New Risk Index Identifies Top Industry Concerns
Computer, technology and data-related risks, particularly computer viruses and hacking, are of major concern to business decision-makers. In fact, 59% of respondents worry about their systems being infected with a virus and being susceptible to a security breach. Additionally, 44% worry about losing control of customer records and 50% are worried about the company computers becoming damaged or going down.
Legal Liability
Legal liability-related risks are another significant source of anxiety for business decision-makers. These risks include professional mistakes, which worry 44% of respondents; driving accidents, which are a concern for 33% of those surveyed; and lawsuits brought on by employees, which concern 35% of business decision makers.
Small Businesses at Risk
Small business decision-makers do not appear as worried as their counterparts from mid- to large-sized companies about the issues identified as the top risks in the Travelers Business Risk Index. While they have indicated less concern, a damaging event could have an even greater long-term impact on a small business, which generally has less access to capital. The Business Risk Index identifies that only about half (55%) rely on risk management guidance from their insurance carrier.
Additional Concerns
American business executives worry about numerous other risks. Sixty percent of respondents believe that extreme weather events are happening more frequently, and 37% believe the increase in severe weather frequency and severity poses an increased risk of damage to their business (e.g., damage to property, equipment, facilities or vehicles).
About half (55%) of those surveyed have a business continuity plan in place, and only 30% of small business decision-makers reported having a business continuity plan. Access to capital and financial issues worry 47%, and for 42%, risk to corporate reputation is also a mid-level concern. Concerns about employee safety and global economic risk were cited by 39% and 40% of American business executives, respectively.
