Natural catastrophes, fire risks among top concerns for engineering, construction, and real estate sector in 2024 – Allianz Risk Barometer

The engineering, construction, and real estate sector is facing significant challenges in the year ahead, with natural catastrophes fire, and explosion risks emerging as the primary concerns, according to the Allianz Risk Barometer. It is followed by business interruption (28%), macroeconomic developments (21%), and cyber incidents (19%).

The report, based on insights from over 3,000 risk management professionals and business leaders, highlights the urgent need for proactive risk management and comprehensive disaster preparedness to ensure business continuity and safeguard against potential disruptions.

Natural catastrophes, including hurricanes, earthquakes, and floods, pose a major threat to the industry, causing damage to infrastructure, delaying construction projects, and disrupting real estate markets. With 38% of respondents identifying, it as the top risk, the sector must prioritize resilience by adhering to building codes, incorporating climate resilience considerations, and collaborating with stakeholders for effective disaster response planning.

Fire and explosion risks are another significant concern, particularly during the construction phase and in occupied buildings. The report reveals that 31% of respondents consider this risk a top priority. To mitigate these risks, the industry must focus on fire prevention measures, including adherence to standards, installation of detection systems, and collaboration with experts for emergency response planning.

Business interruption, resulting from project delays, supply chain disruptions, and regulatory challenges, is also a pressing issue for the sector, with 28% of respondents highlighting it as a major risk. To mitigate these risks, contingency planning and diversification of project portfolios are recommended, alongside leveraging technology for flexibility, and conducting thorough risk assessments.

Macroeconomic developments, such as economic downturns, inflation, and changes in interest rates, pose a threat to the industry, affecting project financing, demand for construction services, and property values. The report reveals that 21% of respondents consider this risk a top concern. To address these risks, the sector must stay vigilant and adapt to changing economic conditions, while also exploring opportunities for growth and diversification.

In an increasingly digital landscape, cyber incidents are becoming a growing concern for the engineering, construction, and real estate industry. With 19% of respondents identifying this risk as a top priority, robust cybersecurity measures, such as encryption and employee training, are essential to protect sensitive data and maintain operational continuity.

“Allianz Risk Barometer 2024 highlights the critical risks faced by the engineering, construction, and real estate sector,” said Geoff Tanton, head of property and MidCorp at Allianz Commercial South Africa. “By implementing effective risk management strategies and disaster preparedness measures, businesses can enhance their resilience and ensure continuity in the face of various challenges.”

Head of Property and MidCorp at Allianz Commercial South Africa, Geoff Tanton.

The engineering, construction, and real estate sector plays a vital role in driving economic growth and development. As the industry faces an array of risks, it is crucial for businesses to prioritize risk management and adopt proactive measures to protect their assets, employees, and reputation.

 

Hot this week

Say goodbye to Sunday night sickness – First Group Hotels

As people enter the final stretch of the year,...

South African businessman Frik van Heerden making waves in the modelling space

Frik van Heerden is a highly successful businessman, but...

#WeWatchKenyan lines up four psychological thrillers

It’s Halloween again, and MyMovies.Africa™ has curated a selection...

Maandamano Baby Stand-Up show: Dec 20, 2024 – Loresho, Nairobi

Top Kenyan stand-up comedian and one of Africa's leading...

Brahman Hills: Eco-friendly weddings – a trend or the new norm?

Eco-friendly weddings have been around since early 2000s, but...

Topics

South African businessman Frik van Heerden making waves in the modelling space

Frik van Heerden is a highly successful businessman, but...

#WeWatchKenyan lines up four psychological thrillers

It’s Halloween again, and MyMovies.Africa™ has curated a selection...

Maandamano Baby Stand-Up show: Dec 20, 2024 – Loresho, Nairobi

Top Kenyan stand-up comedian and one of Africa's leading...

Brahman Hills: Eco-friendly weddings – a trend or the new norm?

Eco-friendly weddings have been around since early 2000s, but...

Zanzibar to host Trace Awards & Summit in February 2025 

Trace, the leading Afro-Urban music and culture platform, has...

10 series to stream on Showmax this November

This November, Showmax has an exciting lineup of series...

Nine movies to stream on Showmax this November

This November, Showmax is set to deliver a diverse...
spot_imgspot_imgspot_img

Related Articles

Popular Categories

spot_imgspot_imgspot_imgspot_img