Only 30% consider loss of reputation a business risk.
Business interruption remains the top risk for Singaporean businesses, Allianz Global Corporate & Specialty (AGCS) revealed in a Risk Barometer Report.
About 45% of business owners believe that business interruption, including supply chain disruption and vulnerability, is the top danger for their businesses.
Allianz observed that the same business risk is present in the Asia Pacific region. It is the top risk in Australia and a rising one in Japan.
AGCS chief executive officer Mark Mitchell commented, "The widening web of interconnectivity is changing claims trends. A key trend in Asia is the rise in product recall claims. This risk impacts supply chains and brand value of companies. We’ve had a few large cases in the food and beverage and electronics space, leading to a demand for recall cover."
Following business interruption, loss of reputation or brand value is the second most important concern for business owners at 30%.
Cyber incidents, fire or explosion, macroeconomic developments, and market developments all shared the third spot, with 25% of business owners saying these are top business risks.
Cyber incidents include cyber crime, IT failure, and data breaches. Macroeconomic developments cover austerity programs, commodity price increase, deflation, and inflation.
Market developments may include volatility, intensified competition, M&A, market stagnation, and market fluctuation.
New technologies, which includes the impact of increasing connectivity and artificial intelligence (AI), take up the seventh spot for business worries at 20%.
Around 18% also believe changes in legislation and regulation pose a large risk to their businesses, making it eighth among rankings.
Business owners are also worried about quality deficiencies, serial defects, product recalls at 16%.
The 10th spot for business risks went to natural catastrophes at 14%.
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