For the last several years Allianz has published a concise and informative report on the top risks that businesses face globally. It is a great opportunity to think about how these risks could affect your business operations and what the impact would be. When thinking about risk, it is important to think about "materiality" and what "financial impact" would be material for your company to cause a disruption. Even through many of the risks on this year’s report are readily insurable, the "disruption factor" of having to manage through a loss is worth considering.
The top three (3) risks captured by Allianz are:
1. Business Interruption Risk including Supply Chain disruption
2. Cyber Risk (including business interruption); and
3. Natural Catastrophe Risk including Flood, Earthquake, Wind and now Wildfire.
There are other risks highlighted in this report that are worth thinking about such as Loss of Reputation & Brand Value Risk as well as Shortage of Skilled Worker Risk as all of these which can impact business operations.
Allianz does a nice job explaining these risks in a page or two in the report which can serve to allow executives to consider material risks which can have a significant impact on their organization.
Please contact Al Sica (firstname.lastname@example.org) if you would like to discuss this report or the risks captured and how they might impact you and your organization.