In its latest Risk Barometer, Allianz reveals that cyber incidents have claimed the top spot as the foremost global business risk for 2024.
This concern is underscored by the rising threat of ransomware attacks, data breaches, and IT disruptions. The closely following peril is business interruption, while natural catastrophes have surged to the third position globally.
The United States sees a significant shift as cyber now takes precedence over business interruption. Meanwhile, in Canada, business interruption jumps to the top spot, emphasising regional variations in risk perception.
Petros Papanikolaou, Allianz Commercial CEO, emphasises the impact of digitalisation, climate change, and geopolitical uncertainties on global businesses.
The report notes a growing resilience gap between larger corporations and smaller businesses, attributing it to increased risk awareness among larger organisations post-pandemic.
In the realm of cyber threats, data breaches are identified as the most concerning, followed by attacks on critical infrastructure and the resurgence of ransomware activities.
Scott Sayce, Global Head of Cyber at Allianz Commercial, highlights cyber criminals’ exploration of new technologies such as generative artificial intelligence (AI) to escalate attacks.
Business interruption retains its prominence globally, reflecting the interconnectedness of the volatile business environment. Natural catastrophes have risen to the third position, driven by record-breaking climate events in 2023.
Regional variations persist, with climate change ranking among the top three risks in specific countries. Political risks and violence have climbed to the eighth spot globally due to ongoing conflicts and geopolitical tensions.
Despite hopes for economic stabilisation in 2024, macroeconomic developments fall to the fifth position. The shortage of skilled workforce, while a lower global concern, remains a top-five risk for businesses in Central and Eastern Europe, the UK, and Australia.
Ludovic Subran, Chief Economist at Allianz, suggests that lackluster growth may be a necessary evil, anticipating lower interest rates in the second half of the year. However, he cautions against potential upheavals depending on the outcomes of numerous elections in 2024.
The report underscores the critical need for businesses to adapt and fortify their risk management strategies, especially in the face of evolving cyber threats and an unpredictable global landscape.
