For many years, we’ve advised our clients to perform an annual risk review. The good news is, it isn’t too late to do it for last year — to help you start off the year on the right foot for your business.
A risk management assessment allows companies to make any necessary adjustments to your policy portfolios so you can put adequate protections in place against existing and emerging risks. At this particular moment in time, the risk assessment process is more critical than ever.
The COVID-19 pandemic changed the risk landscape like nothing we ever could have imagined. Fortunately, there are lines of insurance to help mitigate these risks, and now is the time to make sure you have that coverage. Let’s take a look at some of the new (or newly exacerbated) risks in our ongoing-pandemic world and what you can do to protect your business.
The Biggest Threats to Businesses Today
Any adequate risk management assessment must start with the same question: what are the biggest threats to my business today? Well, according to industry experts, these are the greatest risks right now:
- Business interruption. Traditionally, business interruption insurance covered things like disruptions caused by natural disasters, fires, or shutdowns caused by governmental actions. Of course, the pandemic caused (and continues to cause) unprecedented business interruptions. Chief among these is supply chain disruptions. Almost from the inception of the pandemic, 94% of Fortune 1000 businesses were reporting supply chain problems. If you’ve visited almost any retailer in recent months, you’re well aware that this problem rages on.
- Further pandemic outbreak. We all saw how devastating the initial wave of COVID-19 was to businesses and families. With Omicron raging, we know that variants of the virus are a constantly evolving risk. With that risk comes uncertainty about things like worker health and safety, the ability to keep factories and offices open, and consumer confidence/purchasing trends.
- Cybersecurity. The cybersecurity threats stemming from the changed business landscape must be a part of any risk management assessment. Phishing scams, data breaches, ransomware, and other malicious cyber activities have only increased since the dawn of the pandemic.
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Why a Business Risk Assessment Helps Mitigate Risks
Like many businesses, until now, your company may have only performed a thorough business risk assessment every two to five years. That model has worked for a long time. But today’s erratic business climate dictates performing a risk assessment process every year. While business interruptions and cybersecurity attacks are not new (and you may actually already have those coverages), the pandemic’s influence on this type of insurance coverage dictates that you and your broker perform a deep-dive into your policy language to make sure your coverage meets the unique challenges of the day.
At present, there’s no blueprint on what “business as usual” looks like. That’s why it’s more important than ever to protect your business against the myriad of contingent business interruptions that are plaguing industries around the world.
IOAUSA offers business interruption insurance, supply chain disruption insurance, cyber liability insurance, and comprehensive risk management services, among other solutions to help you manage risk for your business. If you have questions about conducting a risk management assessment to meet the current business climate, we’re happy to help. Contact Roger for more information on a broker risk management review, or any other issues you may have surrounding your insurance needs.
Conclusion
Conducting an annual risk management assessment is essential for businesses to adjust policies and protect against current and emerging risks, especially in the context of the ongoing pandemic. Major threats include business interruptions, further pandemic outbreaks, and cybersecurity issues. Regular evaluations ensure comprehensive coverage and preparedness for unexpected disruptions, helping businesses navigate today’s unpredictable environment effectively. Readers are invited to connect with Roger J. Stewart for their annual risk management assessment by filling out the provided form.
