Allianz Risk Barometer 2023: Cyber incidents the second biggest risk for companies

The Allianz Risk Barometer gives us an annual insight into the biggest risks facing companies. In 2023, cyber incidents were in second place. Cyber risks already occupied this position in the previous year, trumped only by business interruption.

Cyber incidents as a major risk in the Allianz Risk Barometer

The Allianz Risk Barometer summarizes all risks that can occur digitally under cyber incidents. These include IT failures, data breaches and, of course, attacks by hackers using ransomware.

According to the Allianz Cyber Center of Competence, the average cost of a data breach for a company is currently around USD 4.35 million. In 2024, this figure could rise to 5 million US dollars.

However, concerns about cyber incidents in companies have led to many companies ensuring better cyber security and being prepared for attacks and data leaks. This is mainly because cyber criminals never sleep and are constantly developing new methods to access data or hack and blackmail companies.

However, Shanil Williams, AGCS Board Member and Chief Underwriting Officer Corporate, says: "Small and medium-sized businesses tend to underestimate their exposure and should continually invest in strengthening their cyber defenses."

While large companies are already well prepared and can fend off most cyberattacks, the situation is still different in the SME sector. The shortage of skilled workers is also likely to play a role here. There are not enough IT specialists for all companies.

The risk of cyber incidents also plays a direct role in other risks listed in the Allianz Risk Barometer.

The risks in the Allianz Risk Barometer 2023

The result of the Allianz Risk Barometer is based on a survey conducted by Allianz with 2,712 experts in 94 countries. The figures do not only relate to German companies, but are valid globally.

At 46%, business interruption ranks first in the Allianz Risk Barometer 2023. This makes sense, as an interruption to ongoing sales means that everything comes to a standstill, no production takes place, no money is generated and insolvency is imminent.

However, a business interruption usually depends on external factors. Therefore, although the first place is justified, all of the following risks are basically the causes of business interruptions.

At 40%, cyber incidents are in second place. Cyber attacks can quickly lead to a business interruption if, for example, the data on internal computers is tampered with. IN 2021, a hacker group paralyzed around 1,000 companies at the same time by hacking into the IT provider and shutting down their services.

In third place with 32% is the energy crisis, which is causing problems for many companies. Prices are rising and there is no telling how high they will go. At the same time, many companies are dependent on certain suppliers. Bottlenecks, disruptions and interruptions in supplies of gas from Russia, for example, lead to business interruptions and therefore once again to risk number 1.

Other risks in the Allianz Risk Barometer 2023 include legal changes, natural disasters and the shortage of skilled workers.

Organizing the company better with skill it

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