Top 3 pandemic-related risks for maritime in 2021
Allianz Risk survey lists 3 strongly interlinked threats related to look out for in the maritime sector
The world experienced countless impacts of the COVID-19 devastation and business catastrophes. A recent survey by Allianz Global Corporate & Specialty (AGCS) survey involving 2,769 experts including CEOs, risk managers, brokers and insurance experts revealed compelling findings. Business interruption, pandemic outbreak and cyber incidents topped the list of risks in the maritime sector this year.
The COVID-19 trio
According to the survey carried across 92 countries and territories, the top three risks to maritime this year are:
- Business interruption (BI) – 41 per cent
COVID-19 thoroughly exposed global businesses’ vulnerabilities and uncertainty despite our remarkably-connected economies. The implementing of various restrictions profusely affected global production and supply chains, leaving businesses compelled to reevaluate their practices to adapt to the evolving landscape. Effective business resilience is imperative, otherwise the odds of being weeded out are certain.
- Pandemic outbreak – 40 per cent
Philip Beblo, global practice group leader utilities & services at AGC felt business interruption is the result. He said, “Given the widespread disruption caused by COVID-19, it is no surprise that it is ranked as the highest peril, while cyber was already one of the most concerning potential causes of business interruption.” The outbreak’s damage of global magnitude is in relation to the sudden closure of UK ports and borders late December 2020 resulting from a new strain.
- Cyber incidents – 40 per cent
Georgi Pachov, head of portfolio steering and pricing at AGCS said, “Displaced workforces create new opportunities for increasingly well-organised and funded cyber criminals to exploit and gain access to networks and sensitive information. Simultaneously, potential impact from human errors and technical failures may be heightened.
The need for vigilance
These three risks represent immediate threats to both individual and business safety. Secondary elements such as political climates, violence and even changes in legislation heavily accessorise the worldwide calamity. Allianz notes the pandemic tops the list across 16 countries through all continents and in 35 out of 38 countries that qualify for a top 10 risks analysis.
Joachim Müller, CEO of AGCS notes: “The Allianz Risk Barometer 2021 is clearly dominated by the COVID-19 trio of risks. Business interruption, pandemic and cyber are strongly interlinked, demonstrating the growing vulnerabilities of our highly globalised and connected world.
“The coronavirus pandemic is a reminder that risk management and business continuity management need to further evolve in order to help businesses prepare for, and survive, extreme events. While the pandemic continues to have a firm grip on countries around the world, we also have to ready ourselves for more frequent extreme scenarios, such as a global-scale cloud outage or cyber-attack, natural disasters driven by climate change or even another disease outbreak.”
Small and medium- sized shipping companies need not be casualties of the COVID-19 trio. They can instead maneuver the challenges by joining Marine Online’s Global Shipowners Alliance (GSA) network. GSA is an initiative to help these groups remain sustainable through volume consolidation, powered by an App + Web integrated platform.