Businesses in Asia-Pacific face challenging regulatory shifts in 2014 and a fierce fight for talent, according to Allianz’s Risk Barometer 2014

Industrialisation in Asia’s major cities has led to an oversight of regulations and threatens to challenge businesses amid talent shortages, according to Allianz’s Risk Barometer 2014.

More than 400 corporate insurance experts responded from 33 different countries for Allianz’s third annual risk barometer which saw 46% of Asian respondents identify business interruption and supply chain risks as the top risk facing businesses in Asia-Pacific, up from second last year.

More than 22% participants believe regulation constitutes a major concern for businesses in APAC as legislation and regulation changes became a new entry into the top 10 and was the fourth biggest concern for respondents.

Allianz Global Corporate Specialty head of research and development Michael Bruch said: “What we are seeing – and China is one of the best examples of this – is that Asia is experiencing what industrialised countries have gone through recently in terms of regulatory development but over a much shorter time period.

“For example, the rise of environmental pollution and then the introduction of more strict legislation around it are happening within 10 years.”

Against the backdrop of regulatory challenges, firms face tough competition to recruit the best talent as the ageing workforce continues to test businesses.

Talent shortage and ageing workforce remained inside the top 10 risks facing businesses in APAC, with 9% of respondents believing they present a major concern for business.