Today, The Graham Company announced the results from its 2015 Business Risk Survey. With this survey we reached out to 300 senior business professionals across the country to learn what they view as the top business risks in 2015. The survey revealed that nearly three quarters of business leaders are most concerned about potential risks associated with healthcare costs and cyber security threats to their organizations. Our survey also found that even though business leaders perceive that they are taking the adequate measures to protect their organizations, in reality they’re falling short of doing what’s necessary to mitigate the risk associated with these potential threats.
Top Business Risks of 2015
Companies are worried about healthcare costs because these costs continue to increase at a double-digit pace and, as a result, administration becomes more complex. There are many variables at play that influence the costs associated with healthcare benefits. Employers are realizing that healthcare is no longer something to look at once a year, so they are implementing strategies that are sustainable for three to five years, similar to how employers manage other business risks. These strategies aren’t taken lightly because they not only impact the bottom line, they also impact employee recruiting and retention.
Like healthcare costs, cyber security risks are also rapidly changing. As the business world gets closer to being paperless, securing digital information becomes even more important. The key is being aware of potential risk factors and taking the necessary precautions. Companies also need to be educated on the latest changes in technology and how these changes can work for or against them. It’s not an easy job. It requires ongoing maintenance and optimization, which is why working closely with an insurance broker can help streamline the process.
Companies Aren’t Doing Enough
64% of survey respondents felt that their organization was either very well prepared or fairly well prepared to address the risks associated with healthcare costs, and 83% of respondents felt the same way about employee safety in the workplace. However, only slightly more than half of respondents regularly consulted with an insurance or risk management expert to review plans for mitigating risk.
This is a classic situation of perception versus reality. Companies think they’re doing enough, but if you peel back the layers they aren’t. At Graham we put companies through a risk management and safety assessment because, many times, the policies and procedures they have in place aren’t being carried out and followed by the people they were designed for. The reason for this is because there’s a disconnect somewhere along the lines of communication within the organization.
These are just a few of the findings from our 2015 Business Risk Survey. But they make one thing clear: a one-size-fits-all approach to insurance and risk management doesn’t cut it. In today’s business world, potential threats are constantly changing, making your company vulnerable in ways you may not be prepared for. To overcome this, always make sure your insurance broker has a seat at the table. He or she will help you create a more proactive and specialized insurance and risk management program.
An infographic representation of the survey data can be found here.
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