Trends in Risk Management: The Allianz Risk Barometer 2024
The top three risks in the 2024 survey are:
- Cyber risks: The top risk for the third consecutive year, with 38% of respondents citing it as their most important risk. This is driven by the increasing sophistication of cyber threats and the growing reliance of businesses on digital technologies.
- Natural catastrophes: The second most important risk, with 31% of respondents citing it as their most important risk. This is driven by the increasing frequency and intensity of extreme weather events such as hurricanes, floods, and droughts.
- Changes in legislation and regulation: The third most important risk, with 29% of respondents citing it as their most important risk. This is driven by the increasing number of regulations and the growing complexity of regulatory environments.
The Allianz Risk Barometer also found that the following risks are on the rise:
- Climate change: The top risk for large companies (ranking #4, its highest ever position), is the top risk in Brazil and Turkey, and ranks higher year-on-year in many countries such as France, Germany, Italy, Nigeria, Singapore, Spain, UK and the US.
- Regulatory and political risks: Despite vows to reduce bureaucracy and red tape, companies will still face new rules and regulations in 2024 that will not only require a high administrative burden but could also impose restrictions on their business activities.
- Geopolitical risks: With the rise of protectionism, trade disputes, and geopolitical tensions, companies are increasingly concerned about the impact of these risks on their businesses.
The surveys findings highlight the need for businesses to adopt a proactive approach to risk management. This includes:
- Identifying and assessing their risks
- Developing mitigation strategies
- Putting in place effective risk management processes
- Maintaining a regular review of their risk management strategies.
Click here to download the 2024 report