The year 2021 saw businesses slowly but surely make their way to recovery from the crippling effects of the pandemic. Just as businesses are starting to open their doors again, natural disasters like the one that hit NSW in early 2022 paralysed businesses that were already struggling to stay open to begin with. As a business owner, it is your job to keep tabs on the global business risks that could put your livelihood’s survival at risk. Identifying these risks are also critical so you can plan ahead the ways to mitigate their impact.
2022 Global Business Risks to Be Aware Of
So, what are the top business risks that you might be facing in 2022? We’ll examine them closely below in order to develop a plan of action to survive even when your business is affected by factors that are beyond your control.
The concern with climate change is not just a recent phenomenon. It has been the center of discussion on a global scale for decades now. Just as businesses are about to pick up from the economic crisis that followed the pandemic, heavy rainstorms and flooding hit several parts of NSW in early 2022.
Many businesses have almost reached their breaking point as the flooding destroyed businesses, homes, and infrastructure. Business owners who are already grappling with the financial loss resulting from pandemic-induced lockdowns stand to lose more due to the damage caused by the extreme weather conditions.
Indeed, climate change is felt right now and its risk is only going to be more pressing. Government regulators respond to the issue of climate change by updating regulatory standards for businesses to put climate change at the forefront of the issue. As a business owner, you need to take the initiative to manage your use of resources, decarbonise, and find ways to make your operation sustainable. Otherwise, the impact of climate change will continue to affect the business which could put you at risk of more financial losses.
If there is one thing that business owners have learned from the pandemic, it’s that you have to prepare for possible business interruptions so it does not cripple your main source of livelihood. Many businesses in Australia have scaled back on their operations after they were forced to shut down during the pandemic. There were plenty of businesses that were forced to shut down for good.
For those businesses that chose to stay open, they struggled due to the shortage in supply of critical components. They were incapable of meeting the demand of the customers that they had left. As a result, several businesses saw a dip in the quality of their products and services, which adds another layer of risk to the business survival.
Developing a business continuity plan in the event of unexpected interruptions should be made a priority. It also pays to keep your business insurance updated and your coverage to be reviewed constantly to ensure that you have the adequate level of protection you need based on your risks.
Due to the forced lockdowns and brick-and-mortar stores to stay open, many businesses have switched their operations online. However, these businesses were still not free from risks and threats. The number of cyber-attacks increased during the pandemic. This posed another problem as many businesses rely on an online presence to continue serving their customers, as well as many people working from home.
The use of technology to safeguard business owners from these attacks is a must. It is important for business owners to build an organisation-wide cyber resilience plan for 2022.
The business landscape is inherently volatile; however, the pandemic and the economic crisis that followed increased its volatility. Get more info here from insurance brokers who can assess your individual risks and help protect the business and directors as needed.
In a time of uncertainty, working with insurance brokers to get the right coverage that would hedge the risks known to your business is a smart investment.