‘Cyber crime tops corporate risks’
Allianz Global in its 2020 Risk Barometer has identified Cyber Crime as topping the corporate risks.
Allianz Gobal has recently released its 2020 Risk Barometer giving insights on the incidences that may likely take place especially in the corporate world in the next 12 months and beyond.
The Allianz Risk Barometer is an annual report identifying the top corporate risks for the next 12 months and beyond, based on the insight of more than 2,700 risk management experts from 102 countries and territories.
The Chief Executive Officer of AGCS, Joachim Müller, While responding to what may likely be the top risks for 2020, said “The Allianz Risk Barometer 2020 highlights that cyber risk and climate change are two significant challenges that companies need to watch closely in the new decade.”
He said “Business interruption ranks second, but remains a key challenge with digitalization and civil unrest creating new causes of disruption and loss of income”
“Climate change rises to its highest-ever position – companies are most concerned about physical losses from extreme weather events but also fear consumer criticism and increasing regulatory and legal action,” he added.
The risk of Cyber incidents, according to him, “have become more damaging and expensive for companies – and often result in lawsuits and litigation after the event”
The report said “Cyber incidents ranks as the top peril for companies globally in the Allianz Risk Barometer for the first time after receiving 39% of responses from more than 2,700 risk management experts in over 100 countries and territories – the largest number of respondents ever.
“Seven years ago cyber risk ranked only 15th with just 6% of responses. Awareness of the cyber threat has grown rapidly in recent years, driven by companies’ increasing reliance on their data and IT systems and a number of high-profile incidents.
“Businesses face a growing number of cyber challenges including larger and more expensive data breaches, an increase in ransomware and business email compromise (spoofing) incidents, as well as the prospect of litigation after an event. Political differences between nation states being played out in cyber space brings added risk complexity, while even a successful merger or acquisition (M&A) can result in systems problems.”
In Nigeria, the Managing Director, Anchor Insurance Company Limited, Austine Ebose, has recently advised operators to be conscious of risks associated with natural disasters when offering insurance services this year.
