Risk managers rated cyber risk and business interruption as the top risks facing their organisations in 2023, according to a survey by the insurer Allianz.

Almost neck and neck in its annual survey, the report said that the two threats are closely related. “Cyber risk and business interruption are closely linked, with cyber also ranking as the cause of business interruption companies fear most,” it said.

Inter-locked risks

A number of other risks on risk management’s radar related to business interruption. For instance, both the energy crisis in Europe and macroeconomic development – including inflation and a potential recession – could hit businesses’ ability to operate.

“Companies will need to take systematic precautions to strengthen their economic and physical resilience,” Chris Townsend, member of the board at Allianz, said.

Businesses responded to such threats in 2022 by de-risking supply chains. That included diversifying the number, location and type of suppliers. In addition, many invested in better supply chain risk management. 

“More time and money are being invested into looking into and documenting the supply chain strategies of businesses,” the report said. “Companies that have suffered disruption are now improving transparency and data on supply chain risks.”

Talent

Discussion in boardrooms will centre around talent, according to a survey of executives by the consultancy Protiviti.

Respondents said that finding and keeping talent would be the top risk for 2023. It was the only risk category that executives rated as having “significant impact” – the highest score. In fact, they also said it would be the top risk in 2032 too.

“Even amid an uncertain economy, inflationary conditions and fears of a possible recession over the next 12 months, people, talent and culture issues stand out as critical concerns for the board and C-suite,” the report said.

In addition, executives worried about keeping staff sufficiently trained to be able to take advantage of the changes in artificial intelligences and other technologies that are transforming the workplace.