Natural catastrophes jumped by five places to become the top risk named by businesses in Hong Kong, according to the Allianz Risk Barometer 2024, the 13th edition to date.
The proportion of businesses that ranked this risk increased to 33% in this year’s report, more than twice that in the 2023 Barometer.
One reason for this could be the catastrophic flooding in the territory in 2023 when Typhoon Haikui lashed Hong Kong and was the wettest storm in the territory's history.
New risks listed among the top 10 this year were market developments and the shortage of skilled workforce.
The top 10 risks in Hong Kong in 2024 are:
|
Rank
|
Risk
|
Percent
|
2023 rank
|
Trend
|
|
1
|
Natural catastrophes (e.g., storm, flood, earthquake, wildfire, extreme weather events)
|
33%
|
6 (16%)
|
↑
|
|
2
|
Cyber incidents (e.g., cyber crime, IT network and service disruptions, malware / ransomware, data breaches, fines, and penalties)
|
26%
|
4 (20%)
|
↑
|
|
3
|
Market developments (e.g., intensified competition / new entrants, M&A, market stagnation, market fluctuation)
|
23%
|
New
|
↑
|
|
4
|
Business interruption (incl. supply chain disruption)
|
21%
|
3 (30%)
|
↓
|
|
5
|
Climate change (e.g., physical, operational, and financial risks as a result of global warming)
|
20%
|
6 (16%)
|
↑
|
|
6
|
Fire, explosion
|
17%
|
9 (14%)
|
↑
|
|
7
|
Political risks and violence (e.g., political instability, war, terrorism, coup d’état,
civil commotion, strikes, riots, looting)
|
15%
|
6 (16%)
|
↓
|
|
8
|
Changes in legislation and regulation (e.g., tariffs, economic sanctions, protectionism, Euro-zone disintegration)
|
14%
|
2 (32%)
|
↓
|
|
8
|
Macroeconomic developments (e.g., inflation, deflation, monetary policies, austerity programs)
|
14%
|
4 (20%)
|
↓
|
|
8
|
Shortage of skilled workforce
|
14%
|
New
|
↑
|
|
Source: Allianz Commercial. Figures represent how often a risk was selected as a percentage of all responses for that country. Respondents: 66.
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 organizations. 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.