Allianz Risk Barometer 2021: outlasting Covid-19 trends reshaping the corporate landscape

21 January 2021 — Daniela GHETU
Allianz Risk Barometer 2021: outlasting Covid-19 trends reshaping the corporate landscape
A Covid-19 related trio of risks - business interruption, pandemic outbreak and cyber incidents - top the Allianz Risk Barometer 2021, the latest edition of the annual survey of risk management experts by corporate insurer Allianz Global Corporate & Specialty. 

Like most major catastrophic event, the Covid-19 outbreak affected not only human beings, but also businesses. Accelerated digitalization was designated as the most impacting trend businesswise by more than half of the experts surveyed in Allianz's Risk Barometer. Remote working follows closely, with half of the respondents identifying it as a long-term game changer for their companies. Other changes seen as having the greatest influence are increased insolvencies, restrictions on travel and reduced business travel, and rising cyber risks. Among the potential threats heightened by the pandemics there are also market and macroeconomic developments and political events and violence. "The economic consequences of the pandemic could fuel further political and social unrest in 2021 and beyond, with potential implications for supply chains and business interruption," AGCS analyst believe.


Source: Allianz Risk Barometer 2021

Figures represent the percentage of answers of all participants who responded (2,769). Figures do not add up to 100 percent as up to three risks could be selected.

As such, about 62% of the respondents in the Risk Barometer believe that setting up or improving business continuity plans should be a priority for all companies, regardless their size. Even before the pandemics crisis has reached its full impact, the rising complexity of global supply chains became a cause of concern for companies. As a result of this experience, about 45% of the respondents expect to develop multiple suppliers and alternative supply chains to prepare for exigencies, in an attempt of increasing resilience.

Source: Allianz Risk Barometer 2021

Figures represent the percentage of answers of all participants who responded (1,100). Figures do not add up to 100 percent as up to three risks could be selected

As far digitalization is concerned, the Risk Barometer authors identified it as a double-edged sword, as besides the obvious advantages, the accelerated digitalization in the aftermath of the outbreak has also intensified cyber-related threats - be it from ransomware attacks or from technical failure or via the supply chain. The threat is increasingly powerful as cyber risks have ceased being just an issue for computers and software, today pervading multiple spheres of life, from cars to factories to smart devices in homes.

The latest Risk Barometer survey summarizes the responses of 2,769 risk management experts from 22 industry sectors. 

For a more detailed look at this year's top risks and country-wise highlights, click here for the Risk Barometer 2021. 
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