Business leaders have shown increased concern about the risks posed by economic uncertainty, inflation and geopolitical upheaval, according to a report on Monday from Beazley PLC.
From political tensions in Europe to mass shootings in the states of New York and Texas, business leaders are facing a host of potential unexpected events that pose risks to corporate resilience, according to Beazley.
Just over 21% of companies across the UK and US cited war and terrorism as their biggest concern, compared with almost 15% in 2021.
The number of UK and US companies citing economic uncertainty as their primary concern increased from 21% to over 27% from 2021 to 2022. At the same time, 27% of UK and US business leaders placed inflation at the top of the risk list.
About 55% of business leaders, rising to 65% in the United States, believe they lack the necessary resilience to deal with inflation, which Beazley called a “dominant threat.”;
“Even the territories that are far from the theater of war in Eastern Europe feel the effects of global sanctions and commodity shortages across the board – from the supply chain to the cyber threat, to political risk and trade credits,” the report said.
The report also noted how risk factors can affect each other, with civil unrest seen as a “real opportunity” due to factors including general inflation and rising food and fuel prices in particular.
For his risk and resilience research, in January 2022, Beazley commissioned the research company Opinion Matters to map the opinions of over 1,000 business leaders and insurance buyers of companies based in the UK and US with international operations.
The respondents represented companies active in health care and life sciences; financial institutions and professional services; manufacturing; energy and tools (including mining); retail, wholesale, food and beverage; and other sectors.