Allianz: Business interruption, COVID-19 & cyber incident top 2021 risks

Business interruption, the coronavirus pandemic and Cyber incidents are the top three business risks for 2021 with all three being strongly interlinked according to the 10th Allianz Risk Barometer. Dickson Okorie, Team Lead for Claims at Allianz Nigeria Insurance joins CNBC Africa for more.

Wed, 20 Jan 2021 14:42:03 GMT

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AI Generated Summary

The 10th Allianz Risk Barometer reveals the top three business risks for 2021: business interruption, the COVID-19 pandemic, and cyber incidents, emphasizing the critical need for effective risk management strategies.
The global interconnectedness highlighted by the survey underscores the far-reaching impacts of crises like the pandemic outbreak, stressing the importance of proactive risk mitigation measures for businesses worldwide.
In Nigeria, the top risks mirror the global trends, with businesses facing challenges related to the pandemic, cyber incidents, and macro developments. The shift to digitalization has increased vulnerabilities to cyber threats, making cybersecurity a top priority for Nigerian businesses.

The 10th Allianz Risk Barometer has highlighted the top three business risks for 2021 as business interruption, the coronavirus pandemic, and cyber incidents. These risks are strongly interlinked, with the pandemic outbreak being the biggest climb by far in this year's survey. Dickson Okorie, Team Lead for Claims at Allianz Nigeria Insurance, shed light on what businesses need to do to stay ahead of these risks. The risk barometer, a survey conducted by Allianz Global Corporate & Specialty, involved over 2,700 respondents globally, including Allianz customers and risk consultants. The survey aimed to identify the most critical risks facing businesses in 2021. Unsurprisingly, the COVID-19 pandemic has significantly impacted the top risks, leading to business interruption and cyber incidents. Okorie emphasized that the global interconnectedness means that a crisis in one part of the world can have widespread effects, making risk mitigation crucial for businesses worldwide! In Nigeria, the top three risks align with the global findings: the pandemic outbreak, cyber incidents, and macro developments. The lockdown measures implemented due to the pandemic forced businesses to digitalize and adopt remote working, increasing the pressure on technology infrastructure. This shift online has also made businesses more vulnerable to cyberattacks, such as ransomware. As a result, data privacy and cybersecurity have become major concerns for Nigerian businesses in 2021. To manage these future exposures, businesses need to focus on improving their supply chains and enhancing cybersecurity measures. Building resilient supply chains and embracing technology are crucial steps to mitigate risks effectively. Regular assessments of risk management systems and investments in cybersecurity are essential to stay ahead of evolving threats. Okorie emphasized the importance of businesses' adaptability and preparedness in the face of these complex and interconnected risks. By prioritizing risk management and adopting proactive measures, businesses can strengthen their resilience and navigate the challenges of 2021 with confidence.