Business interruption, natural catastrophes top risk manager concerns
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Business interruption risks and natural catastrophes are top concerns of risk managers in 2015, according to a study released on Wednesday by Allianz Global Corporate & Specialty S.E.
The fourth annual Allianz Risk Barometer, which surveyed over 500 risk managers and corporate insurance experts from more than 40 countries, found business interruption and supply chain risk, picked by 46% of respondents, natural catastrophes (30%), and fire and explosion (27%) as the top concerns for 2015.
Thomas Varney, Chicago-based regional manager, North America for Allianz Global Corporate & Specialty North America said that concerns over supply chains and business interruptions retained the top spot from last year's survey, while concerns about natural catastrophes receded slightly. “The big difference now is how supply chain is far and away the No. 1 risk while natural catastrophes have fallen,” Mr. Varney said.
Another risk garnering more concern among respondents is cyber risk, which ranked 5th in this year's survey, compared with 8th in last year's survey.
“It's interesting how far cyber has come up,” Mr. Varney said. “The reputational risk that can arise out of data breaches can really put a company in a bad situation.”
Moreover, the risks identified by the survey are becoming increasingly interrelated said Chris Fischer Hirs, CEO of Allianz Global Corporate & Specialty S.E.
“One risk can lead to several others,” he said in a statement. “Natural catastrophes or cyber attacks can cause business interruption not only for one company, but to whole sectors or critical infrastructure.”
Accordingly, risk managers must adjust to reflect this new reality, Mr. Hirs said.
“Identifying the impact of any interconnectivity early can mitigate or help prevent losses occurring,” he said. “It is also essential to foster cross-functional collaboration within companies to tackle modern risks.”
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