Allianz’s Thusang Mahlangu highlights top risks for SA businesses in 2022

Cyber Crime, business interruption and power disruptions are citied as some of the top risks for business in South Africa in 2022. That’s according to research from Allianz. Thusang Mahlangu, CEO at Allainz Global Corporate & Specialty Africa joins CNBC Africa to unpack some of the themes that are keep South Africa's CEO's up at night.

Wed, 26 Jan 2022 10:52:10 GMT

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AI Generated Summary

Cyber incidents, including ransomware attacks and data breaches, are the top risk for businesses in South Africa, exacerbated by the shift to remote working during the pandemic.
Business interruption, often caused by cyber attacks or supply chain disruptions, is a major concern, leading companies to focus on business continuity plans and stress testing.
The pandemic risk has dropped to the fifth position in 2022, reflecting increased confidence in vaccination rates, but concerns about new variants and potential restrictions remain.

Allianz, a global corporate and specialty company, has identified cyber incidents, business interruption, and power disruptions as the top risks for businesses in South Africa in 2022. These findings were based on research conducted by Allianz. Thusang Mahlangu, the CEO at Allianz Global Corporate & Specialty Africa, joined CNBC Africa to discuss the key themes that are keeping South African CEOs up at night. Mahlangu highlighted the significance of cyber incidents as the top concern for businesses in South Africa. With the shift to remote working during the pandemic, there has been a surge in ransomware attacks, data breaches, and IT outages, which are major threats to businesses heavily reliant on technology. Despite cyber incidents being the top risk in South Africa, it ranks third globally, indicating a potential under-investment by South African companies in cybersecurity compared to their global counterparts. Business interruption, often linked to cyber attacks, is another major concern for South African businesses. The global supply chain disruptions caused by the pandemic have forced businesses to focus on business continuity plans and stress testing to ensure readiness for any future outage or disruption. The pandemic, which was a significant risk for businesses in 2021, has now fallen to the fifth position in 2022. This drop reflects increased confidence in vaccination rates and the belief that the worst of COVID-19 is behind us. However, concerns about new variants, potential restrictions, and lockdowns still linger. Political risk, specifically political violence and terrorism, has moved up the ranks to the fourth position in South Africa. Recent incidents of unrest and civil commotion have heightened concerns among businesses, emphasizing the need for robust business continuity plans to mitigate such risks. Despite these challenges, Allianz remains committed to the African market, with a focus on investments and growth in the region. The company's global operations provide natural diversification and confidence in the African market, with continued investments and strategic acquisitions planned for the future.