Santam Insurance has identified the following as some of the most common business risks an organization will face across a variety of industries:
• Fires: are considered the number one risk to businesses. In the current climate, one large fire could be the catalyst that closes a struggling business permanently. All it takes is a simple lapse in fire safety procedure. For example, if a generator is not maintained, its failure could cause the automatic sprinkler system to fail, which in turn might result in problems containing the fire.
• Cybercrime: costs South Africa R2,2 billion per year. It can cost small businesses anywhere between R50 000 and R250 000, if not more, to recover from cyber-attacks. Any business that uses some type of digital technology is vulnerable to such attacks. This is why it is important to implement good cyber risk management practices and appropriate cyber insurance cover, often available as a package in the market. This will help protect your business against losses such as business interruption, ransomware, and forensic costs, caused by a cyber malware attack.
• The accelerating rate of change: refers to how quickly things can change. Business owners need to evaluate the impact of new and emerging risks and how their own business’s risk profile has changed. For example, with more employees working from home (with company assets being transported and no longer only kept securely on site) there is an increased risk of cybercrime, loss of and damage to company equipment. Then there is also the change in occupancy experienced at your premises now that fewer employees are on the premises less often.
• Business processes and reliance on business partners: Any risk management strategy needs to consider how your business relies on business partners and supply chains. If their risk environment is changing, are they adequately protected, and risk managed? Business owners should have contingency plans in place that they can discuss with their intermediaries (Brokers) and should purchase insurance where necessary.
Thank you to Santam for the information.
