Cyber incidents is the top business risk in India for the seventh consecutive year according to the latest Allianz Risk Barometer, compiled by Allianz Commercial, which is Allianz Group’s corporate insurer.
The 13th Allianz Risk Barometer, released last week, shows that businesses in India continue to be most concerned about cyber incidents (#1 with 55%) which has claimed the top spot for the last seven years. According to cyber security firm Cyfirma, India is the most targeted country globally, facing 13.7% of all cyber attacks.
Mr CB Murali, CEO of Allianz Commercial India, said, “Companies in India have to view cyber security as a foundational wing of business operations and continuously adapt to adopt the best practices. Unfortunately, cyber perils are often underestimated by businesses, especially SMEs and startups. The trends of attacks we see are proof that these cyber incidents are happening at a greater frequency and severity, therefore calling for businesses to improve their cyber hygiene in an era of ever-deepening reliance on digital technology.
Business interruption such as supply chain disruptions ranks as the second topmost risk, while natural catastrophes such as floods and extreme weather remains the third highest risk. Climate change and Fire & explosion are the 4th and 5th biggest worries for Indian businesses in 2024.
Mr Murali said, “We foresee a clearer interplay between climate change, natural catastrophe, and business interruption risk triggers, and believe all these factors will be of significant focus for risk managers in India, as well as in the rest of the world.”
The top 10 business risks in India in 2024 are:
|
2024
Rank
|
Risk
|
2024
Percent
|
2023
Rank
|
Ranking
Trend
|
|
1
|
Cyber incidents
|
55%
|
1 (51%)
|
–
|
|
2
|
Business interruption
|
38%
|
2 (35%)
|
–
|
|
3
|
Natural catastrophes
|
33%
|
3 (25%)
|
–
|
|
4
|
Climate change
|
18%
|
3 (25%)
|
↓
|
|
5
|
Fire, explosion
|
17%
|
9 (11%)
|
↑
|
|
6
|
Changes in legislation and regulation
|
17%
|
3 (25%)
|
↓
|
|
7
|
New technologies
|
16%
|
New
|
↑
|
|
8
|
Market developments
|
15%
|
New
|
↑
|
|
9
|
Political risks and violence
|
14%
|
6 (16%)
|
↓
|
|
10
|
Loss of reputation or brand value
|
9%
|
New
|
↑
|
|
Source: Allianz Commercial. Figures represent how often a risk was selected as a percentage of all responses for that country.
Respondents: 132. Figures don’t add up to 100% as up to three risks could be selected
|
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Globally, the top three risks in descending order are: cyber incidents (eg. ransomware attacks, data breaches, and IT disruptions), business interruption (including supply chain disruption) and natural catastrophes (eg. storm, flood, earthquake, wildfire, extreme weather events).
The 13th Allianz Risk Barometer incorporates the views of 3,069 respondents from 92 countries and territories. The number of respondents in India was 132. The annual corporate risk survey was conducted among Allianz customers (businesses around the globe), brokers and industry trade organizations. It also surveyed risk consultants, underwriters, senior managers, claims experts, as well as other risk management professionals in the corporate insurance segment of Allianz Commercial and other Allianz entities.
