The 2016 Allianz Risk Barometer analyzes responses from 44 countries and there are some significant differences in the top 10 risk rankings around the world.
While business interruption (incl. supply chain disruption) remains the top risk year-on-year in the Americas, Asia Pacific and Europe regions, concerns about both macroeconomic developments (austerity programs, commodity price increase, inflation/deflation) and market developments (volatility, intensified competition, market stagnation) top the risk agenda in the Africa & Middle East region, for which the top 10 business risks appear for the first time. Business interruption ranks fifth. Meanwhile political risks (war, terrorism, upheaval) rank higher than in any other region (7). The region is the only one to rank power blackouts (10) in the top 10 risks.
Across the Americas region cyber risk is the biggest mover year-on-year in the top 10 risks, climbing to second position, up 21 percentage points. Theft, fraud, corruption (9) and human error (10) are among the new entries in the top 10 risks, as talent shortage/aging workforce and loss of reputation or brand value drop out.
In the Asia Pacific region market developments ranks as the second top risk, just one percentage point behind business interruption. Businesses are concerned about intensified competition from new market entrants and increasingly competitive pricing in some emerging territories. At the same time businesses are having to adapt in order to service the changing profile and needs of their customer base, as the so-called “millennial” generation comes of age.
Cyber risk is also a big mover, ranking fifth in Asia Pacific after not appearing in the top 10 in 2015. This peril is also a top three risk in the Europe region for the first time, driven by increasing concern in territories such as the UK, where it now ranks as the top risk. Impact of new technologies (9) such as increasing interconnectivity and disruptive innovation appears in the European top 10 risks for the first time.
Top 10 business risks by region in 2016: Africa & Middle East
Top 10 business risks by region in 2016: Americas
Top 10 business risks by region in 2016: Asia Pacific
Top 10 business risks by region in 2016: Europe
To see the full appendix of the top 10 risks per selected countries in each region click here.