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The Top 2 Supply Chain Risk Concerns? Many say it’s Political Upheaval and Cybercrime

January 27, 2015
The globalization of today’s economy means that businesses are more interconnected than ever, creating a greater risk of business interruption, supply chain disruption, and exposures that can quickly multiply.

The Allianz Risk Barometer 2015 surveyed more than 500 risk managers and corporate insurance experts in 47 countries to identify the primary challenges facing businesses this year. Some risks such as political upheaval, cybercrime and business interruption were viewed as a greater risk, while natural catastrophes, technological innovation and market stagnation were viewed as having less of an impact.

Business interruption and impacts to the supply chain continued to lead the list of major concerns for businesses for the third year in a row. With so many businesses interconnected on a global scale, the impact of an event in one part of the world can have negative repercussions halfway around the globe.

“The growing interdependency of many industries and processes means businesses are now exposed to an increasing number of disruptive scenarios. Negative effects can quickly multiply. One risk can lead to several others. Natural catastrophes or cyber attacks can cause business interruption not only for one company, but to whole sectors or critical infrastructure,” says Chris Fischer Hirs, CEO of Allianz Global Corporate & Specialty. “Risk management must reflect this new reality. Identifying the impact of any interconnectivity early can mitigate or help prevent losses occurring. It is also essential to foster cross-functional collaboration within companies to tackle modern risks.”

Source: Property Casualty

Tags: Industry Solutions
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