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Business interruption, cyber incidents and the pandemic top risks for Singapore businesses in 2022: poll
BUSINESS interruption, cyber incidents and the pandemic outbreak are top risks for Singapore businesses in 2022, according to the Allianz Risk Barometer released on Tuesday (Jan 18).
The survey, which polled 2,650 people worldwide, found that 53 per cent saw business interruption as a risk in 2022, securing its position as top risk for the fourth consecutive year. Meanwhile, cyber incidents and the pandemic outbreak tied with 42 per cent.
This was followed by “fire, explosion” and “natural catastrophes” which garnered 23 per cent and 18 per cent respectively.
According to the survey, the fear of cyber incidents reflects not only the rise in ransomware attacks, but also companies’ growing reliance on digitalisation as they shift to hybrid working. Last year, Singapore banks took a look at the vulnerability of technology, after DBS’s online banking services went down for 2 days in November and OCBC phishing scams led to about 469 people losing a total of at least S$8.5 million.
Allianz also noted that the supply chain disruption brought about by the pandemic will likely persist into the second half of 2022.
“Although mismatches in global demand and supply and container shipping capacity are eventually predicted to ease, assuming no further unexpected developments,” it said.
Allianz Global Corporate & Specialty chief executive Joachim Mueller said: “‘Business interrupted’ will likely remain the key underlying risk theme for this year. Building resilience is becoming a competitive advantage for companies.”
Globally, cyber incidents (44 per cent) tops the barometer, followed closely by business interruption (42 per cent). The pandemic dropped to fourth (22 per cent, down from second), as the majority of companies are less concerned and feel adequately prepared for future outbreaks. Meanwhile, climate change climbs to its highest-ever ranking of sixth (17 per cent, up from ninth).
Allianz noted that in recent years, the frequency and severity of weather events have been increasing due to global warming. For 2021, global insured catastrophe losses were well in excess of US$100 billion – the fourth highest year on record, it added.
“Singapore is in a different geographical location and is very unlikely to face the national flooding emergencies that China or Indonesia go through regularly but Singapore still faces a complex set of challenges, especially around inland flash flooding as seen with the severe flash floods occurring last year,” Allianz said.
In the Asia-Pacific, the top 4 concerns are cyber incidents (40 per cent), business interruption (37 per cent), pandemic outbreak (27 per cent) and natural catastrophes (25 per cent).
Changes in legislation and regulation placed fifth with 22 per cent, also keeping its place among the region’s top 5 risks for the fourth consecutive year.
“In China, continuing crackdown on big Internet companies and the US-China geopolitical rivalry has had widespread pressure on economic activity, ranging from trade to technology and investment. 2022 may likely see further political challenges, as the US heads into mid-term elections and China gathers for an all-important Communist Party Congress,” Allianz said.
Source: https://www.businesstimes.com.sg/global-enterprise/business-interruption-cyber-incidents-and-the-pandemic-top-risks-for-singapore