If you spend your time talking only to people who agree with you, it is easy to consider everyone thinks the same way. It is easy to talk exclusively to other IT people and agree that cyber risks are the largest problem facing the business.

That’s why the new Allianz Risk Barometer report from the global insurance company is so interesting. They asked over 800 risk experts from over 40 countries to rate all the different risks to their organisation, and the report discusses the results and reports by country and region. Cyber risk comes out as “the top long-term risk …” with 33% of risk managers naming it in their list – three times as many respondents as the second most-named concern (business interruption).

They point out that there are significant differences in the top risks in different parts of the world and map these in this infographic (shown below).

Risk management blog imageSource: Alliance Global Corporate & Specialty.

Specifically, on cyber risk they say the following:

“Businesses are more concerned about cyber incidents, which is the top long-term risk and the peril most likely to increase the threat of BI (Business Interruption). Hackers are not the only problem. Operational technology issues also result in major system interruptions.”

Cyber incidents were rated as the number one concern in Canada, the UK and South Africa, in the top three in many other countries and regions and overall the fastest growing concern moving up to 3rd from 5th last year. Compare that with three years ago where it was just 15th on the list with only 6% of respondents mentioning it during the survey.

Download the Report

Get our definitive guide to cloud adoption & risk statistics derived from actual usage data from 23+ million users.

Download Now

We also see differences in risk ratings in different countries, and even when cyber risk is discussed, the major concerns are rated differently by different audiences.

They state:

“Loss of reputation (69%) is the main cause of economic loss for businesses after a cyber incident … followed by business interruption (60%) and liability claims after a data breach (52%).”

It is heartening to see that risk managers are rating cyber risks highly and understand that the issue needs to be addressed, though it the data makes it clear that they are unsure how to address the issues.

A lack of understanding of the complexity of the risks involved (48%) is cited as the main factor preventing companies from being better prepared to combat cyber threats.

This report should drive IT, risk & compliance departments to work together to ensure that risks are evaluated and managed appropriately. I recommend that this report is circulated to risk departments and reviewed thoroughly.

Source: Alliance Global Corporate & Specialty.