Allianz recently published the 2020 Allianz Risk Barometer Report, which reveals the top risks on the minds of risk managers around the world for the year ahead.
For the first time ever, Cyber incidents (35% of responses) ranks as the most important business risk in Asia Pacific, relegating perennial top peril Business interruption (BI) (34% of responses) to second place.
The region’s results mirror a global trend that has seen awareness of the cyber threat growing rapidly in recent years, driven by companies increasing reliance on data and IT systems and a number of high-profile incidents. It is a stark change from seven years ago when it did not even feature in the top 10 risks on the mind of risk managers regionally.
In addition to being the top risk regionally and globally, Cyber incidents is among the top three risks in 80% of the countries surveyed in Asia Pacific, with India and South Korea ranking it as the top business risk. Businesses face the challenge of larger and more expensive data breaches, an increase in ransomware and spoofing incidents, as well as the prospect of privacy-driven fines or litigation after any event. A mega data breach - involving more than one million compromised records - now costs on average $42mn up 8% year-on-year.
Climate change (#3 with 25%) and Political risks and violence (debuting in the top 10 at #10 with 9%) are the biggest climbers regionally, underlining global warming and the business interruption that accompanies civil unrest as increasing concerns for companies and nations.
For Korea, the top 10 risks which can also be found in the Allianz Risk Barometer 2020 – Appendix.
More information on the findings of the Allianz Risk Barometer 2020 is available here: