Pandemic outbreaks are now among the biggest business risks globally, while political risks and violence have returned to the forefront of the biggest global risks for the first time in three years in the Allianz Risk Barometer 2021, released on Tuesday.
Business outages were the highest-ranked global risk, followed by pandemic outbreaks, which were the largest climber, up 15 positions to second place, Munich-based Allianz Global Corporate & Specialty SE said in the report. Cyber incidents ranked close to a third, Allianz said.
Given the unparalleled disruption caused by the coronavirus outbreak, it was no surprise that business outages and pandemic outbreaks top this year's annual barometer, Allianz said. a reminder that not all hazards are insurable and that risk management and business continuity planning play a crucial role in helping companies survive extreme events, the report says.
All three risks and many others in this year's top 1
The results were based on a survey of 2,769 experts, including Allianz clients, brokers, trade associations and staff, from 92 countries and territories, conducted in October and November. Survey participants were asked to name up to three risks that they were most concerned about for their industries.
About 41% of Allianz's 10th survey respondents said they were worried about business outages, compared to 40% for pandemic outbreaks. The pandemic shows that companies need to prepare for a wider range of business disruptions and extreme events than before, Allianz said. of it, "says Thomas Varney, Chicago-based Regional Risk Adviser, North America, at AGCS.
Business continuity planning needs to become more holistic and dynamic, with companies adopting a strategy that develops alternative or multiple vendors and investing Varney said
Organizations must develop a network of interconnected supply chains that monitors real-time conditions and improves supplier selection, he said.
Businesses must also remember that there are still traditional business outages that can occur. natural disasters – we do not want to forget them because they are still there, "he said.
Survey results also showed the effects of the pandemic further down the rankings.
is largely a result of the coronavirus outbreak, said Allianz r, says the report.