As a business owner, you should keep up with global risks so you can plan accordingly.
Here are some of the top global risks for 2020.
1. Cyber incidents
This would have to be number one right now due to a rapid rise in cybercrime activity during the pandemic.
To mitigate:
- Do a thorough risk assessment process of your cyber risk exposure.
- Develop strong cyber security policies and procedures and staff training programs.
- Check your cyber insurance is up-to-date and adequate for your risks.
2. Business interruption
This risk is ever-present, but with the pandemic it may have increased for many businesses.
To mitigate:
- Investigate the ways you could keep your business afloat at this time – such as continuing online services.
- Develop disaster action and recovery plans for catastrophes.
- Make sure you have adequate business interruption cover in your insurance policy. (Bear in mind this may not cover you for pandemics, although policy extensions may be available).
3. Climate change
According to the Insurance Business Magazine, climate change has made it to the top three business risks in Australia, due to rising temperatures, dry weather, and recent bushfires.
To mitigate:
- Take steps to improve your business’s disaster resilience. Check out the Disaster Resilience Knowledge Hub for assistance with this.
- Make sure you have adequate insurance cover for the climate risks your business faces.
4. Regulatory and policy shifts
Australian businesses need to ensure they are compliant with regulations, which means ever-changing ‘red tape’ is something they all have to face.
To mitigate:
- Keep up with regulation changes – e.g. through email alerts.
- Check to see if your business is eligible for the government’s statutory demand safety net.
- Speak to your broker about whether your insurance needs any tweaking for regulatory risks.
5. Global uncertainty
There is considerable geo-political uncertainty right now. Australia is still relatively stable, but Brexit, the US election and other events are taking their toll.
To mitigate:
- If you deal with overseas suppliers or customers, build your regional awareness and knowledge of the regulatory challenges and develop strategies accordingly.
- Consider political risk insurance to cover you financially.
If you need help insuring against business risks, talk to your local Reliance Partner.