44% of Companies Report Risks of Doing Business Are Increasing
Cybersecurity continues to climb the list of concerns for business leaders, along with executives’ concerns over medical cost inflation, legal liability, attracting and retaining talent, compliance and apprehension over economic uncertainty. According to the 2015 Travelers Business Risk Index , 44 percent of executives surveyed indicated that the business environment is becoming riskier, but businesses are often least prepared for their most worrisome concerns.
Businesses list rising medical costs
(33 percent) and cybersecurity problems (29 percent) as the risks they are least prepared to handle.
Sixty percent of all companies surveyed cited medical cost inflation as the highest concern, followed closely by concerns about rising employee benefit costs (56 percent). Cyber risks were the second concern for all businesses (58 percent), compared to 2014, when it was ranked fifth. Seventy percent of large enterprises now see cybersecurity as a major concern, compared with 60 percent of mid-sized businesses and 45 percent of small businesses. One in 10 businesses believes it has been the victim of a cyberattack, including one in five large businesses, the report states.
There are also rising concerns about global conflict and political instability (32 percent cite it as a concern, eight percentage points higher than in 2014), as well as continued concerns about the effect of extreme weather on company property and equipment. More than half of businesses claimed that extreme weather events are becoming more commonplace, and the most pronounced view of extreme weather came from Northeast-based businesses. According to the report, nearly one in three businesses see an increasing likelihood of damage to property or equipment as a result of extreme weather.
However, even with rising concerns about business disruptions, only 50 percent of the companies surveyed have a written business continuity plan, and only 41 percent have a recovery plan to help their business get back on track after a disaster.