Modupe Gbadeyanka
By Modupe Gbadeyanka
A new report has revealed that businesses in Nigeria are mainly concerned about regulatory, cyber, and economic risks.
In the latest Allianz Risk Barometer, which was made available to Business Post on Tuesday, business owners do not sleep with their two eyes closed because of fears of changes in legislation and regulation.
“The changing regulatory environment poses significant challenges for businesses in Nigeria. Companies must stay updated and ensure compliance to mitigate potential risks,” the chief executive of Allianz Nigeria, Yomi Onifade, was quoted as saying in the report.
Macroeconomic developments have maintained their position as a top risk, indicating the ongoing challenges faced by businesses in navigating economic uncertainties and volatility.
“The Nigerian business landscape is constantly evolving, and companies must be prepared to adapt to changing economic conditions. A robust risk management strategy is essential to mitigate the impact of macroeconomic challenges,” Onifade added.
Apart from this, cyber incidents have also risen in prominence, with businesses recognising the urgent need to enhance their cybersecurity measures to protect sensitive data and maintain operational continuity.
“With the increasing reliance on digital platforms, businesses must prioritize cybersecurity to safeguard their operations and customer information. Failure to do so can have severe consequences,” Onifade emphasised.
On the global scene, cyber incidents such as ransomware attacks, data breaches, and IT disruptions are the biggest worry for companies in 2024.
“Cyber criminals are exploring ways to use new technologies such as generative artificial intelligence (AI) to automate and accelerate attacks, creating more effective malware and phishing.
“The growing number of incidents caused by poor cyber security, in mobile devices in particular, a shortage of millions of cyber security professionals, and the threat facing smaller companies because they rely on IT outsourcing are also expected to drive cyber activity in 2024,” the Global Head of Cyber at Allianz Commercial, Scott Sayce, noted.
“The top risks and major risers in this year’s Allianz Risk Barometer reflect the big issues facing companies around the world right now – digitalization, climate change and an uncertain geopolitical environment.
“Many of these risks are already hitting home, with extreme weather, ransomware attacks and regional conflicts expected to test the resilience of supply chains and business models further in 2024.
“Brokers and customers of insurance companies should be aware and adjust their insurance covers accordingly,” the chief executive of Allianz Commercial, Petros Papanikolaou, stated.
