New risks emerge for South African businesses
Three new major risks have emerged for South African businesses in the latest Allianz Risk Barometer 2016, with the business landscape expected to experience a substantial shift in 2016, said Allianz Global Corporate and Specialty on Wednesday.
Cyber incidents, business interruption (BI) and changes in legislation and regulation have, for the first time, topped the list of concerns of surveyed businesses, which also includes the impact of disruptive events and fierce competition in markets.
These concerns have overtaken traditional industrial risks, such as natural catastrophes or fires.
The barometer found that 42% of businesses red-flagged cyber incidents, while 32% highlighted BI and 26% legislative and regulatory changes as risks in the near term.
Twenty-six per cent of businesses also believed that macroeconomic developments, such as austerity programmes, commodity price increases and inflation or deflation were a risk.
Power blackouts also debuted on the list, with 21% of businesses identifying this risk, along with market developments.
BI remains the top risk for businesses globally for the fourth consecutive year; however, many companies are concerned that BI losses, which usually result from property damage, will increasingly be driven by cyber-attacks, technical failure or geopolitical instability as new “non-physical damage” causes of disruption.
Cyber incidents were also cited as an important long-term risk in the next ten years, with market developments also a major riser in this year’s Allianz Risk Barometer.
“The corporate risk landscape is changing as many industrial sectors are undergoing a fundamental transformation,” explained Allianz CEO Chris Fisher Hirs.
The barometer surveyed some 824 respondents from 44 countries.