Cyber threats and changes in legislation and regulation, including concerns around Brexit are considered the top risks by UK risk experts – and rank joint first according to the latest Allianz Risk Barometer. Meanwhile, cyber incidents are neck-and-neck with business interruption as the top business risks globally.

A shortage of skilled workers appears in the top 10 UK risks for the first time this year – coming in at number seven, with factors such as Brexit uncertainty, changing demographics and a shallow pool of talent in the digital economy contributing to its rise. Workforce risks also appear for the first time among the 10 top business risks globally at 10; as well as in many countries in Central and Eastern Europe, US, Canada and Australia.

“It’s no surprise to see changes in legislation and regulation as the new top risk in the UK, jointly with cyber threats,” says Tracey Hunt, deputy CEO, Allianz Global Corporate & Specialty (AGCS), UK. “Uncertainty around Brexit along with concerns around a potential increase in the regulatory burden and global trade disputes have made confidence fragile. UK businesses also continue to be occupied by the threat of cyber-attacks. The consequences of a major data beach have never been greater since the EU's General Data Protection Regulation (GDPR) came into force with data breaches potentially now resulting in huge fines.”

“Skilled workforce – and human capital more generally – has become the scarce resource of the digital economy,” says Ludovic Subran, deputy chief economist of Allianz. “Competition is fierce between companies to get new recruits with competencies in artificial intelligence, data science, or ‘frontier risk management’ such as managing cyber or reputational risk as most of these jobs did not exist 10 years ago. Even attractive salaries do not suffice as the pool of recruits with the needed skillset is limited and the urgency to onboard them does not allow for on-the-job training."


Top 10 Global Business Risks for 2019 (Source: Allianz Risk Barometer)

1. Business interruption (including. supply chain disruption)
2. Cyber incidents
3. Fire, explosion
4. New technologies
5. Nat cats and regulation
6. Legislative change
7 Market developments
8. Climate change/weather volatility
9. Loss of reputation or brand value
10. Shortage of skilled workforce

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