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