One particular concern unites companies around the world: their operations come to a standstill due to force majeure. Business and supply chain interruption, natural disasters and fire and explosion are the key risks faced by companies in 2013, according to a new Allianz survey conducted in 28 countries. Regulatory or market-related changes also represent important business risks. In Germany, industrial companies worry about quality deficiencies and a loss of reputation, while mid-sized enterprises are most concerned about talent shortage and financial resources.
The “Allianz Risk Barometer 2013” survey was conducted at the end of 2012 by Allianz Global Corporate & Specialty (AGCS), the Allianz Group’s center for corporate and industrial insurance. The survey gathered opinions from 529 corporate and industrial insurance experts from across the Allianz Group on the most important risks that companies in particular regions and sectors face in 2013.
“Allianz has been a reliable partner to businesses all over the world for many years. We have in-depth knowledge about the risks that businesses face and we also know which issues they may be underestimating,” says Clement B. Booth, Member of the Board of Management of Allianz SE. “Today’s global companies operate in a complex risk landscape that features traditional risks like fire as well as ultra-modern risks such as supply chain interruptions and cyber crime,” notes Axel Theis, CEO of AGCS.
The Allianz experts rate business and supply chain interruptions as the biggest business risk (46 percent of responses). Choosing to run lean global supply chains to reduce costs, many companies lack alternative suppliers. “The flooding disaster in Thailand showed that business interruption at a key supplier can cause a ripple effect felt across an entire industry,” explains AGCS property insurance expert Volker Münch.