SINGAPORE firms say business interruptions and cyber incidents are the major risks they face this year, a recent survey by Allianz Global Corporate & Specialty (AGCS) shows.

Among the 200 Singapore respondents to the poll, 43 percent selected business interruptions and 42 percent cite cyber incidents as the top risk, exceding fire, and natural catastrophes.

More than 2,000 respondents from 86 countries and regions were polled. The respondents include CEOs, risk managers, brokers, and insurance experts.

“Cyber incidents can cripple a company’s operations and severely impair its ability to deliver its services, yet they are just one of many loss triggers that can result in a business interruption for corporates,” said Volker Muench, Global Practice Leader, Utilities & Services, IT Communication, AGCS. “Business interruption can be a consequence of many of the other top risks in this year’s Allianz Risk Barometer.”

AGCS is the Allianz Group’s dedicated corporate and specialty insurance business.

Business interruptions include events that can bring businesses to a standstill, such as the breakdown of core IT systems, product recalls or quality issues, terrorism, political rioting or environmental pollution.

Said Mark Mitchell, AGCS Asia Pacific regional CEO: “Businesses across the Asia Pacific are deeply concerned about the impact of business interruption, which can be a consequence of the other top risks in the region, cyber and natural catastrophes. The risk of BI is heightened by today’s increasingly interconnected and global business environment.

Both cyber and BI risks are increasingly interlinked as ransomware attacks or accidental IT outages often result in disruption of operations and services costing hundreds of millions of dollars, said AGCS.

 

 

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