For the first time ever, Cyber incidents ranked as the most important business risk globally in the ninth Allianz Risk Barometer 2020.
Cyber risk was selected by 39% of respondents, overtaking Business interruption, which was chosen by 37%.
Awareness of the cyber threat has grown rapidly in recent years, driven by companies increasing reliance on data and IT systems and a number of high-profile incidents.
Seven years ago, Allianz notes, cyber ranked 15th with just 6% of responses.
Changes in legislation and regulation, which ranked third with 27%, and climate change at seventh with 17% were the biggest climbers.
Allianz says this movement underlines the US-China trade war, Brexit and global warming as increasing concerns for companies and nations.
“The Allianz Risk Barometer 2020 highlights that cyber risk and climate change are two significant challenges that companies need to watch closely in the new decade,” said Joachim Müller, Chief Executive Officer of AGCS.
“Of course, there are many other damage and disruption scenarios to contend with but if corporate boards and risk managers fail to address cyber and climate change risks this will likely have a critical impact on their companies’ operational performance, financial results and reputation with key stakeholders.
“Preparing and planning for cyber and climate change risks is both a matter of competitive advantage and business resilience in the era of digitalization and global warming.”
The annual survey on global business risks from Allianz Global Corporate & Specialty incorporates the views of close to 3,000 experts in over 100 countries including.