Potential cyber attacks have risen to become the third biggest risk for UK businesses, according to the Allianz Risk Barometer 2015.
Fear of cyber attack has moved up from seventh place in last year’s survey, while business and supply chain disruption is in first place, followed by loss of reputation or brand value, which has risen seven places.
Globally, business and supply chain disruption, natural catastrophes and fire and explosion remain the top three risks for businesses.
Allianz said the hacking attack on Sony Pictures demonstrated cyber crimes can lead to reputational damage and the risk was evolving, with the amount of malicious software for Android devices having increased by 400 per cent since 2012.
Many firms are underestimating the different impacts of cyber risks, while budget constraints were another reason companies were not better prepared, according to Allianz.
Globally almost half of firms (46 per cent) said business and supply chain interruption was their biggest risk - with cyber security in fifth - and Allianz said the average insurance claim connected to this was $1.36 million (£896,000).
Chris Fischer Hirs, CEO of Allianz Global Corporate & Speciality, said: “The growing interdependency of many industries and processes means businesses are now exposed to an increasing number of disruptive scenarios. Negative effects can quickly multiply. One risk can lead to several others. Natural catastrophes or cyber attacks can cause business interruption not only for one company, but to whole sectors or critical infrastructure.”
Top 10 global risks for 2015:
1. Business and supply chain interruption
2. Natural catastrophes
4. Changes in legislation/regulation
5. Cyber crime
6. Loss of reputation/brand value
7. Market stagnation/decline
8. Intensified competition
9. Political/social upheaval
10. Theft, fraud and corruption