By Karla Sullivan
What does businesses feel a true risk to their survival? Travelers Insurance surveyed over 1,000 business man and many and found the following concerns threaten the key to success today.
Medical cost inflation
The cost of insurance premiums and employee medical claims is at an all time high. According to the CDC, many businesses are turning to workplace health programs to help employees build a better lifestyle. Since, 2000, health insurance premiums for a typical family of four have increased by over 100%. Increasing employee benefit costs is related to the medical cost inflation factor.
Legal liability
Costly lawsuits can shut businesses down in one fell swoop. Risk management is a concern for businesses to protect their organization since professional errors, driving accidents and slips/falls can be the difference between success and failure. Liability insurance is an alternative to help during challenging situations.
Economic uncertainty
The bottom fell out in June 2009 and though there has been some change, though it is still sluggish. Households and businesses are just not spending as they once did. In the recent past, government shut downs and battles of the Affordable Care Act are winding down. Though global uncertainty is still an issue such as the slower growth in Thailand and the future direction of China.
Cyber risk
As more and more business relies on technology online service, business loses as a result of IT failures can be estimated at over $200,000 an hour. Hacking attacks can cause loss of revenue as well as business reputation and ultimately, customers. Cyber insurance is a good idea that is encompassing more risks and services as it evolves.
Regulatory compliance
No matter what industry you are in, every industry is surrounded by rules and regulations. Sometimes, local, state, regional and national. Regulations are mandatory and licenses are lost, fines pending if the rules are broken. Again, following compliance defines a strong risk management program that defines efficiency.
Attracting and retaining talent
If organizations don’t have a strong future direction to develop leaders, it is difficult to get and keep the right people in place. In the next decade, over 75 million will retire and studies suggest that 50% are CEO’s
