Business interruption (BI) ranks second in the Allianz Risk Barometer 2024, an annual survey which asks more than 3,000 risk management experts around the world to identify their top business challenges for the year ahead, behind the closely linked peril of cyber. With almost all companies reliant on supply chains for critical products and services, it is little surprise that business interruption and supply chain disruption remain at the forefront of risk. It is the extent of the disruption that becomes the focus point. Some sectors of industry operate with supply chains that have extensive geographic footprints.
The prominence of BI also reflects the volatile environment in which companies currently operate. Despite efforts to improve resilience, the need for efficiency means many companies still run with low levels of stock and just-in-time manufacturing, which results in little margin for errors or disruption.
More Resilient Supply Chains?
COVID-19, and the resulting disruption to supply chains, has been a wake-up call for companies. Compared with pre-pandemic times, many companies are now much better prepared for business interruption or supply chain events.
Before COVID-19,…
