News Africa27 Jan 2020

South Africa:'Cyber incidents' heads Top 10 risks

| 27 Jan 2020

The cyber incident category has risen to become the top risk in South Africa this year, according to the latest business risk barometer published byAllianz Global Corporate & Specialty (AGCS). It displaces business interruption, which was ranked as the biggest risk in 2019.

Companies in South Africa remain worried about changes in legislation and regulation, which stays at third place.

AGCS Africa CEO Thusang Mahlangu said that the top risks in South Africa match the top three global risks, which shows African businesses have similar concerns as other companies around the world.

Based on the responses of 78 respondents, the biggest risks to South African businesses in 2020 are:

2020

rank

Percent

Risk category

2019 rank

Percent

Trend

1

46%

Cyber incidents (e.g. cyber crime, IT failure/outage, data breaches, fines and penalties)

2

35%

2

40%

Business interruption (incl. supply chain disruption)

1

41%

3

29%

Changes in legislation and regulation (e.g. trade wars and tariffs, economic sanctions, protectionism, Brexit,

Euro-zone disintegration)

3

28%

-

4

27%

Fire, explosion

6

18%

5

23%

Critical infrastructure blackouts (eg. disruption of power)

New

New

 

6

19%

Climate change/increasing volatility of weather

8

15%

7

17%

Macroeconomic developments (e.g. monetary policies,

austerity programs, commodity price increase, deflation, inflation)

New

New

 

8

15%

New technologies (e.g. impact of artificial intelligence,

autonomous vehicles, 3D printing, Internet of Things,

nanotechnology, blockchain)

5

19%

9

13%

Natural catastrophes (e.g. storm, flood, earthquake)

9

13%

-

10

10%

Market developments (e.g. volatility, intensified competition/new entrants, M&A, market stagnation, market fluctuation)

4

22%

Key: Risk higher than in 2019 Risk lower than in 2019

(Figures don't add up to 100% as up to three risks could be selected.)

The business risk barometer ranks the risks that businesses around the world, including South Africa, see to be the biggest to their operations over the next 12 months.

Worldwide, the barometer reflects the views of 2,718 experts in over 100 countries including chief executives, risk managers, brokers and insurance experts. The top three risks globally are: cyber incidents, business interruption and changes in legislation and regulation.


 

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