Countries and companies are currently having to deal with the effects of numerous crises. As a result, the risks also increase. A recent study has identified the ten most important risks for companies in 2024.
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Companies around the world have to deal with numerous challenges such as digitalization, climate change and an uncertain geopolitical environment. Extreme weather events, ransomware attacks or regional conflicts strain the resilience of supply chains and business models.
Against this background, Allianz surveyed over 3,000 risk management experts from 92 countries about the current risk situation and the most important corporate risks.
Cyber incidents as the biggest risk
Criminals are continually looking for ways to leverage new technologies like generative artificial intelligence (GenAI) to automate and accelerate attacks through more effective malware and phishing. The increasing number of incidents due to a lack of cyber security, especially on mobile devices, is expected to lead to an increase in cyber attacks this year. This trend is further exacerbated by the shortage of cybersecurity professionals and the growing reliance of small businesses on IT outsourcing.
It is no wonder that cyber incidents (like last year) represent the main risk for companies. In 17 countries, including Australia, Germany, France, India, Japan, Great Britain and the USA, experts consider the dangers of cyber attacks to be the greatest risk.
For 59 percent of respondents, data breaches are the most concerning threat, ahead of attacks on critical infrastructure or assets, cited by 53 percent. Concern about ransomware attacks is also widespread, as these have increased significantly over the past year. In 2023, claims increased by more than 50 percent compared to 2022.
This is closely related to general business interruptions, which takes second place.
Further risks in focus
Globally, natural disasters have risen from 6th to 3rd place compared to the previous year. Fire and explosions (from 9 to 6) and political risks and violence (from 10 to 8) are also rated higher.
In contrast to the global perspective, however, changes to laws and regulations, such as tariffs, sanctions or protectionist efforts, take third place in Germany (2023: 4).
It is striking that in Germany the shortage of skilled workers is viewed as a major risk and is in fourth place here. Compared to the previous year, it has increased by two positions. Globally, the shortage of skilled workers is only rated 10th as a risk.
The top ten business risks from the perspective of German companies for 2024.
Differences in crisis resilience
Despite a similar perception of risk, the difference in resilience between large and small companies is increasing:
- The corona pandemic has sensitized larger companies in particular to increased risk awareness and initiated appropriate measures to increase resilience.
- Smaller companies often do not have the time or resources to develop and effectively prepare for a variety of risk scenarios. This results in them taking longer to get the business back on track after an unexpected incident.
Regional differences in risk assessment
Although climate change remains in seventh place in the ranking at 18 percent, it is one of the top three risk positions in Brazil, Greece, Mexico and Turkey. Here, physical damage to company assets from extreme weather events is the main threat, particularly for utilities, energy and industrial companies.
As the pursuit of carbon neutrality and the shift to green technologies increases, the likelihood of corporate risk and liability issues increases as companies must make significant investments in new, often unproven, low-carbon technologies to transform their business models.
Due to the ongoing conflicts in the Middle East and Ukraine as well as tensions between the USA and China, political risks and violence are rising from 8th to 10th place at 14 percent. The upcoming super election year, in which more than 50 percent of the world’s population will vote, also poses risks significant risk potential.
Particular attention is paid to the elections in the USA, India, Russia and Great Britain. Dissatisfaction with the election results, combined with general economic uncertainty, rising costs of living and the spread of misinformation via social media, could, in a worst-case scenario, lead to further social polarization and increasing potential for conflict worldwide.
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2024-02-12 23:43:06
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