IT in Manufacturing


Allianz Risk Barometer 2020

March 2020 IT in Manufacturing

Cyber incidents (46% of responses) ranks as the most important business risk in South Africa for the fourth time since the launch of survey in the country in 2016 and for the first time globally in the ninth Allianz Risk Barometer 2020, relegating perennial top peril at a global level, business interruption (BI) (40% of responses) to second place.

Cyber incidents ranked number one in 2016, 2017 and 2018 in South Africa. Awareness of the cyber threat has grown rapidly in recent years, driven by companies’ increasing reliance on data and IT systems and a number of high-profile incidents. Seven years ago, it ranked only 15th with just 6% of responses.

Changes in legislation and regulation (#3 with 29%) and climate change (#6 with 19%) are the biggest climbers globally underlining the US-China trade war, Brexit and global warming as increasing concerns for companies and nations including South Africa. The annual survey on global business risks from Allianz Global Corporate & Specialty (AGCS) incorporates the views of a record 2718 experts in over 100 countries including CEOs, risk managers, brokers and insurance experts.

“The Allianz Risk Barometer 2020 highlights that cyber risk and climate change are two significant challenges that companies need to watch closely in the new decade,” says CEO of AGCS, Joachim Müller. “Of course, there are many other damage and disruption scenarios to contend with, but if corporate boards and risk managers fail to address cyber and climate change risks this will likely have a critical impact on their companies’ operational performance, financial results and reputation.”

Cyber risks continue to evolve

Businesses face the challenge of larger and more expensive data breaches, an increase in ransomware and spoofing incidents, as well as the prospect of privacy-driven fines or litigation after an event.

“Incidents are becoming more damaging, increasingly targeting large companies with sophisticated attacks and hefty extortion demands,” says deputy global head of AGCS, Marek Stanislawski. Five years ago, a typical ransomware demand would have been in the tens of thousands of dollars. Now they can be in the millions.”

Extortion demands are just one part of the picture: companies can also suffer major BI losses due to the unavailability of critical data, systems or technology, either through a technical glitch or cyber-attack. “Many incidents are the results of human error and can be mitigated by staff awareness trainings which are not yet a routine practice across companies,” adds Stanislawski.

Climate change

Climate change rises to its highest-ever position of sixth in South Africa (and seventh globally) in the Allianz Risk Barometer and is already in the top three business risks for the Asia-Pacific region overall, driven by risk management experts in countries and territories such as Australia, Hong Kong, India and Indonesia. An increase in physical losses is the exposure businesses fear most (49% of responses) as rising seas, drier droughts, fiercer storms and massive flooding pose threats to factories and other corporate assets, as well as transport and energy links that tie supply chains together.

Further, businesses are concerned about operational impacts (37%), such as relocation of facilities, and potential market and regulatory impacts (35% and 33%). Companies may have to prepare for more litigation in future – climate change cases targeting ‘carbon majors’ have already been brought in 30 countries around the world, with most cases filed in the US.

“There is a growing awareness among companies that the negative effects of global warming above two degrees Celsius will have a dramatic impact,” says Chris Bonnet, head of ESG business services at AGCS. “Failure to take action will trigger regulatory action and influence decisions from customers, shareholders and business partners. Ignoring climate risk is more costly than grappling with it. Therefore, every company has to define its role, stance and pace for its climate change transition – and risk managers need to play a key role in this process alongside other functions.”

The full Allianz report can be downloaded at https://tinyurl.com/rosgv6a




Share this article:
Share via emailShare via LinkedInPrint this page

Further reading:

Prefabricated data centres for an AI-focused future at the edge
Schneider Electric South Africa IT in Manufacturing
As AI technologies continue to advance, data centres are being pushed to the edge, reshaping their operations to meet daily demands. To meet the relentless demands of AI workloads at the edge, prefabricated data centre solutions offer a scalable, efficient and fast alternative to traditional builds.

Read more...
Quantum computing and its impact on data security: a double-edged sword for the digital age
IT in Manufacturing
Quantum computing is poised to redefine the boundaries of data security, offering groundbreaking solutions while threatening modern encryption’s foundations. For third-party IT providers, this duality presents both a challenge and an opportunity to lead organisations through one of the most significant technological transitions in decades.

Read more...
Next-generation road-legal race car.
Siemens South Africa IT in Manufacturing
Siemens Digital Industries Software has announced that Briggs Automotive Company (BAC) will move to the Siemens Xcelerator portfolio of industry software and use it to develop the next generation of its single-seater road-legal race car, Mono.

Read more...
Cybersecurity at a crossroads
IT in Manufacturing
here’s a growing unease in boardrooms, data centres and cabinet offices across South Africa. It’s not just about economic headwinds or political uncertainty, it’s about something quieter, more technical and yet just as dangerous - the rising tide of cyber threats.

Read more...
Enabling a sustainable industrial organisation
IT in Manufacturing
This article explains the top sustainability trends and key actions that you can leverage to become a more sustainable organisation.

Read more...
Navigating discrete manufacturing in South Africa through digitalisation
IT in Manufacturing
South Africa’s discrete manufacturing sector faces mounting pressure from global competition, fragmented supply chains and outdated infrastructure. In this complex environment, digitalisation is a critical lever for survival, resilience and growth.

Read more...
Africa’s pragmatic approach to AI and how data centres are enabling it
Schneider Electric South Africa IT in Manufacturing
In Africa, the current AI momentum is driven by a fundamental need, building a resilient digital infrastructure that addresses the real-world challenges of the continent’s communities.

Read more...
World first simulation of error-correctable quantum computers
IT in Manufacturing
Quantum computers still face a major hurdle on their pathway to practical use cases, their limited ability to correct the arising computational errors. In a world first, researchers from Chalmers University of Technology in Sweden have unveiled a method for simulating specific types of error-corrected quantum computations.

Read more...
Platform to accelerate supply chain decarbonisation
Schneider Electric South Africa IT in Manufacturing
Schneider Electric has launched Zeigo Hub by Schneider Electric, a powerful new digital platform designed to help organisations decarbonise their supply chains at scale.

Read more...
Future-ready data centres
IT in Manufacturing
The white paper ‘Future-Ready Data Centres’ by Black & Veatch outlines how integrating sustainable design principles not only helps meet ESG goals but also ensures reliability, operational efficiency and business continuity in the face of climate change and growing digital demand.

Read more...









While every effort has been made to ensure the accuracy of the information contained herein, the publisher and its agents cannot be held responsible for any errors contained, or any loss incurred as a result. Articles published do not necessarily reflect the views of the publishers. The editor reserves the right to alter or cut copy. Articles submitted are deemed to have been cleared for publication. Advertisements and company contact details are published as provided by the advertiser. Technews Publishing (Pty) Ltd cannot be held responsible for the accuracy or veracity of supplied material.




© Technews Publishing (Pty) Ltd | All Rights Reserved