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
- 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:
|Region||Risk #1||Risk #2||Risk #3||Risk #4||Risk #5|
|Latin America and the Caribbean||Failure of national governance||Profound social instability||Unemployment or underemployment||Fiscal crises||State collapse or crisis|
|North America||Cyber-attacks||Data fraud or theft||Extreme weather events||Fiscal crises||Energy price shock|
|Europe||Cyber-attacks||Asset bubble||Failure of national governance||Failure of financial mechanism or institution||Unemployment or underemployment|
|Middle East and North Africa||Energy price shock||Unemployment or underemployment||Terrorist attacks||Failure of regional and global governance||Fiscal crises|
|Sub-Saharan Africa||Unemployment or underemployment||Failure of national governance||Energy price shock||Failure of critical infrastructure||Fiscal crises|
|Eurasia||Energy price shock||Interstate conflict||Fiscal crises||Unemployment or underemployment||Profound social instability|
|East Asia and the Pacific||Cyber-attacks||Unemployment or underemployment||Asset bubble||Energy price shock||Data fraud or theft|
|South Asia||Failure of national governance||Unmanageable inflation||Unemployment or underemployment||Failure of regional and global governance||Cyber-attacks|
Ultimately this further highlights the need 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.