Cyberattacks moved up in the ranks to become the sixth biggest risk to doing business in APAC, according to the APAC results of the World Economic Forum (WEF) Global Risks Report 2017, produced in partnership with Zurich Insurance.
In a complex environment – which cost the global economy an estimated US$315 billion through cybercrime in 2015, $81bn of which was lost in APAC – executives in Australia, Japan, Malaysia, New Zealand and Singapore single out cyberattacks as a top three risk of highest concern.
“Embracing new IT-driven technologies opens up wide-ranging opportunities for organisations of all sizes – but our increasing reliance on the internet introduces significant new risks too,” says Cecilia Reyes, Chief Risk Officer, Zurich Insurance Group. “In light of the increasing volume and sophistication of security breaches, it is no longer sufficient to consider cyber risk a concern for the IT department. Today, cyber risks require board-level attention and organisations must plan for a co-ordinated recovery in the event of an attack, so that when breaches happen, they can get the business back to full strength, at full speed, with their reputation intact.”
With the region presenting a volatile geopolitical landscape, the risk of terrorism, which has never previously featured in the top ten risks for doing business in APAC, also emerged as the ninth risk of greatest concern.
Pakistan, Singapore, Indonesia, Philippines and Thailand, among others, all highlighted the risk of terrorism. The UN recently warned of the threat of terrorism in Southeast Asia, which last year saw an increase in the number of cases of terrorist violence, and called for effective collaboration among ASEAN partners.
Four out of the top five risks for doing business in Asia Pacific (APAC) are economic risks, according to the report. Environmental risks fell in the rankings, while cyber and terrorism threats emerged as risks of increasing concern for companies doing business in APAC.