January 19, 2018 by Jason Contant
Business interruption will be the top risk for companies in Canada this year, according to Allianz Global Corporate & Specialty’s (AGCS) Allianz Risk Barometer 2018.
“Business interruption (BI) can be a consequence of many of the other risks identified in the risk barometer,” noted Ulrich Kadow, CEO of Allianz Global Corporate & Specialty (AGCS) Canada. “Whether it stems from a natural catastrophe or a cyberattack, it is a daily concern for businesses.”
The seventh annual survey by Allianz, released on Tuesday, is based on insights from 1,911 risk experts from 80 countries.
Among the 51 Canadian risk expert respondents, 60% cited business interruption (including supply chain disruption) as the top risk. Ranked second and third, at 34 per cent each, are cyber incidents (such as cybercrime, IT failure and data breaches), and natural catastrophes such as storm, flood and earthquake. The figures don’t add up to 100 per cent because up to three risks could be selected.
Rounding out the top 10 risks are:
Globally, business interruption (42%) and cyber incidents (40%) led the year’s top business risks. Larger losses from nat cats (30%) are a rising concern for businesses, based on the record-breaking 2017 disaster year. Climate change and increasing volatility of weather also ranked in the top 10 business risks globally for the first time.
The risk impact of new technologies (15%) was also one of the biggest climbers on the global list, as companies recognize that innovations such as artificial intelligence or autonomous mobility could create new liabilities and larger scale losses in the future.