sure your insurance program meets the key risks faced by businesses.
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.
Top 10 risks in Australia
| Rank | Percent | 2017 rank | Trend | |
| 1. | Cyber incidents (e.g. cyber crime, IT failure, data breaches) | 49% | 3 (31%) | ˄ |
| 2. | Business interruption (incl. supply chain disruption) | 46% | 1 (51%) | ˅ |
| 3. | Changes in legislation and regulation (e.g. government change, economic sanctions, protectionism, Brexit, Eurozone disintegration) |
28% | 4 (23%) | ˄ |
| 4. | New technologies (e.g. impact of increasing interconnectivity, nanotechnology, artificial intelligence, 3D printing, drones) | 28% | 7 (18%) | ˄ |
| 5. | Loss of reputation or brand value | 26% | 7 (18%) | ˄ |
| 6. | Natural catastrophes (e.g. storm, flood, earthquake) | 26% | 6 (21%) | ˄ |
| 7. | Market developments (e.g. volatility, intensified competition / new entrants, M&A, market stagnation, market fluctuation) |
21% | 2 (44%) | ˅ |
| 8. | Quality deficiencies, serial defects, product recall NEW | 13% | – | ˄ |
| 9. | Climate change/increasing volatility of weather NEW | 10% | – | ˄ |
| 10. | Talent shortage NEW | 10% | – | ˄ |
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