Loss of profits, the main risk for Spanish companies in 2018
The loss of profits will continue to be the main risk for Spanish companies in 2018. This is what 45% of the experts in our country believe who have participated in the VII Allianz Risk Barometer, published by Allianz Global Corporate & Specialty (AGCS) . The second threat is natural catastrophes, which scales two positions compared to the previous year. “Spanish companies were especially affected by the earthquakes, hurricanes and storms of 2017, which means that natural catastrophes register a significant increase in the Risk Barometer this year,” says Juan Manuel Negro, general director of AGCS Spain.
In the rest of the world, the loss of profits is also considered the main threat to which companies will have to face in 2018. And leads this peculiar classification for the sixth consecutive year, ranking first in 13 countries and in the regions of Europe , Asia-Pacific, Africa and the Middle East. The study shows that companies face a growing number of scenarios, ranging from traditional risks (fires, natural disasters and supply chain disruption) to new detonating factors derived from digitalization and interconnection that normally do not cause damage materials but great economic losses. The failure of essential computer systems, acts of terrorism, political violence, incidents of quality deficiency or unforeseen changes in legislation can lead companies to a temporary or prolonged cessation of activity with devastating effect on their income.
Cyber risks are also worrying, which are in second position in the Allianz Barometer. It is considered the greatest threat in 11 countries and in the region that encompasses the Americas. It also appears as the most underestimated risk and the main long-term risk. The attacks of hackers, the security breaches and the loss of benefits for these causes are feared. In addition, the latest cyber attacks with WannaCry and Petya ransomware contribute. “For the first time, the loss of profits and the cyber risk compete for the first position in the Allianz Risk Barometer, which are risks that are increasingly interconnected,” says Chris Fischer, CEO of AGCS.
Fear of climate change
After a rather catastrophic 2017, natural disasters appear again in the world among the three main risks for companies. In addition, climate change appears for the first time among the top ten positions and the potential for losses for companies is further accentuated by the rapid urbanization of coastal areas.
The risk impact of new technologies is another of the highest in the Allianz Barometer, since companies recognize that innovations such as artificial intelligence or autonomous mobility could lead not only to new opportunities in the future, but also to new responsibilities and greater compensation. On the contrary, the concern of the companies for the development of the markets is lower than 12 months ago.