Fraud, cyber incidents and corruption are threats to businesses

Cyber incidents, theft, fraud, and corruption are risks facing businesses in Kenya this year.

This is according to a survey by Allianz Commercial called Allianz Risk Barometer Results Appendix 2024.

The survey was based on the insights of 3,069 risk management experts from 92 countries and territories.

Other risks include changes in legislation and regulation (e.g., tariffs, economic sanctions, protectionism, Euro-zone disintegration), macroeconomic developments (e.g., inflation, deflation, monetary policies, austerity programs), and business interruption (including supply chain disruption).

Additional risks are market developments (e.g., intensified competition or new entrants, mergers and acquisitions, market stagnation, market fluctuation), climate change (physical, operational, and financial risks due to global warming), energy crises (supply shortage or outage, price fluctuations), political risks and violence, and fire or explosion.

Globally, cyber incidents, business interruption, natural catastrophes, changes in legislation, and macroeconomic developments are the top five business risks.

Respondents were questioned during October and November 2023.

The survey focused on large, smaller, and mid-size companies.

Respondents were asked to select the industry about which they were particularly knowledgeable and to name up to three risks they believed to be most important.

Most answers were for large-size companies (with annual revenues above US$500 million (Sh64.5 billion)), representing 1,340 respondents or 44 percent.

Mid-size companies (over $100 million (Sh12.9 billion) to $500 million (Sh64.5 billion) revenue) contributed 792 respondents (26 percent), while smaller enterprises (less than $100 million (Sh13 billion) revenue) produced 937 respondents (30 percent).

Risk experts from 24 industry sectors were featured.

Kenya in Africa and the Middle East was surveyed together with Cameroon, Ghana, Ivory Coast, Mauritius, Morocco, Nigeria, Senegal, South Africa, and Uganda.

According to the survey, natural catastrophes are new risks and include storms, floods, earthquakes, wildfires, and extreme weather.