2017-01-13

What are your biggest worries about your business in 2017? Perhaps you're ensuring your business is covered should bad weather hit, or you're considering cover for business interruption... just in case? Well, a recent survey of 1,200 people across more than 50 countries reveals what businesses consider their biggest risk factors in the year ahead.

The Top 10 Greatest Risks to Business in 2017

According to Allianz' sixth annual Risk Barometer 2017, the top 10 risks for 2017 are:

1. Business interruption e.g. supply chain disruption and vulnerability

2. Market developments e.g. volatility, intensified competition or market stagnation

3. Cyber incidents e.g. cybercrime or IT failure

4. Natural catastrophes e.g. storm or flood

5. Changes in legislation and regulation e.g. economic sanctions or government change

6. Macroeconomic developments e.g. deflation or inflation

7. Fire or explosion

8. Political risks and violence e.g. war or terrorism

9. Loss or reputation or brand value

10. New technologies e.g. drones or 3D printing

The same report found that the top emerging risks for the long-term future (10 years or more) are cyber incidents (42%), new technologies (40%) and market developments (33%).

Whereas it also states the main risks in 2017 differ depending on business industry, for example the natural catastrophes were seen to be the biggest risk to engineering, construction and real estate companies, but business interruption was the number one concern for transportation companies.

Business Interruption Deemed Biggest Fear

Business interruption has been identified as the main risk to businesses for the last five years, with 37% saying it was one of the three main risks that affects their organisation (45% of large companies and 27% of SMEs). Delving deeper into the study, the main causes of business interruption that are most feared are as follows:

• Fire or explosion - 44%
• Natural catastrophes - 43%
• Supplier failure, lean processes - 33%
• Cyber incidents - 29%
• Machinery breakdown - 29%
• Interdependencies from global networks - 24%
• Product quality incidents - 15%
• Unplanned outage of IT or telecommunications systems - 12%
• Political risks and violence such as war or terrorism - 10%
• Power outage - 10%

Should You Take Out Business Interruption Insurance?

Although in many cases this interruption cannot be anticipated, the correct insurance will ensure your business is protected should the worst happen.

Whether your business has to pause trading because of a fire or a flood, machinery breaking down or there is a power outage, interruption insurance will ensure your cashflow is not affected once business resumes to normal.

If you'd like to learn more about business interruption insurance call our friendly team on 0800 470 4648/0333 202 6240 or compare quotes online by entering a few short details click here