The tenth annual edition of the barometer, issued recently, is based on the findings of a survey conducted by Allianz Global Corporate & Specialty (AGCS) following interviews of 2,769 specialists and experts from 92 countries and territories. Some of the respondents are Chief Executive Officers, risk consultants, underwriters, senior managers, claims experts in the corporate insurance segment of Allianz Global Corporate & Specialty and other Allianz entities.
The survey was conducted in Croatia before the 29 December devastating earthquake in the Petrinja region.
As many as 54% of the respondents in the country cite the pandemic as the biggest risk, while cyber incidents follow (31%), and changes in legislation and regulations have been stated as a business risk in 26% of the answers. In the previous four years, this was identified as the top business risk, according to this barometer.
The shortage of a skilled labour force is also mentioned as a business risk in 26% of the interviews in Croatia.
Allianz Croatia CEO Daniel Matić was quoted as saying that the impact of the pandemic and the COVID disease on doing business in Croatia is perceived in the same way as in most countries.
Matić speculates that had the survey been conducted after the quakes in Petrinja and Glina, the risk called “Natural catastrophes” would have had climbed to a higher position on the barometer.
Matić underscores the labour shortage as a high risk for doing business in Croatia.
Many industries, including tourism and the ICT sector, are faced with this problem, he said.
The importance of this issue can be seen in the example of the necessary labour force for rapid repair response in the aftermath of the quake in Petrinja, Sisak and Glina, he explained.
“Given the unprecedented disruption caused by the coronavirus outbreak, it is no surprise that business interruption and pandemic outbreak top the 2021 Allianz Risk Barometer,” according to the explanation given on the Allianz Global Corporate & Specialty web site.
“The pandemic is the biggest climber this year (up 15 positions), with cyber incidents ranking a close third. All three risks – and many of the others in this year’s top 10 – are interlinked, demonstrating the growing vulnerabilities and uncertainty of our highly globalized and connected world, where actions in one place can spread rapidly to have global effects. Looking forward, the pandemic shows companies need to prepare for a wider range of business interruption triggers and extreme events than previously. Building greater resilience in supply chains and business models will be critical for managing future exposures.”
The top ten business risks globally identified in the barometer are: Business Interruption, Pandemic outbreak, Cyber incidents, Market developments, Changes in legislation and regulation, Natural catastrophes, as well as Fire and explosion, then Macroeconomic developments, Climate change/increasing volatility of weather, and Political risks and violence.
