Allianz Risk Barometer
The top business risks for 2023
The major business risks for 2023 globally
Overview
Despite positive moves to diversify business models and supply chains since Covid-19, businesses continue to experience significant disruption around the world. The pandemic came as a massive shock to business models, creating global shortages, delays and higher prices, while the war in Ukraine triggered an energy crisis, particularly in Europe, turbo-charging inflation.
Unsurprisingly, given the current ‘permacrisis’, business interruption and supply chain disruption ranks as the second top risk in this year’s Allianz Risk Barometer (34%). It is second only to cyber incidents (by just a few votes, also on 34%), whose top position reflects the importance of today’s digital economy, the evolving threat from ransomware and extortion, as well as geopolitical rivalries and conflicts increasingly being played out in cyber space. Cyber risk and business interruption (BI) are closely linked with cyber also ranking as the cause of BI companies fear most.
Indeed, the results show that a number of BI-related risks have climbed this year’s rankings as the new economic and political consequences of the world in the aftermath of Covid-19 and the Ukraine war take hold. These include the impact of the energy crisis, a new entry in the 2023 survey at #4, while macroeconomic developments, such as inflation and potential recession, peaks at #3 – its highest position since the first Allianz Risk Barometer in 2012. Political risks and violence is another new entry in the top 10 global risks at #10, shortage of skilled workforce rises to #8, while outside of the top 10, the prospect of critical infrastructure blackouts or failures (#12) is also of more concern to respondents than 12 months ago. Conversely, pandemic outbreak plummets down the list of concerns (#4 in 2022 to #13 in 2023) as vaccines have brought an end to lockdowns and restrictions in most major markets. The exception? China sees pandemic risk rise year-on-year (from #9 to #3) – the only country in the survey to do so – following its recent easing of long-in-place restrictions.
What keeps business leaders up at night?
Global risks in focus
Methodology
The 12th Allianz Risk Barometer incorporates the views of 2,712 respondents from 94 countries and territories. The annual corporate risk survey was conducted among Allianz customers (businesses around the globe), brokers and industry trade organizations. It also surveyed risk consultants, underwriters, senior managers, claims experts, as well as other risk management professionals in the corporate insurance segment of both AGCS and other Allianz entities.
Respondents were questioned during October and November 2022. The survey focused on large- and small- to mid-size companies. Respondents were asked to select the industry about which they were particularly knowledgeable and to name up to three risks they believed to be most important.
Most answers were for large-size companies (>$500mn annual revenue) [1,281 respondents, 47%). Mid-size companies ($250mn to $500mn revenue) contributed 519 respondents (19%), while small-size enterprises (<$250mn revenue) produced 912 respondents (34%). Risk experts from 23 industry sectors were featured.
Ranking changes in the Allianz Risk Barometer are determined by positions year-on-year, not percentages.
All currencies listed in the report are in US$ unless stated.
Countries and industry sectors need at least 15 respondents to feature in the Allianz Risk Barometer Appendix results document.
Download the 'Allianz Risk Barometer 2023'
Further information
Previous reports
Allianz Risk Barometer 2013 to 2023
The most important business risks in the last 10 years - globally
Source: Allianz Global Corporate & Specialty
Webinar
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Global media call introducing Allianz Risk Barometer 2023
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