Climate and cybersecurity grow among risks for Brazil – 01/16/2024 – Market

Climate change and the increasingly frequent occurrence of extreme events and, with them, natural catastrophes, have placed the topic among the main issues highlighted by executives as those with the potential to disrupt business in 2024.

The perception is contained in research released globally this Tuesday (16) by Allianz Commercial. In Brazil, 68 executives were interviewed.

According to the “Risk Barometer 2024”, business interruption – due to the breakdown of the supply chain, for example – still appears among the most cited problems, but the issue has left first place and continues a downward trend.

Around the world, Allianz research shows that data breaches, information technology disruptions and a rise in ransomware attacks have pushed cyber risks to the top of companies’ concerns this year.

In Brazil, the level of concern about the subject is considered stable compared to the previous year’s survey. Cybersecurity incidents are in second place in the ranking, tied with business interruptions.

According to the Allianz report, the companies’ assessment is that the cyber threat scenario is evolving, leading companies from different industries to look at the topic carefully.

The most relevant movements in this year’s risk ranking relate to climate issues. Natural catastrophes, such as storms, floods, fires and extreme events, were cited by 28% of executives in Brazil, taking the topic from sixth to fourth position.

Worldwide, the topic leads the ranking of concerns in Croatia, Greece, Hong Kong, Hungary, Malaysia, Mexico, Morocco, Slovenia and Thailand, many of which, highlights Allianz, suffered from significant events in 2023, with fires or severe flooding.

Locally, climate change — now in first place in Brazil — was in eighth place the previous year. The topic was cited by 35% of executives, while in 2023 it was a fear of 11%. The trend is upward.

Allianz includes concerns about financial, physical and operational risks arising from global warming in this matter. The research report also points out that companies are still considering pressure from shareholders for a transition to a more sustainable economy.

For Petros Papanikolay, CEO of Allianz Commercial, the survey results for 2024 show problems already faced by companies and some challenges on the table, such as digitalization and the uncertain political environment.

“Many of these risks are already having an impact, with extreme weather conditions, ransomware attacks and regional conflicts expected to further test the resilience of supply chains and business models in 2024,” he says in a note.

The Allianz research report points out that the year 2023 was shaken by conflicts, coups and civil insurgency in different parts of the world, causing concerns about the topic to continue.

Brazil, recalls the publication, “went through an attack on the National Congress after the new election of the leftist Lula da Silva, displacing Jair Bolsonaro.” The day that supporters of the former president attacked the buildings of the Three Powers has just completed one year: it was January 8, 2023.

In the ranking, political risk and violence appear in tenth position. A year ago, the theme was in eighth place. According to the Allianz Commercial barometer, this concern is falling.