Businesses must prepare for an increase in social unrest as the cost of living continues to rise and discontent among the population in many countries rises. Insurer Allianz warns against this, which advises companies to review their emergency plans and adjust them if necessary.
Strikes, riots and violent protest movements pose a risk to companies, because not only buildings or infrastructure can be damaged, but also business operations can be seriously disrupted. Supply chains can also be disrupted. For example, previous protests in France, Chile, the United States and South Africa have cost companies billions.
“Social unrest is increasingly a more critical risk than terrorism for many companies,” said Srdjan Todorovic, head of crisis management at Allianz. He said social unrest is unlikely to abate any time soon given the aftershocks of the coronavirus pandemic and the cost of living crisis.
According to the insurer, the influence of social media is also playing an increasing role in mobilizing protesters and fueling social unrest. Like-minded people can exchange ideas more easily and mobilize in large numbers more quickly and effectively via social media platforms.
Government buildings, transportation infrastructure, supply chains, retail properties, foreign-owned businesses, gas stations, distribution centers and tourism or hospitality businesses could be targets of civil unrest, Allianz said.
According to research firm Verisk Maplecroft, 75 countries are likely to see an increase in protests by the end of 2022. The outlook is darkest for 34 countries where the situation is already expected to deteriorate significantly by August. More than a third of these countries are in Europe and Central Europe, followed by the Americas, Africa, the Middle East and North Africa, and Asia.
Allianz warns companies about increasing social unrest
Source link Allianz warns companies about increasing social unrest