Allianz: Business Interruption is Top Risk for 2015

"One risk can lead to several others."

Allianz’s 2015 Risk Barometer ranks business interruption and supply chain risk as the top business concern for the third year in a row. More than 5000 risk managers and insurance experts in 47 countries participated in the survey.

46% of survey respondents are most concerned about business interruptions, followed by natural catastrophes (30%) and fire and explosion (27%). Concern over cyber (17%) and political (11%) risks rose the most since last year.

“One risk can lead to several others,” says Allianz Global Corporate & Specialty SE CEO Chris Fischer Hirs. “Natural catastrophes or cyber attacks can cause business interruption not only for one company, but to whole sectors or critical infrastructure. Risk management must reflect this new reality.”

Companies most fear that fire/explosion and natural catastrophes will lead to business interruption, but political upheaval is a new concern for 2015. It rose nine places since last year’s survey, and lower oil prices may increase political tension in the biggest oil producing countries, the Risk Barometer says.

Following catastrophes, physical damage is less of a concern to companies than subsequent disruption to production, customers and suppliers, the Barometer reports. The average business interruption claim is already 32% higher than the average direct property damage claim.

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