Business owners fear natural disasters

Natural disasters, failure to meet demand and pollution will be the top risks for Canadian companies in 2014, says the Allianz Risk Barometer.

Further, new technological and regulatory demands are putting pressure on businesses, adds the barometer. As such, companies need stronger internal controls and risk management practices.

Kevin Leong, CEO of AGCS Canada, adds, “Continuity plans will [help leaders] prepare for different risk scenarios.”

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Top two risks

Half of executives are most worried about natural disasters. Not only are these occurrences unexpected, but also Swiss Re found insured losses from catastrophes totaled more than CDN$40 billion in 2013 across the globe.

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Almost as many companies (42%) cite business interruptions and supply chain losses—which account for around 50% to 70% of all insured property losses—as a main concern.

“Businesses in the Canada are discovering that supply chains are becoming increasingly complex in a globalized world,” says Tom Varney, regional manager for Allianz Risk Consulting in the Americas.

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That’s why “business continuity planning is critical and should be part of any risk manager’s supplier selection process,” he explains.

Reputation loss and disintegration of brand value tied for third place at 25%, along with regulatory and environmental risks.

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