Cyber risks are the business interruption companies fear most, according the recently published Allianz Risk Barometer – an annual business risk ranking compiled by Allianz Group’s corporate insurer Allianz Global Corporate & Speciality (AGCS), together with other Allianz entities, which incorporates the view of 2 712 risk management experts in 94 countries and territories including CEOs, risk managers, brokers, and insurance experts.

The Barometer highlighted that business interruption was the greatest concern globally and that cyber risks were highlighted by 45% of respondents as the number-one BI concern.

Natasha Parry, GM of SATIB Insurance Brokers, told Tourism Update that cyber risks (or cyber incidents) were the second-highest concern for the South African travel and tourism industry, with critical infrastructure blackouts.

Business Interruption was highlighted as the third risk locally but Parry highlighted that both power interruptions and cyber incidents led to business interruption. “So it’s logical to conclude that business interruption as a result of one and two, will be top of mind for tourism and hospitality businesses.

“Analysing the survey results deeper, both one and two, have supply-chain consequences, which again has a knock-on effect on business interruption. For those reasons, insurers have revised their products to either exclude or restrict Contingent Business Interruption cover,” she said.

Parry highlighted that the risk management environment and the practice of risk mitigation was a complicated, even complex, matter for most business owners.

“Regardless of its size, revenue and market share, it takes great skill; a pragmatic and sensible ‘prepare for the worst-case scenario with a crystal ball’ approach of the business’s internal and external risks. Best place to start is to start with the basics. Identify your risks; analyse the risks; evaluate the risks.

“Treat the risks and finally, monitor and report on the risks. Consult with a knowledgeable risk manager, and then speak to your insurance adviser about transferring some of the identified risks, and you'll be off to a good start,” advises Parry.

Respondents to the Allianz survey said that cyber risks were not well understood, like traditional risks such as fire and natural catastrophes, therefore mitigating against them was still not well developed.

Cyber security solutions expert, Artic Wolf, notes that despite new tools emerging every year, cyber attacks are on the rise. Even with the best technology and processes in place, overwhelmed security teams still waste countless hours addressing dozens of false positive alerts.

The company suggests consulting professional cyber security experts, in addition to looking at insurance cover.