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Cybercrime has become the top concern among businesses in North America, as the frequency of cyber breaches are increasing

Business Reporter
Reputational damage, cybercrime, disruptive technologies and political uncertainty top the list of global business risks for 2017 according to an Aon Global (Aon) report distributed by their exclusive correspondent office for Zimbabwe, Minerva Risk Advisors. Risk preparedness is at its lowest level in 10 years, Aon said in its Risk Management Survey for 2017.

The first Risk Management Survey was done in 2007. “Trends in economics, demographics and geopolitics along with rapid technology advancements are transforming traditional risks for global businesses, adding new urgency and complexity to old challenges,” Aon said.

“Damage to reputation or brand remained the top ranked risk by businesses. While defective products, fraudulent business practices and corruption continue to be key threats to reputation, social media has greatly amplified their impact, making companies more vulnerable.

Additionally, risks that are traditionally uninsurable are becoming more volatile and difficult to prepare for and mitigate,” Aon added. According to Aon, dramatically rising in the ranks from number nine to number five this year, cybercrime has now joined a long roster of traditional causes that can trigger costly business interruptions.

The global firm said cybercrime has become the top concern among businesses in North America, as the frequency of cyber breaches are increasing and incident response plans have become more complex due to regulation and mandatory disclosure obligations.

Political risk or uncertainties, previously ranked at number 15, re-entered the top 10 risk list at number nine. “At the same time, risk readiness declined from 39 percent in 2015 to the current 27 percent. Interestingly, developed nations that were traditionally associated with political stability are becoming new sources of volatility and uncertainty. This is a concern for businesses, especially those operating in emerging markets,” said Aon.

Aon’s latest 2017 Risk Maps, which covers political risk, terrorism and political violence, said trade protectionism is on the rise while terrorism and political violence ratings are the highest they have been since 2013. ?

“We are living in a challenging new reality for companies of all sizes around the world. There are many emerging influences that are creating opportunity, but at the same time, creating risks that need to be managed,” said Mr Rory Moloney, chief executive officer for Aon Risk Consulting.

“As the risk landscape for commerce evolves, businesses can no longer rely solely on traditional risk mitigation or risk transfer tactics. They must take a cross-functional approach to risk management and explore different ways to cope with these new complexities.”

Minerva Risk Advisors managing director Mrs Lydia Tanyanyiwa however said, “As Minerva we are well placed and fully capacitated to help our clients find solutions to these identified risks through our access to the knowledge base of the 65 000 insurance professionals working for Aon, and the sharing of global best practice policies for managing these risks.”