Data breaches, attacks on critical infrastructure or physical assets and increased ransomware attacks drive cyber concerns (36% of responses).
Business interruption remains #2 with 31% of responses. Natural catastrophes is the biggest riser compared to 2023 with 26% in #3
Risk perception differs regionally for climate change, political risks and violence, and shortage of skilled workforce
The top business risks for 2024
The most important corporate concerns for the year ahead, ranked by 3,069 risk management experts from 92 countries and territories.
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Cyber incidents such as ransomware attacks, data breaches, and IT disruptions are the biggest worry for companies globally in 2024, according to the Allianz Risk Barometer. The closely interlinked peril of Business interruption ranks second. Natural catastrophes (up from #6 to #3 year-on-year), Fire, explosion (up from #9 to #6), and Political risks and violence (up from #10 to #8) are the biggest risers in the latest compilation of the top global business risks, based on the insights of more than 3,000 risk management professionals.
Allianz Commercial CEO
Large corporates, mid-size, and smaller businesses are united by the same risk concerns - they are all mostly worried about cyber, business interruption and natural catastrophes. However, the resilience gap between large and smaller companies is widening, as risk awareness among larger organizations has grown since the pandemic with a notable drive to upgrade resilience, the report notes. Conversely, smaller businesses often lack the time and resources to identify and effectively prepare for a wider range of risk scenarios and, as a result, take longer to get the business back up and running after an unexpected incident.
Trends driving cyber activity in 2024
Cyber incidents (36% of overall responses) ranks as the most important risk globally for the third year in a row - for the first time by a clear margin (5% points). It is the top peril in 17 countries, including
'Cyber criminals are exploring ways to use new technologies such as generative artificial intelligence (AI) to automate and accelerate attacks, creating more effective malware and phishing. The growing number of incidents caused by poor cyber security, in mobile devices in particular, a shortage of millions of cyber security professionals, and the threat facing smaller companies because of their reliance on IT outsourcing are also expected to drive cyber activity in 2024,' explains
Business interruption and natural catastrophes
Despite an easing of post-pandemic supply chain disruption in 2023, Business interruption (31%) retains its position as the second biggest threat in the 2024 survey. This result reflects the interconnectedness in an increasingly volatile global business environment, as well as a strong reliance on supply chains for critical products or services. Improving business continuity management, identifying supply chain bottlenecks, and developing alternative suppliers continue to be key risk management priorities for companies in 2024.
Natural catastrophes (26%) is one of the biggest movers at #3, up three positions. 2023 was a record-breaking year on several fronts. It was the hottest year since records began, while insured losses exceeded
Regional differences and risk risers and fallers
Climate change (18%) may be a non-mover year-on-year at #7 but is among the top three business risks in countries such as
Unsurprisingly, given ongoing conflicts in the
However, there is some hope among Allianz Risk Barometer respondents that 2024 could see the wild economic ups and down experienced since the Covid-19 shock settle down, resulting in Macroeconomic developments (19%), falling to #5 from #3. Yet economic growth outlooks remain subdued - just over 2% globally in 2024, according to
'But this lackluster growth is a necessary evil: high inflation rates will finally be a thing of the past,' says
In a global context, the shortage of skilled workforce (12%) is seen as a lower risk than in 2023, dropping from #8 to #10. However, businesses in Central and
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