Aside from political uncertainty, a tough local and global economy and increasing cyber threats, South African businesses\u00a0are now also stressing about the weather\u00a0in 2017.<\/p>\n
This is according to the latest Allianz Risk Barometer for 2017, which gauges the biggest worries\u00a0and risks faced by businesses across the globe.<\/p>\n
Globally, businesses are becoming increasingly worried about the unpredictability of the global business environment, following a few surprises that cropped up in 2016 with Britain’s decision to exit the EU, and the US electing Donald Trump as president.<\/p>\n
“Companies worldwide are bracing for a year of uncertainty,” said CEO of Allianz Global Corporate & Specialty, Chris Fischer Hirs, (AGCS).<\/p>\n
“Unpredictable changes in the legal, geopolitical and market environment around the world are constant items on the agenda of risk managers and the C-suite.”<\/p>\n
South African businesses are no exception to this; however, the local risk landscape has other things to consider, with natural catastrophes making its debut among the ten biggest risks companies face in the country.<\/p>\n
While South Africa isn’t known for extreme weather, the past year has seen a lot of damage done by hail storms and flash flooding – but taking the prime spotlight is the severe drought which battered the country’s agricultural sector in 2016.<\/p>\n
Natural disasters are a big worry, but only ranks\u00a0as the 7th biggest stress among SA businesses. Cyber incidents – such as cyber crime, data leaks and IT failure – still ranks supreme, with 30% of companies ranking it as the top worry for the year.<\/p>\n
\u201cCyber incidents costs the South African economy around R35 billion annually, with the most common threats being from hackers, disgruntled employees, negligence and competitors – so (it’s no) surprise to see this risk ranked first in the country for the second year in a row,\u201d said Nobuhle Nkosi, Head of Financial Lines AGCS Africa.<\/p>\n
South Africa also continues to face macroeconomic challenges\u00a0–\u00a0including low commodity prices, the Chinese slowdown, and the tightening of US monetary policy – while also suffering from its own internal pressures such as inflation, weak domestic demand and socio-political tensions, Nkosi said.<\/p>\n
These are the 10 biggest risks companies face in 2017<\/strong><\/p>\n\n\n
\n #<\/th>\n Risk<\/th>\n 2017<\/th>\n 2016<\/th>\n<\/tr>\n \n 1<\/td>\n Cyber incidents<\/td>\n 30%<\/span><\/strong><\/td>\n 42%<\/td>\n<\/tr>\n \n 2<\/td>\n Business interruption<\/td>\n 29%<\/span><\/strong><\/td>\n 32%<\/td>\n<\/tr>\n \n 3<\/td>\n Macroeconomic developments<\/td>\n 28%<\/span><\/strong><\/td>\n 26%<\/td>\n<\/tr>\n \n 3<\/td>\n Market developments<\/td>\n 28%<\/span><\/strong><\/td>\n 21%<\/td>\n<\/tr>\n \n 5<\/td>\n Changes in legislation and regulation<\/td>\n 25%<\/span><\/strong><\/td>\n 16%<\/td>\n<\/tr>\n \n 6<\/td>\n Fire, explosion<\/td>\n 21%<\/span><\/strong><\/td>\n 16%<\/td>\n<\/tr>\n \n 7<\/td>\n Natural catastrophes<\/td>\n 17%<\/strong><\/td>\n New<\/em><\/td>\n<\/tr>\n \n 7<\/td>\n Political risk and violence<\/td>\n 17%<\/span><\/strong><\/td>\n 16%<\/td>\n<\/tr>\n \n 9<\/td>\n Talent shortage<\/td>\n 16%<\/strong><\/td>\n New<\/em><\/td>\n<\/tr>\n \n 10<\/td>\n New technologies<\/td>\n 14%<\/span><\/strong><\/td>\n 16%<\/td>\n<\/tr>\n<\/tbody>\n<\/table><\/div>\n<\/div>\n
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