While the pandemic, which ranked fourth in 2022, was a major driver of business interruption in past years, AGCS reported cyber risks and natural catastrophes are tag-teaming to turn up the fear factor around potential business interruptions in the year ahead.
Property Casualty 360 says the growing size of ransomware demands has been eye-popping — the amount demanded increased more than 500% during 2021’s first half — but the ability to grind an operation to a halt while systems and data are locked down can be even more costly.
In addition to ransomware, the growing integration of digital elements in business processes and supply chains along with the shift to remote work are causing more anxiety around cyber events.
As a result, cyber is the biggest driver of concern when it comes to causes for business interruption, according to AGCS. More than half of survey respondents cited it as the number one cause of business interruption their company fears.
“For most organizations, the biggest fear is not being able to produce and deliver their products or services,” Philip Beblo, property industry lead, technology, media and telecoms at AGCS, said in the Risk Barometer 2022 report. “Whether it’s a cyberattack, a flood or a fire affecting a critical business location or supplier, business interruption events can have a very costly and long-lasting impact that can extend well beyond an individual organization.”
The threat from natural catastrophes was cited by 26% of survey respondents as the cause of business interruption their company feared most, AGCS reported. Pandemic outbreaks and major transportation/shipping disruptions ranked third and fourth, respectively.
During 2021, pandemic outbreaks were the most pressing business interruption fear, followed by cyber incidents and natural catastrophes, according to AGCS’s report from last year.
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