FACING BUSINESSES IN 2018
- by Prof . Allan Manning
Prof . Allan Manning is one of Australia ’ s most academically qualified insurance professionals having lectured at a number of tertiary institutions , delivering over 1,250 papers on insurance and risk management topics . With over 45 years in the industry , Prof . Manning now acts as a client advocate on claims , an expert witness , conducts policy program reviews and drafts insurance wordings . He is currently president of the International Institute of Claims Preparers and has been rated in the top 20 most influential people in Australian insurance for the past 6 years . He was awarded the Life Time Achievement Award at the 2012 Insurance Industry Awards and honorary life membership of the Australian and New Zealand Institute of Insurance and Finance .
Each year an independent assessment is conducted to review the top business risks around the world and recently the 2018 results were released .
Based on responses by more than 1,900 risk experts from 80 countries polled , business interruption , cyber-attacks , and natural catastrophes are the leading business risks globally this year .
Business interruption ranks as the most important global risk for the sixth year in a row due to its tremendous effect on revenues . Companies face an increasing number of scenarios – from traditional exposures , such as the physical damage impact of natural catastrophes and fires on facilities and the supply chain , to new triggers stemming from digitalization and interconnectedness . Cyber incidents are the most feared business interruption trigger for the first time . Business interruption is also the main cause of economic loss for businesses after a cyber incident . Cyber business interruption incidents can result from hacker attacks but are more frequently from technical failures and employee error .
Cyber incidents continue an upward trajectory to second most important business risk worldwide . Five years ago , it ranked 15th . Like a natural disaster , an attack can potentially impact hundreds of companies and incidents have escalated . Socalled “ cyber hurricane ” events , where hackers disrupt large numbers of companies through common internet infrastructure dependencies , are increasing .
Looking a little closer to home , the assessment reveals that cyberattacks and business interruption remain the leading two risks in Australia and New Zealand . What remains disappointing is that both cyber and business interruption coverage is often not taken out by many small to medium enterprises , commonly at their peril .
I continue to urge all business owners and managers to discuss these and other risks with their Capricorn Risk Services representative to determine the type of cover that is right for their business .
For more information on products available through Capricorn Risk Services , call us on 1800 007 022 and make an appointment to speak with your Risk Account Manager .
Products sold through Capricorn Risk Services Pty Ltd ( ABN 93 111 632 789 ) are : ( i ) discretionary risk protection products issued by Capricorn Mutual Ltd ; and ( ii ) general insurance products issued by a range of insurers and brokered through Capricorn Insurance Services Pty Ltd . Before deciding to acquire any product you should consider the Product Disclosure Statement available from Capricorn Risk Services Pty Ltd to see if the product is appropriate for you . Capricorn Risk Services Pty Ltd is a Corporate Authorised Representative ( No . 460893 ) of Capricorn Mutual Ltd ( AFSL 230038 ) and Capricorn Insurance Services Pty Ltd ( AFSL 435197 ).
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CAPRICORN IGNITION MARCH 2018 15