Top 10 Business Risks of 2021

Business interruptions, like those caused by the ongoing coronavirus pandemic, are the No. 1 risk for businesses in 2021, according to an annual report—10th Allianz Risk Barometer Survey— released by Allianz Global Corporate and Specialty (AGCS), a global corporate insurance carrier.

The report was based on a survey of 2,769 respondents from 92 countries and territories taken late last year. Respondents ranged from small businesses with less than US$250 million in annual revenue to large enterprises with greater than $500 million in annual revenue. All respondents were able to select up to three risks per industry.

The top ten business risk for 2021 were:

1. Business interruption – chosen by 41% of respondents. (Seventh time in 10 years at the top.)
2. Pandemic outbreak – 40% (Previously ranked 17th and also the main cause of business interruption.)
3. Cyber incidents – 40% (Last year’s top risk.)
4. Market developments – 19%
5. Changes in legislation and regulation – 19%
6. Natural catastrophes – 17%
7. Fire, explosion – 16%
8. Macroeconomic developments – 13%
9. Climate change/increasing volatility of weather – 13%
10. Political risks and violence – 11%.

“The Allianz Risk Barometer 2021 is clearly dominated by the COVID-19 trio of risks. Business interruption, pandemic outbreak, and cyber incidents are strongly interlinked, demonstrating the growing vulnerabilities of our highly globalized and connected world,” said Joachim Müller, CEO of AGCS, in a news release. “The coronavirus pandemic is a reminder that risk management and business continuity management need to further evolve in order to help businesses prepare for, and survive, extreme events.”