A new survey highlights the largest sources of financial losses among business owners: risks of business interruption, property damage and general liability.
In the face of these risks, one in three businesses indicate they may delay global expansion. This is up from one in four from the winter 2015 / spring 2016 edition of the Clements Worldwide Risk Index.
According to Chris Beck, president of Clements Worldwide, businesses are coming to terms with the fact that man-made risks like political violence and cyber-attacks are as important as environmental risks like weather and natural disasters when it comes to global operations. “No single organisation can stop the increased threats to global operations,” he said.
“The Clements Worldwide Risk Index does make clear that organisations can do more to reduce the risks posed by particular threats like political violence, kidnap and ransom, and cyber threats. Creative and proactive risk management, including the right insurance, is a critical factor in the continued growth of multinational organisations and the entire global economy.”
Increased risks of political violence are also a major cause for concern for business, with 25 per cent of respondents citing terrorism as their top concern in this edition of the Index. The top concern among all respondents was fears related to lack of protection against cyber-attacks and subsequent cyber liability, which topped the list of concerns at 26 per cent.