Worries increase around global risk threats

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Uncertainty across a wide range of threats and risks is on the rise according to the 6th annual Allianz Risk Barometer.

This year’s study found companies increasingly worry about the unpredictable business environment where markets are volatile and political perils, such as protectionism or terrorism are on the rise. Other growing concerns are digital dilemmas arising from new technologies and cyber risks, as well as natural catastrophes.

However, the insurer said what continues to trouble them most, are losses from business interruption.

It is the fifth year in a row that BI has led the ranking for the fifth year in a row (37{742ba7ad51624ece1866c66a287646d5d83f8799e500770110b1206b0cd9ae23} of responses), primarily because it can lead to significant income losses, but also because multiple new triggers are emerging, especially non-physical damage or intangible perils, such as cyber incidents, and disruption caused by political violence, strikes and terror attacks.

This trend is driven, in part, by the rise of the “Internet of Things” (IoT) and the ever-greater interconnectivity of machines, companies and their supply chains which can easily multiply losses in case of an incident. Companies are also facing potential financial losses with the changing political landscape (Brexit, Trump, upcoming EU elections etc.) leading to fears of increasing protectionism and anti-globalization.

“Companies worldwide are bracing for a year of uncertainty,” says Chris Fischer Hirs, CEO of Allianz Global Corporate & Specialty SE. Unpredictable changes in the legal, geopolitical and market environment around the world are constant items on the agenda of risk managers and the C-suite. A range of new risks are emerging beyond the perennial perils of fire and natural catastrophes which require re-thinking of current monitoring and risk management tools.”