Dive Brief:
- Cybersecurity risk, including ransomware, data breaches and IT disruptions, remained the top business concern in the U.S. and worldwide over the past year, according to the Allianz Risk Barometer released Wednesday.
- Cyber incidents topped the global list of business risks for the fourth-consecutive year, representing more than 1 in 3 of those surveyed in the report. The margin between the top business risks was the widest ever, with a 7% gap between cyber and business interruption, the second largest global concern.
- The report is based on a survey of almost 4,000 risk management experts in 106 countries and territories. The executive respondents include risk managers, brokers, CEOs and insurance experts.
Dive Insight:
Three in 5 respondents said data breaches were their top cyber concern, followed by 57% fearing attacks on critical infrastructure and physical assets.
Operational resilience has become a key concern among business leaders, in terms of making sure they can maintain operations in the face of a cyberattack as well as other disruptive events.
Business interruption was the second biggest concern globally, in a year when supply chains were heavily stress tested.
The July 2024 disruption of millions of Microsoft computer systems due to a faulty CrowdStrike software update was a real-world example of how and why IT security issues are a major concern among companies across the globe.
“While many organizations strive to implement comprehensive strategies for disaster recovery and business continuity, there remains a concern that contingency plans themselves may be overly dependent on technology, highlighting the need for diverse and adaptable solutions,” Michael Bruch, global head of risk advisory services at Allianz Commercial, said in the report.
Ransomware was the leading reason for cyber insurance loss and continues to be a major risk concern among businesses. During the first half of 2024, ransomware accounted for 58% of the value of large cyber-related insurance claims, the report found.
In the 2024 study, cyber replaced business interruption as the top risk concern among U.S. companies
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