Cyber Incidents Are The Biggest Risk To Business

Uploaded on 2024-01-24 in NEWS-Cybersecurity News, FREE TO VIEW, BUSINESS-Services-Financial

Cyber incidents such as ransomware attacks, data breaches, and IT disruptions, are the top global business risk across all company sizes, according to the 2024 Allianz Risk Barometer Report with 36% of respondents to Allianz’s survey ranking cyber threats as being their biggest worry. The next most highly ranked issue was business interruption at just over 30%.

Unsurprisingly, Allianz report that cyber threats are constantly evolving as hackers gain access to new technologies or find new ways to exploit old vulnerabilities.

“Hackers are beginning to use Artificial Intelligence (AI) powered language models to increase the speed and scope of ransomware attacks, as well as create new malware and produce highly convincing phishing emails and deep fakes. Such attacks are likely to proliferate during 2024,” the Report said.

This is the third consecutive year that cyber incidents and business interruption ranked in first or second place as measured by Allianz.

The more traditional threats posed by natural catastrophes and fire and explosion climbed back up the rankings, according to the survey of 3,069 customers, brokers, and Allianz risk management experts from 92 countries and territories, whom the insurer questioned during October and November 2023.

44% of respondents (1,340) work for companies with more than $500 million in annual revenue.

26% (792) for companies with $100 million to $500 million in annual revenue.

30% (937) for companies with less than $100 million in annual revenue.

Natural catastrophes rose to third place globally from sixth place in the survey, while fire and explosion, which most frequently drive business interruption, rose to sixth from ninth. Natural catastrophes move up to third from fifth in the US, following a record loss from thunderstorms. “Changes in legislation and regulation” moved up to fourth globally from fifth, while political risks and violence rose again to eighth from 10th with more volatility and unrest expected this year.

The geopolitical environment continues to be uncertain and volatile and an increasingly relevant source of risk for supply chains and international trade, Allianz said.

Macroeconomic developments slipped to five from three, while shortage of skilled workforce fell to 10th from eighth globally. Climate change held its seventh spot in the ranking. Market developments, such as intensified competition, new entrants, and mergers and acquisitions, was a new entry in the top 10 global risks, placing in ninth position.

The energy crisis, pandemic outbreak and economic risks fell down the list of company concerns as Covid-19-related issues subsided.

However, recent disruption in the Red Sea, a vital trade route between Europe and Asia, due to attacks on vessels is the latest risk to supply chains and 2024 an election year, when up to 50% of the world’s population could go to the polls, increasing the risk of election-related civil unrest. Terrorism in Western Europe and North America is also an increasing threat, Allianz said.

Allianz: Allianz: Business Insurance: Reinsurance: Security Today:

Image: Orhan Turan

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