The annual Allianz Risk Barometer identifies top business threats based on the insight of risk management experts from the UK and around the world. Here we look at the threats ranked most important by UK respondents.
Cyber incidents and changes in legislation are ranked joint first. Concern about cyber incidents is stable and every few months we get more examples of virtual disasters that cost affected businesses thousands to recover, action, compensate customers and promotional activities to help retain customers.
Brexit is a significant contributory factor for changes in legislation and regulation, market volatility and developments. Since it’s unclear what deal will be accomplished before the UK exits the EU (and whether it will be postponed or even cancelled), some businesses are stockpiling as fears escalate about the consequences of ‘crashing out’.
For similar reasons, concerns about business interruption is in third place, amid concerns about possible supply chain disruption in connection with Brexit and the ongoing deadlock.
Technological developments, such as autonomous machinery, AI and 3D printing, are spurring concerns that workforces and business aren’t keeping up with new manufacturing processes. Business leaders are becoming increasingly fretful about a shortage of skilled workforces.
Natural catastrophes are seventh place whilst fire and explosion, has crept up from ninth to share seventh position. Those watching the Grenfell Tower inquiry are aware that action needs to be taken to address a wide range of problems relating to fire safety.