The Biggest Business Risks In 2021

The Biggest Global Business Risks

The Biggest Business Risks Around the World

We live in an increasingly volatile world, where change is the only constant.

Businesses, too, face rapidly changing environments and associated risks that they need to adapt to—or risk falling behind. These can range from supply chain issues due to shipping blockages, to disruptions from natural catastrophes.

As countries and companies continue to grapple with the effects of the pandemic, nearly 3,000 risk management experts were surveyed for the Allianz Risk Barometer, uncovering the top 10 business risks that leaders must watch out for in 2021.

The Top 10 Business Risks: The Pandemic Trio Emerges

Business Interruption tops the charts consistently as the biggest business risk. This risk has slotted into the #1 spot seven times in the last decade of the survey, showing it has been on the minds of business leaders well before the pandemic began.

However, that is not to say that the pandemic hasn’t made awareness of this risk more acute. In fact, 94% of surveyed companies reported a COVID-19 related supply chain disruption in 2020.

Rank (2021) % Responses Risk Name Business Risk Examples Change from 2020
#1 41% Business Interruption Supply chain disruptions
#2 40% Pandemic Outbreak Health and workforce issues, restrictions on movement
#3 40% Cyber Incidents Cybercrime, IT failure/outage, data breaches, fines, and penalties
#4 19% Market Developments Volatility, intensified competition/new entrants, M&A, market stagnation, market fluctuation
#5 19% Legislation/ Regulation Changes Trade wars and tariffs, economic sanctions, protectionism, Brexit, Euro-zone disintegration
#6 17% Natural Catastrophes Storm, flood, earthquake, wildfire
#7 16% Fire, Explosion -
#8 13% Macroeconomic Developments Monetary policies, austerity programs, commodity price increase, deflation, inflation
#9 13% Climate Change -
#10 11% Political Risks And Violence Political instability, war, terrorism, civil commotion, riots, and looting
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