Vienna (OTS) –
- Cyber, business interruption and natural disasters are the world’s top risks
- In addition to cyber attacks and business interruption, Austrian companies fear “blackouts” in particular
- Concerns about a shortage of skilled workers are increasing rapidly in Austria
- Pandemic fears are decreasing in companies worldwide
Cyber threats are the top concern for companies worldwide in 2022, according to the Allianz Risk Barometer, which was published for the eleventh time this year. The threat of ransomware attacks, data breaches or IT outages worries many companies even more than business and supply chain disruptions (2nd place), natural disasters (3rd place) or the COVID-19 pandemic (4th place), which have made strong reports in the past year. In Austria, behind cyber threats (1st place) and business interruptions (2nd place), failures in critical infrastructure have climbed into the top 3 risks for the first time (from 10th to 3rd place); the biggest climber is concern about a shortage of skilled workers (from 17th to 8th place) .
“Overall, disruptions to operations remain the most serious risk issue.” If potential is recognized in order to be able to control well with increased safety awareness at the same time, Stefanie Thiem, chief representative of AGCS (Allianz Global Corporate & Specialty) in Austria, summarizes the results: “For most companies The biggest fear is that they won’t be able to manufacture their products or provide their services. Building resilience to the many causes of business disruption is increasingly becoming a competitive advantage for organizations.”
Ransomware attacks as the biggest cyber threat
Cyber incidents are number one in the global ranking and number one in Austria. The main reason for this is the increase in ransomware attacks, which became the top cyber threat (57 percent). “Ransomware has become big business for cybercriminals who are honing their tactics and reflecting on the barriers to entry. The commercialization of cybercrime makes it easier to exploit vulnerabilities on a large scale,” said Severin Gettinger, Chief Commercial Underwriter for Austria, Switzerland Eastern Europe and AGCS. At the same time, the improvement of cyber security is evaluated as a central topic of corporate management in order to avoid negative consequences due to the authorities, investors or other interest groups.
Business interruption: increasing awareness of potential risks
Business interruptions are the second most important business risk worldwide and in Austria. The Allianz survey considers cyber incidents, fueled by increasing digitization, to be the most feared cause of business disruption overall, resulting from natural disasters and pandemics. The current corona pandemic in particular has illustrated the extent of the interconnectedness of modern supply chains in a year that was characterized by widespread business interruptions. Sudden increases in demand were accompanied by disruptions in production and logistics when factories had to close due to COVID-19 and at the same time there was a record overload of important container ports. Pandemic-related delays were exacerbated by other supply chain challenges, such as the Suez Canal blockade.
Companies feel better prepared for the pandemic
The outbreak of a pandemic is still a major concern for businesses, but it has slipped from second to fourth place globally. Although the COVID-19 crisis continues to overshadow the economic outlook in many industries, the majority of likely (80%) believe they are now likely or well-planned for a future pandemic wave. Improving business continuity management is seen as a significant measure that companies are taking.
Strengthening resilience to climate change
The rise of natural disasters and climate change to third and sixth place in global rankings is revealing as both upward trends are closely linked. For 2021, reinsurers expect insured catastrophe losses to be in excess of $100 billion. They primarily fear climate change-related weather events that cause damage to company property (57 percent), the consequences of the impact on operations and supply chains (41 percent). However, they are also concerned about realigning their company to be climate-friendly (36 percent), complying with complex regulations and avoiding the potential risk of litigation (34 percent).
“Crippling cyber attacks, the impact of numerous climate change-related weather events on the supply chain, and pandemic-related production problems and transport passes have led to disruptions, some of them significant, over the past year. It is all the more important for companies to draw up emergency plans for business continuity in order to be prepared in the event of a crisis,” concludes Thiem.
Allianz Global Corporate & Specialty
Allianz Global Corporate & Specialty (AGCS) is a leading global corporate insurer and a key business unit of the Allianz Group. AGCS offers risk advice, Property and casualty insurance solutions and alternative risk transfer for a wide range of business, corporate and specialty risks in ten dedicated business areas. Customers are as diverse as business life can be. They range from Fortune Global 500 companies to small businesses to individuals. Among them are not only the world’s largest consumer brands, tech companies and the global aviation and shipping industry, but also satellite operators or Hollywood film productions. They all look to AGCS for intelligent answers to their biggest and most complex risks in a dynamic, multinational business environment.
AGCS is in worldwide with its own teams 31 countries and through the network of Allianz Group and partners operates in over 200 countries and territories and employs over 4,400 people and associates. As one of the largest property and casualty insurance units in the Allianz Group, AGCS is backed by strong and stable financial ratings supports. In 2020, AGCS generated a total of EUR 9.3 billion in gross premiums worldwide.
Downloads in the AAllianz Press Center
- Photo: Stefanie Thiem (© Allianz Austria)
- Photo: Severin Gettinger (© Allianz Austria)
- Press release as pdf
- Diagrams as pdf
- Report as pdf
Please note our caveat regarding forward-looking statements:
Questions & contact:
Head of Corporate Communications
Allianz Group in Austria
Phone: +43 5 9009 80690
Allianz Group in Austria
Phone: +43 5 9009 88602
Allianz Global Corporate & Specialty SE
Phone: +49 89 3800 14303
Regional Head of Communications CEE
Allianz Global Corporate & Specialty SE
Phone: +49 89 3800 18900