Changes in Regulations, Natural Disasters and Cyber Incidents Among Main Business Risks in Croatia

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Allianz has conducted research on the main business risks.

The principal business risks in Croatia this year are frequent changes in the legislative and regulatory framework, according to the latest Allianz research, reports Jutarnji List on January 18, 2018.

According to the results of the research, frequent changes in the legislative and regulatory framework are still the primary nightmare for the business community in Croatia. Namely, 48 percent of the respondents cited this issue as the main risk. Still, the percentage is somewhat lower than last year, when frequent changes to regulations were quoted as the main problem by 57 percent of respondents. Allianz pointed out that only Greece is similar to Croatia in this regard.

The frequent changes in the regulations have been listed for years as one of the leading obstacles to doing business in the country in a number of analyses by Croatian and international researchers. The measures taken by the government, which should improve business conditions in this segment, are yet to produce visible results, and entrepreneurs expect this to be one of the priorities in the government’s reform process, Allianz said.

The second place in the list of risks faced by the business community in Croatia in 2018 belongs to market trends, although that risk has decreased somewhat in comparison with previous years. However, the threat from natural disasters, which jumped to third place in the new research, has increased. Obviously, fires which hit the Adriatic coast last year and the catastrophic floods which threatened parts of continental Croatia a few years ago left their mark on the perception of conditions for doing business in Croatia.

Macroeconomic risks continue to be a significant factor in doing business, but their importance has fallen in comparison to previous years. This is primarily a consequence of fiscal stabilization. One of the new threats which have appeared as one of the top 10 risks is losing reputation and brand value. The list of risks in Croatia also includes climate change as well as cyber incidents.

Business interruptions and cyber incidents are the highest positioned business risks at this year’s Allianz global risk barometer. As much as 42 percent of respondents complained about business interruptions, while 40 percent said they were mostly worried by cyber incidents. While business interruptions held the top position last year as well, cyber incidents jumped from the third place in 2017 to the second place now.

“Cyber ​​incidents are aimed at the foundations of connected economies, which is why they can jeopardize success and even existence of companies of all sizes and from all sectors,” warned Allianz. Major threats are also natural disasters, climate change and new technologies that could significantly change business in the future.

The Allianz’s risk barometer included 1,911 experts from 80 countries.

Translated from Jutarnji List.


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