According to the survey, these are the most significant risks business currently face:
“While pandemic outbreak has dropped in the rankings, the effects of COVID-19 on supply chains remains a major issue for Australian businesses”, says Mark Mitchell, Allianz’s Regional CEO, Global Corporate & Specialty for Asia Pacific.
“This is one of the reasons why business interruption tops the list of risks for 2022 in Australia and is a close second globally,” says Mark Mitchell.
He also believes that business interruption would be expected to worsen if further government-mandated lockdowns occurred.
“While these are not expected in response to the Omicron variant, this could occur if a new, more virulent variant emerged in 2022. That said, the impact Omicron is having on the workforce and supply chains suggests that business disruption, if not interruption, will be an ongoing issue for some months and possibly longer depending on the combined impact of COVID and the expected return of a traditional winter influenza season, as is currently occurring in the northern hemisphere." says Mark Michell.
Allianz says this is the second consecutive year that cyber risks have ranked high on the list, reflecting the severity of the impact of data breaches, ransomware attacks and other digital disruptions to businesses.
Since the pandemic broke, acts of cybercrime have spiked across the globe as hackers and digital criminals take advantage of the remote working conditions and a sharp uptake in online activity brought about by the ongoing health crisis.
"It is no surprise that cybercrime is the top Asia Pacific risk for the third consecutive year and second in Australia in light of the high-profile ransomware attacks, combined with problems caused by accelerating digitalisation and remote working."
“Following a year of unprecedented global supply chain disruption, business interruption is a consequence of many of the other risks in the rankings, such as cyber and natural catastrophes and will be a perennial concern for companies the world over and in Asia Pacific. Meanwhile, the pandemic has exposed the extent of vulnerabilities in modern supply chains, and how multiple events can come together to create disruption”. Mr Mitchell said.
Poorly structured insurance is not only a waste of money, but it can also have dire consequences for a company that is left without adequate safeguards against these risks.
Navigating the world of business insurance can be difficult. So, contact Australia’s leading specialist consultancy group that supports businesses through the complex exercise of implementing efficient insurance programs.
Source: Insurancenews.com
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