Allianz Risk Barometer 2022 – Business interruption | #cybersecurity | #cyberattack | #cybersecurity | #infosecurity | #hacker

The pandemic and resulting BI and supply chain disruption has been a wake-up call. Such disruption has raised awareness of the issue at both company and governmental level, triggering reviews of business resilience and critical supply chains. “Awareness has gone beyond risk managementdepartments to become an important issue across the entire company. There is now a desire and willingness among top management to bring greater transparency to supply chains and to work with data to better understand the risks. Momentum has been building and increasingly businesses see resilience as a competitive advantage,” says van der Zwaag. 

According to McKinsey [5], almost two thirds (61%) of organizations it surveyed have increased inventory of critical products over the past 12 months in a bid to improve supply chain resilience. However, more needs to be done. Only 23% of the firms surveyed expanded back-up production sites and just 15% turned to nearshoring or increasing their supplier base. Crucially, while 95% of those surveyed now have formal supply chain risk management processes, just under half of the companies said they understand the location of their tier-one suppliers and the key risks those suppliers face, but only 2% can make the same claim about suppliers in the third tier and beyond.

With greater awareness of the risk, there is also a realization that not all BI risks are easy to insure and to find meaningful capacities, explains Beblo: “Capacity for large business interruption and contingent business interruption risks is currently limited, especially where there is a lack of transparency. The better the transparency and data, the more meaningful capacity we, as insurers, are able to provide. We still see clients where their mapping of supply chain risk is not as detailed as it should be. It is critical to understand the value chain and identify the most important exposures in order to mitigate the risks and create solutions to transfer or reduce the risk.”

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