Study Analyzes Retail Industry's Unique Risk Exposure
With retail sales in the United States projected to reach nearly $4 trillion in 2016, the cost of risk is estimated to be $23 billion, according to the Milliman Retail Cost of Risk Report.
According to the report, for 2016, the cost of risk for U.S. retailers is projected to average $5.93 per $1,000 of sales. The cost of risk is a means of measuring the liabilities retailers are exposed to in the course of doing business, and includes employee and customer injuries, lawsuits stemming from business operations such as employment practices, and property and inventory losses from weather events, thefts, and fires.