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BREXIT AND CYBER THREATS BIGGEST
RISKS TO UK BUSINESSES IN 2019
• 8th annual survey on top business
risks sees record participation of 2,415
experts from 86 countries
• Changes in legislation and regulation,
including concerns around Brexit
and cyber threats are considered the
biggest risks by UK risk experts (joint
#1 with 48% of responses)
• Shortages of a skilled workforce
and climate change are the biggest
climbers in this year’s UK and global
rankings
Cyber threats and changes in legislation
and regulation, including concerns
around Brexit are considered the top
risks by UK risk experts (joint #1 with 48%
of responses), according to the Allianz
Risk Barometer 2019. Cyber incidents
(37% of responses) are neck-and-neck
with Business interruption (BI) (37%
of responses) as the top business risks
globally*.
“It’s no surprise to see changes in
legislation and regulation as the new top
risk in the UK, jointly with cyber threats,”
said Tracey Hunt, Deputy CEO, Allianz
Global Corporate & Specialty (AGCS), UK.
“Uncertainty around Brexit along with
concerns around a potential increase in
the regulatory burden and global trade
disputes have made confidence fragile. UK
businesses also continue to be occupied
by the threat of cyber-attacks. The
consequences of a major data beach have
never been greater since the EU’s General
Data Protection Regulation (GDPR) came
into force with data breaches potentially
now resulting in huge fines.” salaries do not suffice as the pool of
recruits with the needed skillset is limited
and the urgency to onboard them does
not allow for on-the-job training.”
WORKFORCE SKILLS SHORTAGES
ARE A NEW ENTRY INTO
THE TOP 10 UK RISKS
Shortages of skilled workers appears
in the top 10 UK risks - coming in at
number 7 - for the first time, with factors
such as Brexit uncertainty, changing
demographics and a shallow pool of talent
in the digital economy contributing to its
rise. A UK study** found that nine in 10
employers were struggling to recruit the
skilled staff they need, with Brexit set to
make this worse.
Shortage of skilled workforce also
appears for the first time among the 10
top business risks globally at 10; as well as
in many countries in Central and Eastern
Europe, US, Canada and Australia.
“Skilled workforce — and human
capital more generally — has become the
scarce resource of the digital economy,”
says Ludovic Subran, Deputy Chief
Economist of Allianz. “Competition is
fierce between companies to get new
recruits with competencies in artificial
intelligence, data science, or ‘frontier risk
management’ such as managing cyber
or reputational risk as most of these jobs
did not exist 10 years ago. Even attractive GLOBAL RESULTS
CYBER INCIDENTS AND
BUSINESS INTERRUPTION
(BI) TOP GLOBAL RISKS
In the wake of mega data breaches and
privacy scandals, major IT outages and
the introduction of tighter data protection
rules in the European Union and other
countries, cyber risk is now a core concern
for global businesses in 2019 and beyond.
According to the Allianz Risk Barometer
2019, Cyber incidents (37% of responses)
are neck-and-neck with Business
interruption (BI) (37% of responses) as
the top business risks globally. Climate
change (#8 with 13% of responses) and
Shortage of skilled workforce (#10 with
9% of responses) are the biggest climbers
globally. At the same time, companies are
more worried year-on-year about changes
in legislation and regulation (#4 with
27% of responses) resulting in impacts
such as Brexit, trade wars and tariffs. The
annual survey on global business risks
from Allianz Global Corporate & Specialty
(AGCS) incorporates the views of a record
2,415 experts from 86 countries including
CEOs, risk managers, brokers and
insurance experts.
“Companies need to plan for a wide
range of disruptive scenarios and triggers,
as this is where their big exposure lies in
today’s networked society,” says Chris
Fischer Hirs, CEO of AGCS. “Disruptive
risks can be physical, such as fire or
storms, or virtual, such as an IT outage,
which can occur through malicious and
accidental means. They can stem from
their own operations but also from a
company’s suppliers, customers or IT
service providers. Whatever the trigger,
the financial loss for companies following
a standstill can be enormous. New risk
management solutions, analytical tools
and innovative partnerships can help
to better understand and mitigate the
modern myriad of BI risks and prevent
losses before they occur.”
www.agcs.allianz.com
LOCKSMITHJOURNAL.CO.UK | JAN/FEB 2019