Business interruption and supply chain issues, natural catastrophes and fires or explosions are the top three threats facing companies worldwide, according to the fourth annual Allianz Risk Barometer.

Source: insurancenews.com.au

Cyber risks, which are grouped with data breaches and espionage, continue to surge up the top 10, ranking fifth this year, up from eighth last year.

In Australia, the top risk is business interruption and supply chain, followed by loss of reputation or brand value and intensified competition.

Market stagnation or decline makes the top 10 for the first time in Australia, reflecting growing economic concerns.

Allianz says companies must adapt their planning to get a better grip on threats in today’s increasingly connected business environment.

“The root cause of many losses can often be traced back to the planning phase,” Allianz Global Corporate & Specialty CEO Chris Fischer Hirs said. “Identifying the impact of any interconnectivity early can mitigate or help prevent losses occurring.”

Companies are still not properly managing cyber risk, despite its rapid emergence as a major threat.

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