Page 58: of Maritime Reporter Magazine (February 2021)

The Final Word

ID, Mitigate Risk 2021

Meet the “COVID Trio”

In step with the recent release of the Allianz Risk Barometer for 2021, we visited last month with Captain Andrew Kinsey, Senior Marine Risk Consul- tant, Allianz Global Corporate & Specialty to discuss ? ndings from the recent report and what it means for the year ahead.

By Greg Trauthwein

Andrew, to start, can you summarize the top three risks to businesses in 2021, aka the COVID trio?

Sure thing. The top three global busi- ness risks are business interruption, a pandemic outbreak and cyber incidents.

And those are our top three global busi- ness risks, but then also the report, the barometer drills down into marine and shipping speci? c-related risks as well.

And not unsurprising given the global trade, the top three maritime and ship- ping risks are pandemic outbreak, busi- ness interruption, natural catastrophe and then followed by four, which is cy- © freshidea/AdobeStock ber. So they mirror each other.

those microchips have been in such high more warehousing. However, Toyota demand for gaming consoles and for has been able to continue production

What changes do you expect to see things that people are using while stuck without any slowdown, because (of les- to the global supply chain to help it at home: computers, laptops, tablets, sons learned in 2011).

be more resilient in the future?

Interesting question. It’s really the gaming consoles have created tremen-

How has COVID-19 speci? cally en- dous demand impact. So excess pro- downside of global production and sup- hanced cyber risk?

ply chains; it’s an interconnected world duction goes to the one that brings the where we’re working and living. Let’s greatest return (5G vs. automatic chips). Yes, it has and it’s actually a multifac-

What we’re seeing is that certain eted impact. One of the keys is we’re look at a speci? c segment, vehicle pro- duction, for example. Right now with builders have a more robust pro? le in working remotely. As a result, those global vehicle production, it’s not the their supply chain. Toyota, for example, platforms that we connect through have bulkers that we’re looking at that have is one, as following the 2011 it took to be secure. In many cases they were a shortage; it’s not the steel that’s the concrete steps to make its supply chain not, and in many cases they continue not issue; it’s actually the availability of more robust, and also to keep more in- to be. And it’s the challenge that you’re microchips that is impacting vehicle ventory on hand. That increased inven- in an interconnected world, but just by tory is money out of their pockets and the nature of that interconnectivity, we production globally. Due to the inter- connected nature of the supply chain, into inventory. It’s also more storage, are increasing our exposure to cyber 58 Maritime Reporter & Engineering News • February 2021

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