THE SPECTRE OF BUSINESS INTERRUPTION
Operating in the modern business landscape can be a dangerous and daunting task; companies face a litany of threats to their potential growth and profitability. From SMEs to huge multinational corporations, the spectre of business interruption looms large on the horizon.
Business interruption – including supply chain disruption – is one of the biggest challenges facing companies today. For the fourth year running, it tops the list of global business risks, according to the recent Allianz Global Corporate & Specialty Risk Barometer. Allianz surveyed 800 risk managers and insurance experts across 44 different countries, and found that many companies are in the midst of a change in their risk perception. 2016 is seeing a substantial shift in the risk landscape for many businesses.
Thirty-eight percent of those surveyed felt business interruption was one of the three most important risks companies face in today’s market. Given the nature of the 21st century economy, and the increasingly interconnected corporate environment, many other risks highlighted in the report will also have major repercussions for companies, as well as business interruption implications. Cyber security and geopolitical risks are just two examples.
Apr-Jun 2016 Issue