Allianz Risk Barometer 2016 – Business and supply chain disruption again No.1

For the fourth year in a row business interruption incl. supply chain disruption is the number one global business risk. This result is identified by the annual Allianz Risk Barometer 2016 which is based on the responses of 824 risk experts from 44 countries around the world.

According to the barometer business interruption and supply chain disruption (38 %), followed by market developments e.g. volatility, intensified competition (34 %) and cyber incidents e.g. data breaches (28 %) are the top three global business risks for 2016. In addition many of the top 10 perils such as political or cyber risks can even strengthen business interruptions.

 

Top 10 Global Business Risks for 2016 according to Allianz Risk Barometer 2016


diagram allianz risk barometer 2016

diagram Allianz risk barometer 2016

 

Natural catastrophes as severe business interruptions according to the Allianz Risk Barometer Study 2016

Business interruption (BI), including supply chain disruption, is still the number one of all top risks but the share of responses decreases year-on-year. This is caused by the increased awareness of other risks such as natural catastrophes which also have severe business interruption implications.

The concentration of production becomes constantly more important and the economic value in natural catastrophe hazard-prone areas, e.g. South East Asia, is also part of this continuing trend. The awareness of BI is also shown by Risk Barometer. With 51%, impacts of natural catastrophes are the most feared BI of businesses, followed by fire, explosion (46%) and supplier failure (32%).

“It´s not surprising that natural catastrophes top the causes of BI global businesses fear most as these events always lead to business interruption”, says Volker Muench, Global Practice Group Leader, Property, AGCS Property Underwriting in the Allianz Risk Barometer 2016.

 

The current status and future developments of the most feared business interruption

 

infographic allianz risk barometer 2016

infographic Allianz risk barometer 2016

 

What are your experiences? What do you think? We are looking forward to your comments.

Heiko Schwarz is the Founder and Managing Director of riskmethods, responsible for Sales, Marketing and Business Development. Heiko has been working in the software business for 16 years, with 13 years in different areas of the strategic purchasing market. He has excellent knowledge in procurement, supply management and risk management and has been successfully helping supply chain and procurement organizations implement solutions to increase performance, reduce costs and minimize risks.

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