- Companies identify Business interruption as their top business concern for the year ahead (37% of overall responses)
- Cyber ranks #2 (31%), with data breaches identified as the cyber exposure companies fear most
- Natural catastrophes retain #3 rank (27%) in Asia, which is heating up faster than the global average
SINGAPORE – Media OutReach Newswire – 15 January 2025 – Business interruption is the biggest worry for Asian companies in 2025, according to the Allianz Risk Barometer. Cyber incidents such as data breaches or ransomware attacks, and IT disruptions, such as the CrowdStrike incident, are also a main concern for companies of all sizes, ranking #2. After another heavy year of Natural catastrophes activity in 2024 this peril remains #3.
The top three risks globally – Cyber incidents (#1), Business interruption (#2), and Natural catastrophes (#3) – retained their positions in this year’s Allianz Risk Barometer, which is based on the insights of more than 3,700 risk management professionals from over 100 countries.
Allianz Commercial Chief Underwriting Officer Vanessa Maxwell comments: “2024 was an extraordinary year in terms of risk management and the results of our annual Allianz Risk Barometer reflect the uncertainty many companies around the globe are facing right now. What stands out this year is the interconnectivity of the top risks. Climate change, emerging technology, regulation and geopolitical risks are increasingly intertwined, resulting in a complex network of cause and effect. Businesses need to adopt a holistic approach to risk management and consistently strive to enhance their resilience in order to address these fast-evolving risks.”
Christian Sandric, Regional Managing Director of Allianz Commercial Asia, says, “Business interruption is the most significant risk for companies in the region and this is no surprise as Asian economies are increasingly participating in trade globally and regionally. This is also often due to events like cyber incidents or natural catastrophes, which are part of the top risks in the region. Against this backdrop of an increasingly volatile risk landscape, businesses should ensure they are sufficiently protected and their response measures robust. This includes adopting measures such as loss prevention, developing multiple suppliers, alternative risk transfer, and multinational insurance policies.”
Business
interruption
strongly
interlinked
with
other
risks
Business
interruption
(BI)
is
the
top
risk
in
Asia;
it
ranks
in
the
top
three
risks
in
all
countries
and
territories,
and
is
the
top
risk
in
China
and
Hong
Kong,
Malaysia,
Singapore,
and
South
Korea.
Its
persistence
at
the
top
reflects
severe
supply
chain
disruption
during
and
after
the
pandemic.
Such disruptions are of particular concern as Asian economies are increasingly participating in trade. Asia is now the world’s second-most integrated trade region, driven by the rapid growth of manufacturing supply chains across borders. In addition, due to rising US-China tensions, bilateral trade between geopolitically aligned countries has risen. Global trade flows are becoming more intricate and this shift has opened doors for nations like India and Malaysia to step up as next-generation trade hubs, according to Allianz Trade.
Globally, BI has ranked either #1 or #2 in every Allianz Risk Barometer for the past decade and retains its position at #2 in 2025 with 31% of responses. BI is typically a consequence of events like a natural disaster, a cyber-attack or outage, insolvency or political risks like conflict or civil unrest, which can all affect the ability of a business to operate normally. Several examples from 2024 highlight why companies still see BI as a major threat to their business model. Houthi attacks in the Red Sea led to supply chain disruptions due to rerouting of container ships, while incidents such as the collapse of the Francis Scott Key Bridge in Baltimore also directly impacted global and local supply chains. Supply chain disruptions with global effects occur approximately every 1.4 years, and the trend is rising, according to analysis from Circular Republic, in collaboration with Allianz and others. Those disruptions cause major economic damages, ranging up to 5% to 10% of product costs and additional downtime impacts.
Cyber
risks
continue
to
increase
with
rapid
development
of
technology
Cyber
incidents
rank
#2
in
Asia;
it
is
the
top
risk
in
India
for
the
eighth
consecutive
year,
and
the
second
most
significant
risk
in
Japan
and
Singapore.
The
Asia
Pacific
region
saw
a
23%
increase
in
weekly
cyberattacks
per
organization
in
Q2
2024,
compared
to
the
same
period
in
2023.
Some
of
the
cyber
incidents
around
the
region
include
the
attack
on
India’s
biggest
crypto
exchange
WazirX,
the
distributed
denial-of-service
(DDoS)
attack
on
Japan
Airlines,
and
cyberattack
on
Singapore
law
firm
Shook
Lin
&
Bok.
Globally, Cyber incidents (38% of overall responses) rank as the most important risk for the fourth year in a row – and by a higher margin than ever (7% points). It is the top peril in 20 countries, including Argentina, France, Germany, India, South Africa, the UK and the US. More than 60% of respondents identified data breaches as the cyber exposure companies fear most, followed by attacks on critical infrastructure and physical assets with 57%.
Natural
catastrophes
remain
a
major
concern
Natural
catastrophes
retain
its
#3
spot
in
Asia.
The
region
is
heating
up
faster
than
the
global
average,
with
increased
casualties
and
economic
losses
from
floods,
storms,
and
more
severe
heatwaves.
It
is
the
top
risk
in
Japan,
which
faced
a
M7.5
earthquake
in
the
Noto
Peninsula
that
resulted
in
insured
losses
of
US$3bn,
with
economic
losses
reaching
US$12bn,
as
well
as
in
Hong
Kong,
which
experienced
its
heaviest
rain
in
November
2024
since
records
began
140
years
ago
due
to
Typhoon
Haikui.
Globally, Natural catastrophes remain at #3 with 29%, although more respondents also picked this as a top risk year-on-year. For the fifth time in a row in 2024, insured losses surpassed US$100bn. 2024 is expected to have been the hottest year on record. It was also a year of terrible natural catastrophes with extreme hurricanes and storms in North America, devastating floods in Europe and Asia and drought in Africa and South America.
Resources:
https://commercial.allianz.com/
https://www.linkedin.com/company/allianz-commercial/
Hashtag: #Allianz
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