Although the pandemic and all its ancillary issues continue to impact markets, COVID-19 is no longer the top fear among business leaders worldwide, according to
Allianz Global Corporate & Specialty's (AGCS) 2022 Risk Barometer report. Cyber risks now reign as the most pressing concern, topping even broken supply chains. More than 40% of business leaders said cyber is the top risk, followed by business interruption. However, the latter is influenced by the former as cyberthreats drive the
most fear around the potential for business interruption. Natural catastrophes also weigh heavily when it comes to business interruption concerns,
according to AGCS. "'Business interrupted' will likely remain the key underlying risk theme in 2022," AGCS CEO Joachim Mueller summarizes. "For most companies, the biggest fear is not being able to produce their products or deliver their services. 2021 saw unprecedented levels of disruption, caused by various triggers. Crippling cyber-attacks, the supply chain impact from many climate change-related weather events, as well as pandemic-related manufacturing problems and transport bottlenecks wreaked havoc. This year only promises a gradual easing of the situation, although further Covid-19-related problems cannot be ruled out. Building resilience against the many causes of business interruption is increasingly becoming a competitive advantage for companies."
Skilled labor shortage
For the first time, the shortage of skilled labor in the workforce became a top 10 risk, as retaining and attracting workers "has rarely been more challenging," according to AGCS. The risk is more pronounced in engineering, construction, real estate, public service and health care industries. Skilled labor shortages ranked as the top risk in the transportation sector. It is estimated that 85 million — roughly the population of Germany — jobs could go unfilled because there aren't enough skilled workers to fill them, according to Korn Ferry. This is projected to result in an $8.5 trillion loss of economic opportunity. Related:
