Risks facing the engineering sector
I&C July 2024
IT in Manufacturing
Geoff Tanton.
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. These are followed by business interruption (28%), macroeconomic developments (21%) and cyber incidents (19%). The report, based on insights from over 3000 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 prioritise 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 to be 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.”
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 prioritise risk management and adopt proactive measures to protect their assets, employees and reputation.
The Allianz Risk Barometer is an annual business risk ranking. It incorporates the views of 3069 risk management experts in 92 countries and territories including CEOs, risk managers, brokers and insurance experts, and is being published for the thirteenth time.
For more information contact Lesiba Sethoga, Allianz Commercial, +27 11 214 7948, [email protected], www.allianz.com
Further reading:
Five data centre trends to watch in 2025
IT in Manufacturing
Any innovation that comes out in 2025 – whether it’s flying cars, highly advanced AI or a breakthrough medical treatment – will be built on the back of an equally innovative IT foundation driven by data. Data that needs to be stored, managed and made accessible in the data centre, in the cloud or at the edge. Is it too much of a stretch to say the future of humankind is dependent on data storage? We don’t think so.
Read more...
Recovering from a cyberattack
IT in Manufacturing
While many organisations have invested heavily in frontline defence tools to try to keep out bad actors, they have spent far less time and money preparing for what happens when the criminals eventually get in. And they will get in.
Read more...
The value of proactive maintenance management
Schneider Electric South Africa
IT in Manufacturing
Maintenance has come a long way from the days when we waited for things to break, and thanks to the ever-increasing capabilities of technology, predictive maintenance has become a viable solution for keeping equipment running smoothly and efficiently around the world.
Read more...
Significant decarbonisation can be achieved in the mining industry
ABB South Africa
IT in Manufacturing
ABB has released a global report titled ‘Mining’s Moment’, which highlights the progress being made by the mining industry to make operations more sustainable.
Read more...
Pinpointing pipeline occurrences in seconds, not hours
Schneider Electric South Africa
IT in Manufacturing
At any given moment, thousands of kilometres of critical assets flow through pipelines that cross veld, mountainous areas, dense forests, and even busy streets. Surprisingly, many of these pipelines operate either unmonitored or with scant oversight, leading to missed opportunities for operational continuity and efficiency.
Read more...
Next-generation AI-enhanced electronic systems design software
Siemens South Africa
IT in Manufacturing
Siemens Digital Industries Software has launched the latest advancement in its electronic systems design portfolio. The next-generation release takes an integrated and multidisciplinary approach, bringing a unified user experience that delivers cloud connectivity and AI capabilities to push the boundaries of innovation in electronic systems design.
Read more...
Spatial computing and AI – where no man has sustainably gone before
Schneider Electric South Africa
IT in Manufacturing
Some will argue that we now live in a sci-fi world where we dream of electric sheep, and today’s technology – unlike HAL – can provide us with the answers we seek. To the realist it might seem a bit implausible, but when you start using terms like ‘spatial computing realises sustainable AI’ it doesn’t seem that far-fetched.
Read more...
Safeguarding DCS today and tomorrow
Schneider Electric South Africa
IT in Manufacturing
Today’s distributed control systems (DCS) are highly intelligent, converging OT and IT in a centralised manner that allows for simplified management and coordination of operations. It is technology evolution at its finest, but with a caveat, cybersecurity challenges.
Read more...
Quantum computing is not as futuristic as it sounds
IT in Manufacturing
The first quantum computer was created almost three decades ago. While its applications are still unknown to many, this advanced field combines computer science, physics and mathematics to deliver solutions the world has been trying to find for aeons – and those it doesn’t yet know it needs.
Read more...
Transform field data into actionable business data
IT in Manufacturing
As part of its ongoing commitment to enhancing industry connectivity, Teledyne Gas & Flame Detection is making its new and proprietary Teledyne GDCloud available with the company´s GS700, GS500 and Shipsurveyor portable gas leak detectors, and also its PS200 portable four-gas monitor for personal safety and confined-space applications.
Read more...
printer friendly version