Business interruption tops list of risks for Philippine firms

Cyber has yet to take hold as top risk due to low digital adoption

Business interruption tops list of risks for Philippine firms

Insurance News

By Gabriel Olano

Business interruption, followed by natural catastrophes, has topped the list of risks identified by Philippine businesses, according to the Allianz Risk Barometer 2020.

The study was conducted by Allianz Global Corporate & Specialty (AGCS), the global insurer’s corporate insurance arm.

According to a statement, 42% of surveyed executives from the Philippines listed business interruption, which includes supply chain disruption, as the top business risk in the country. Meanwhile, 37% said that natural disasters such as storms, floods, and earthquakes are the top perils.

Cyber incidents, which include cybercrime, IT failure/outage, data breaches, fines, and penalties, ranked third at 32%. This is in contrast to the Asia-Pacific findings of the study, which saw cyber overtake business interruption as the top risk for the first time.

According to Allianz, seven years ago, cyber was ranked way down at 15th globally, with just 6% of responses. This illustrates how reliant today’s economy is on digital technology, and the importance of securing organisations’ cyber security.

However, due to many emerging markets being behind on digital adoption, there is also some lag in identifying risks. As such, business interruption remains the top risk in the Philippines. It should be noted that other countries that identified the same top risk in the Risk Barometer include Austria, Brazil, Canada, China, Colombia, Germany, Indonesia, Italy, Malaysia, Netherlands, Poland, Singapore, and Tanzania – a mix of emerging and mature markets.

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