Cyber incidents such as ransomware attacks, data breaches, and IT disruptions are the biggest worry for companies in Australia, according to the Allianz Risk Barometer 2024, the 13th edition to date. Cyber risk dislodges natural catastrophe risks as the topmost risk in the country.
The proportion of businesses that ranked this risk increases to 52% in this year’s report compared to the 2023 Barometer. Cyber was ranked joint No. 1 risk with business interruption in 2022.
Most of the risks listed among the top 10 in the 2023 Barometer were given less weight this year, with two of them — pandemic outbreak (ranked 8th in 2023) and energy crisis (ranked 9th) — falling out of the list this year.
Risks that increased in weightage this year are cyber incidents (ranking No.1) and changes in legislation and regulation (ranking No. 5). Two new risks emerged this year, namely, fire & explosion and new technologies.
|
Rank
|
Risk
|
Percent
|
2023 rank
|
Trend
|
|
1
|
Cyber incidents (e.g., cyber crime, IT network and service disruptions, malware / ransomware, data breaches, fines, and penalties)
|
52%
|
4 (27%)
|
↑
|
|
2
|
Natural catastrophes (e.g., storm, flood, earthquake, wildfire, extreme weather events)
|
34%
|
1 (45%)
|
↓
|
|
3
|
Shortage of skilled workforce
|
23%
|
5 (25%)
|
↑
|
|
4
|
Business interruption (incl. supply chain disruption)
|
21%
|
2 (34%)
|
↓
|
|
5
|
Changes in legislation and regulation (e.g., tariffs, economic sanctions, protectionism, Euro-zone disintegration)
|
18%
|
7 (16%)
|
↑
|
|
5
|
Macroeconomic developments (e.g., inflation, deflation, monetary policies, austerity programs)
|
18%
|
5 (25%)
|
-
|
|
7
|
Climate change (e.g., physical, operational, and financial risks as a result of global warming)
|
16%
|
2 (34%)
|
↓
|
|
7
|
Fire, explosion
|
16%
|
NEW
|
↑
|
|
9
|
New technologies (e.g., risk impact of artificial intelligence, connected / autonomous vehicles, lithium-ion batteries, electric vehicles, Metaverse)
|
12%
|
NEW
|
↑
|
|
10
|
Market developments (e.g., intensified competition / new entrants, M&A, market stagnation, market fluctuation)
|
10%
|
10 (11%)
|
-
|
|
Source: Allianz Commercial. Figures represent how often a risk was selected as a percentage of all responses for that country. Respondents: 82.
Figures don’t add up to 100% as up to three risks could be selected
|
Global
Worldwide, cyber incidents (36%) are the biggest worry for companies in 2024, followed by business interruption in second place, and Nat CAT in the third position.
The 13th Allianz Risk Barometer incorporates the views of 3,069 respondents from 92 countries and territories. The annual corporate risk survey was conducted among Allianz customers (businesses around the globe), brokers, and industry trade organisations. It also surveyed risk consultants, underwriters, senior managers, claims experts, as well as other risk management professionals in the corporate insurance segment of Allianz Commercial and other Allianz entities.
Respondents were questioned during October and November 2023. The survey focused on large, smaller, and mid-size companies. Respondents were asked to select the industry about which they were particularly knowledgeable and to name up to three risks they believed to be most important.
Most answers were for large-size companies (>$500m annual revenue) [1,340 respondents, 44%]. Mid-size companies ($100m+ to $500m revenue) contributed 792 respondents (26%), while smaller enterprises (<$100m revenue) produced 937 respondents (30%). Risk experts from 24 industry sectors were featured.