Cyber tops Allianz’s 2022 Business Risks Survey

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According to the most recent Allianz Risk Barometer poll, cyber incidents now pose the greatest threat to organizations, moving up from the third position in 2021.

This outcome follows a number of large data breaches and hacks that occurred last year, including the ransomware attack that shut down Colonial Pipeline for six days and cost the business $4.4 million to decrypt its systems.

 

Business disruption plummeted to the second most serious concern in a year marked by the ongoing coronavirus pandemic, cybercrime, and natural disasters.

 

The paper cautions that this is not to say that the pandemic has not had any negative effects, despite the fact that it “has exposed the fragility and complexity of modern supply networks and how numerous events can come together to cause issues, raising awareness of the need for improved resilience.”

Third on the list is the chance of a natural catastrophe, up from sixth in 2021.

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Swiss Re estimates that global insured catastrophe losses grew to $112 billion in 2021, the fourth-highest amount ever.

 

Although the report ranks climate change as the fifth top risk in 2022, it says that despite cyber being ranked as a more immediate threat to business, these two risks are “linked by the fact that two of the most significant impacts expected from changes in legislation and regulation in 2022 will be around big tech and sustainability.”

 

Since many businesses feel that they are now more prepared for the effects of these occurrences, the pandemic outbreak dropped to the fourth position for 2022.

The survey found that 80% of respondents thought they were “adequately” or “well” prepared.

 

The 11th annual report was created using data from a survey conducted in late 2021 among 2,650 risk management professionals from 89 countries and territories, including Allianz clients, brokers, trade associations, risk consultants, and underwriters, with an emphasis on large- and small- to mid-size businesses.

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