Cairo – July 9, 2024: In its latest Risk Barometer report, Allianz surveyed risk management experts across the world in the technology, media, and telecommunications (TMT) sector, determining the sector’s biggest business risks for 2024.
Leading the conversation globally were cyber incidents - defined as cybercrime, IT network and service disruptions, malware/ransomware, data breaches, fines, and penalties.
In the Middle East and Africa region, the report revealed that respondents ranked cyber incidents as the biggest business risk with 33 percent of votes, followed by business interruptions (e.g. supply chain disruption) with 22 percent.
Macroeconomic developments (e.g., inflation, deflation, monetary policies), critical infrastructure blackouts, and changes in legislation and regulation completed the top 5 challenges in the region.
“Given TMT companies hold large amounts of personal information which can be a prime target for criminals and can be either sold on the dark web or used for fraud or to extort the victim for ransom, it is unsurprising that cyber incidents is a top concern,” the company explained in a statement.
The top ranked global challenge was cyber incidents according to 36 percent of survey respondents, followed by business interruption (31 percent), and natural catastrophes (26 percent).
Business interruption is the main cost driver for more than 50 percent of cyber claims globally, Allianz Commercial analysis showed, and is a significant driver for the rising severity of claims in recent years.
Allianz also explained that “given the large number of devices connected to a company’s network, ensuring adequate protection can prove to be an extremely challenging task, particularly for smaller-sized companies, and requires deep expertise and an individualized approach”.
“The long-term future outlook is positive, yet with such a rapid pace of change comes new risks, complexity, heightened regulatory scrutiny and increasingly global exposures,” it added.
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