Cyber Threats Dominate Business Risks in 2022: Allianz Survey Insights

Cyber Incidents Emerge as Top Business Risk

According to the latest Allianz Risk Barometer survey, cyber incidents have surpassed all other risks to become the number one threat to businesses in 2022. This shift from third place in 2021 is largely attributed to several high-profile data breaches and ransomware attacks last year, such as the Colonial Pipeline incident, which not only disrupted operations but also cost the company $4.4 million to regain control of its systems.

Business Interruption and Natural Catastrophes Follow Closely

Business interruption, a perennial concern, has moved to second place, reflecting the ongoing impact of the COVID-19 pandemic, cyberattacks, and natural disasters. The report highlights the vulnerability of modern supply chains and underscores the need for enhanced resilience and transparency. Meanwhile, natural catastrophe risk has jumped to third place, with global insured losses reaching $112 billion in 2021, according to Swiss Re.

Pandemic Preparedness and Regulatory Changes

Pandemic outbreak risk has fallen to fourth place as businesses feel more prepared for such events. The survey indicates that 80 percent of respondents believe they are adequately or well-prepared. Additionally, changes in legislation and regulation, particularly around big tech and sustainability, are expected to significantly impact businesses in 2022, linking these risks with cyber and climate change concerns.

For businesses, the survey underscores the importance of robust cybersecurity measures, resilient supply chains, and proactive risk management strategies. Staying informed about regulatory changes and investing in preparedness can help mitigate the impact of these evolving risks.