Critical infrastructure failures, cyber incidents and business interruption remain the same top risks in South Africa in 2024, according to the Allianz Risk Barometer 2024, the 13th edition to date. Their rankings on the barometers also remain the same as in 2023.
Their rankings on the Barometer also remain the same as in 2023. At the same time, each of these three top risks sees a higher proportion of respondents who selected them in 2024, compared to 2023.
Natural catastrophe risk, however, jumped to the 4th place in 2024, compared to the 7th position, following a series of floods and storms in recent years that were classified as national disasters. Interestingly, climate change risk fell to 7th place in 2024 from the 4th position in 2023.
The top 10 risks in the 2024 Barometer for South Africa are:
|
Rank
|
Risk
|
Percent
|
2023 rank
|
Trend
|
|
1
|
Critical infrastructure blackouts (e.g., power disruption) or failures (e.g., aging dams, bridges, rail tracks)
|
40%
|
1 (36%)
|
-
|
|
2
|
Cyber incidents (e.g., cyber crime, IT network, and service disruptions, malware/ransomware, data breaches, fines, and penalties)
|
39%
|
2 (33%)
|
-
|
|
3
|
Business interruption (incl. supply chain disruption)
|
35%
|
3 (32%)
|
-
|
|
4
|
Natural catastrophes (e.g., storm, flood, earthquake, wildfire, extreme weather events)
|
26%
|
7 (19%)
|
↑
|
|
5
|
Energy crisis (e.g., supply shortage/outage, price fluctuations)
|
26%
|
6 (27%)
|
↑
|
|
6
|
Political risks and violence (e.g., political instability, war, terrorism, coup d’état, civil commotion, strikes, riots, looting)
|
20%
|
4 (27%)
|
↓
|
|
7
|
Climate change (e.g., physical, operational, and financial risks as a result of global warming)
|
18%
|
4 (27%)
|
↓
|
|
8
|
Fire, explosion
|
14%
|
8 (14%)
|
-
|
|
9
|
Theft, fraud, corruption
|
11%
|
New
|
↑
|
|
10
|
Changes in legislation and regulation (e.g., tariffs, economic sanctions, protectionism, Euro-zone disintegration)
|
10%
|
9 (10%)
|
↓
|
|
Source: Allianz Commercial. Figures represent how often a risk was selected as a percentage of all responses for that country. Respondents: 179. Figures don’t add up to 100% as up to three risks could be selected.
|
Global
Worldwide, cyber incidents (36%) are the biggest worry for companies in 2024, followed by business interruption in second place, and Nat CAT in the third position.
The 13th Allianz Risk Barometer incorporates the views of 3,069 respondents from 92 countries and territories. The annual corporate risk survey was conducted among Allianz customers (businesses around the globe), brokers and industry trade organizations. It also surveyed risk consultants, underwriters, senior managers, claims experts, as well as other risk management professionals in the corporate insurance segment of Allianz Commercial and other Allianz entities.
Respondents were questioned during October and November 2023. The survey focused on large, smaller and mid-size companies. Respondents were asked to select the industry about which they were particularly knowledgeable and to name up to three risks they believed to be most important.
Most answers were for large-size companies (>$500m annual revenue) [1,340 respondents, 44%]. Mid-size companies ($100m+ to $500m revenue) contributed 792 respondents (26%), while smaller enterprises (<$100m revenue) produced 937 respondents (30%). Risk experts from 24 industry sectors were featured.