global
\nbusiness risks<\/a> from Allianz Global Corporate & Specialty (AGCS)
\nincorporates the views of 2,769 experts in 92 countries and territories, including
\nCEOs, risk managers, brokers and insurance experts. <\/p>\n
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Globally, Business interruption <\/b>(#1 with 41% responses) and Pandemic outbreak<\/b> (#2 with 40%) are this year’s top business
\nrisks with Cyber incidents<\/b> (#3 with 40%) ranking a close third, making it
\na trio of Covid-19 related risks.<\/p>\n
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“The Allianz Risk
\nBarometer 2021 is clearly dominated by the Covid-19 trio of risks. Business
\ninterruption, pandemic and cyber are strongly interlinked, demonstrating the
\ngrowing vulnerabilities of our highly globalized and connected world,” says
\nJoachim M\u00fcller, CEO of AGCS. “The coronavirus pandemic is a reminder that risk
\nmanagement and business continuity management need to further evolve in order
\nto help businesses prepare for, and survive, extreme events. While the pandemic
\ncontinues to have a firm grip on countries around the world, we also have to
\nready ourselves for more frequent extreme scenarios, such as a global-scale
\ncloud outage or cyber-attack, natural disasters driven by climate change or
\neven another disease outbreak.”<\/p>\n
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The Covid-19 crisis
\ncontinues to represent an immediate threat to both individual safety and
\nbusinesses, reflecting why pandemic outbreak has rocketed 15 positions up to #2
\nin the global rankings at the expense of other risks. Prior to 2021, it had
\nnever finished higher than #16 in 10 years of the Allianz Risk Barometer, a
\nclearly underestimated risk. However, in 2021, it’s the number one risk in 16
\ncountries and among the three biggest risks across all continents and in 35 out
\nof the 38 countries which qualify for a top 10 risks analysis. Japan, South
\nKorea and Ghana are the only exceptions. China is the only country in Asia
\nPacific where Pandemic outbreak is not a new risk as it was ranked #7 in 2020.<\/p>\n
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Top Asia Pacific Risks<\/u><\/b><\/p>\n
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Similar to the global results, Cyber incidents<\/b> (#1 with
\n41% responses), Pandemic outbreak<\/b>
\n(#2 with 39%) and Business
\ninterruption<\/b> (#3 with 38%) skyrocketed to the top three business risks in
\nAsia Pacific followed by Natural catastrophes<\/b> (#4 with 27% ) rounding out the key issues in the region. <\/p>\n
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As
\nexpected, Changes in legislation and regulation<\/b> (#5 with 22%) also kept
\nits place amongst the top five Asia Pacific risks in 2021 for the third
\nconsecutive year. This was largely due to the several elections and change in
\nleaderships that took place across the region in Singapore, Taiwan, Indonesia,
\nSouth Korea and Malaysia, as well as the broader implications on supply chains
\nas a result of China’s trade wars and greater uncertainty brought on by
\ngovernments introducing tough lock down measures.<\/p>\n
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Commenting
\non the Asia Pacific results Mark Mitchell, AGCS APAC Managing Director, said:
\n“The Pandemic has demonstrated just how vulnerable the world and businesses
\nhave become to unpredictable multi-country events and this has forever changed
\nthe risk landscape for clients and society more generally. The COVID-19
\npandemic has not only changed our society, but has also fundamentally changed
\nthe way businesses operate, especially the acceleration towards greater
\ndigitalisation driven by more companies working remotely. Our hope is that
\nbusinesses and clients can learn from their experiences in 2020 and make sure
\nthey have in place measures which will reduce the impact of similar events in
\nthe future.”<\/p>\n
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Top China Risks<\/b><\/p>\n
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In China, it’s no surprise that Pandemic outbreak<\/b> topped the list as
\nChina was the epicentre of Covid-19 where the virus was first detected at the
\nend of 2019. Business interruption<\/b>
\nis a close second as individual companies and even entire sectors suffered
\nlarge business interruption events during the nationwide lockdown as a result
\nof the pandemic and it’s the largest catastrophic event to hit a modern,
\nglobalised and interconnected economy. <\/p>\n
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In response to heightened BI vulnerabilities, many companies are aiming
\nto build more resilient operations and to de-risk their supply chains.
\nAccording to Allianz Risk Barometer respondents, improving business continuity
\nmanagement is the main action companies are taking (62%), followed by
\ndeveloping alternative or multiple suppliers (45%), investing in digital supply
\nchains (32%) and improved supplier selection and auditing (31%). According to
\nAGCS experts, many companies found their plans where quickly overwhelmed by the
\npace of the pandemic. Business continuity planning needs to become more
\nholistic, cross-functional, and dynamic, monitor and measure emerging or
\nextreme loss scenarios, be constantly updated and tested and embedded into an
\norganization’s strategy. <\/p>\n
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Changes in legislation and regulatio<\/b>n jumps seven positions to tie with business interruption as trade
\nwars and tariffs intensify amidst growing economic sanctions and protectionism. In the last two years, the proportion
\nof Chinese exports to the US subjected to additional tariffs has soared from a
\nnearly insignificant share to over 70%. And the share of US exports to China
\nsubject to tariffs has skyrocketed, from 2% in February 2018 to more than 50%
\ntwo years later.<\/p>\n
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Market developments<\/b> ranks fourth
\nin both the China (29%) and Global (19%) rankings reflecting the risk of rising
\ninsolvency rates following the pandemic worldwide. According to Euler Hermes, a trade credit
\ninsurance subsidiary of the Allianz Group, there are two clusters of countries, those
\nthat will see a stronger rise in insolvencies in 2020, and those that will see
\na delayed surge in 2021. The bulk of insolvencies will come in 2021 as Euler Hermes’ global insolvency index is expected to hit a record high for
\nbankruptcies, up 35% by the end of 2021, with top increases expected in the US,
\n(up 57% by 2021, compared to 2019), Brazil (up
\n45%), China (up 40%) and core European countries such as the UK (up 43%), Spain
\n(up 41%), Italy (up 27%), Belgium (up 26%) and France (up 25%). <\/p>\n
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Most Asia Pacific
\ncountries are in the first group (China, Japan, South Korea, Taiwan, Hong Kong
\nand New Zealand, with India as key exception) mainly because they were the
\nfirst to be impacted by the Covid-19 outbreak. The earlier economic recovery of
\nthe region will help limit the rise in insolvencies for 2020, but the stricter
\nand\/or longer lockdown measures will also cap the recovery and keep
\ncompanies under pressure up to 2021, when the region will see another rise in
\ninsolvencies. China tops the list and it is followed by Singapore (+39%), Hong
\nKong (+23%), Japan (+13%) and Australia (+11%).<\/p>\n
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Patrick Zeng, CEO
\nof Hong Kong & Greater China & Regional Director of Distribution for
\nAGCS said: “The silver lining to the pandemic and the economic challenges that
\nfollow is that it will likely spark a period of innovation and market
\ndisruption. We anticipate the accelerating adoption of technology, hastening
\nthe demise of incumbents and traditional sectors, giving rise and opportunities
\nto new companies and the way business is done. As a leading partner in risk
\nmanagement we look forward to strengthening our business relationships and
\nfacilitating this transformation.”<\/p>\n
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\u00a0![](\"http:\/\/release-manager.media-outreach.com\/i\/120191\/Allianz-Picture2.jpg\")
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More information on the findings of the
\nAllianz Risk Barometer 2021 is available here:<\/p>\n
\n
<\/p><\/div>\n\n
Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"10th Allianz survey: Pandemic outbreak overtakes Business
interruption as the top risk and Changes in legislation and regulation
jumps seven spots and ties with business interruption to make the top three risks
for businesses in China for 2021 Globally, Pandemic
outbreak rockets to #2 from #17 and is seen as the main cause of business
…<\/p>\n","protected":false},"author":1,"featured_media":11337,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[60],"tags":[],"_links":{"self":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/11593"}],"collection":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/comments?post=11593"}],"version-history":[{"count":0,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/posts\/11593\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media\/11337"}],"wp:attachment":[{"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/media?parent=11593"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/categories?post=11593"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/eodishasamachar.com\/en\/wp-json\/wp\/v2\/tags?post=11593"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}