Australian business executives rate energy price shock and cyber-attacks as their largest concerns in running business; according to the Regional Risks for Doing Business report lead by the World Economic Forum and partnered in publication with Zurich Insurance Group and Marsh & McLennan Companies.

The report highlights the top 5 risks per region around the globe with the top five risks for Australia being:

  • Energy price shock
  • Cyber-attacks
  • Asset bubble
  • Failure of regional and global governance
  • Fiscal crises and failure of critical infrastructure

It’s no surprise that the increase in energy prices has caused enough concern to jump 5 positions since 2016 to the number 1 concern, and it’s no surprise to us that cyber-attacks have come in at number 2 either. Europe, East Asia, Pacific and North America rate cyber-attacks as their number 1 concern, which highlights the global concerns around technology and national governance failures.

Top five risks by region:

RegionRisk #1Risk #2Risk #3Risk #4Risk #5
Latin America and the CaribbeanFailure of national governanceProfound social instabilityUnemployment or underemploymentFiscal crisesState collapse or crisis
North AmericaCyber-attacksData fraud or theftExtreme weather eventsFiscal crisesEnergy price shock
EuropeCyber-attacksAsset bubbleFailure of national governanceFailure of financial mechanism or institutionUnemployment or underemployment
Middle East and North AfricaEnergy price shockUnemployment or underemploymentTerrorist attacksFailure of regional and global governanceFiscal crises
Sub-Saharan AfricaUnemployment or underemploymentFailure of national governanceEnergy price shockFailure of critical infrastructureFiscal crises
EurasiaEnergy price shockInterstate conflictFiscal crisesUnemployment or underemploymentProfound social instability
East Asia and the PacificCyber-attacksUnemployment or underemploymentAsset bubbleEnergy price shockData fraud or theft
South AsiaFailure of national governanceUnmanageable inflationUnemployment or underemploymentFailure of regional and global governanceCyber-attacks

Ultimately this further highlights the need to build robust cyber security and recovery plans in rapidly evolving digital economy.

If you haven’t discussed your options around cyber insurance, we encourage you to speak with your broker today.