Companies’ Worry In Cybersecurity To Rise In 2024

Cyber incidents such as ransomware attacks, data breaches, and IT disruptions are the biggest worry for companies globally in 2024, according to the Allianz Risk Barometer.

The Allianz Risk Barometer has ranked Business Interruption second, with natural catastrophes, political risks, and violence being the biggest risers in the latest compilation of the top global business risks.

In Africa and the Middle East, cyber incidents have emerged as the most significant concern for businesses in 2023, climbing from the second position in the previous year. This trend highlights the urgent need for organizations to prioritize cyber security measures.

According to Thusang Mahlangu, the Chief Executive Officer of Alliance Commercial South Africa, the rise of cyber incidents as the primary concern for businesses in the region is a clear indication of the evolving threat landscape and the potential impact on businesses.

The report also highlights the shifting dynamics of business risks in the region. Business interruption, which held the third position in 2022, has now moved up to the second spot. This change reflects the growing vulnerability of businesses to disruptions and the need for robust contingency plans.

Furthermore, Macroeconomic developments, which previously held the top spot, dropped to the third position. This shift signifies the changing economic landscape in Africa and the Middle East, as businesses grapple with uncertain market conditions and geopolitical challenges.

Allianz Commercial CEO, Petros Papanikolaou, comments on the findings saying, “The top risks and major risers in this year’s Allianz Risk Barometer reflect the big issues facing companies around the world right now – digitalization, climate change and an uncertain geopolitical environment. Many of these risks are already hitting home, with extreme weather, ransomware attacks and regional conflicts expected to test the resilience of supply chains and business models further in 2024. Brokers and customers of insurance companies should be aware and adjust their insurance covers accordingly.”

Large corporates, mid-size, and smaller businesses are united by the same risk concerns – they are all mostly worried about cyber, business interruption and natural catastrophes. However, the resilience gap between large and smaller companies is widening, as risk awareness among larger organizations has grown since the pandemic with a notable drive to upgrade resilience, the report notes.

Conversely, smaller businesses often lack the time and resources to identify and effectively prepare for a wider range of risk scenarios and, as a result, take longer to get the business back up and running after an unexpected incident.