Emerging Business Risks in 2022

Managing business risks in the COVID-19 era

As vaccination rates around Australia continue to rise, restrictions are gradually being lifted.. Yet while we embrace our former freedoms, we cannot casually return to our old lifestyles and obliterate the nightmares of 2020 and 2021 from our memory banks.

While we all learn to co-exist with this still looming threat and the additional risks that we now face in our everyday lives, risk management has become even more important to business operations.

In addition to exposing the areas where countless organisations have long been vulnerable, the pandemic has given them fresh new challenges to contemplate, including disruptions to their business activities.

Possibly the most important lesson that business owners can take from the COVID-19 pandemic is the necessity of promptly dealing with all types of business risks.

Prominent business risks and ways they can be reduced

Supply chain disruptions

Putting businesses worldwide under strain during the pandemic, other leading causes of this type of business threat include natural disasters and industrial action. Whenever critical supply or delivery channels are impeded due to border closures, strikes or adverse environmental conditions, this can cause significant delays in receiving goods from suppliers or making timely deliveries to customers.

Stock Levels – Consider whether you should purchase surplus stock when ordering from suppliers. Additional stock on hand may help mitigate the risk of supply chain disruptions that would otherwise result in customer orders having to be placed on backorder until new stock arrives. Engage backup suppliers in different regions –Have emergency suppliers who are in different states to your main supplier. This gives you other options should the chain to your main supplier’s region ever be subject to disruption.

Schedule regular audits – Engage the services of an Audit Specialist to review all your supply chains and identify any potential risks.

Regulation changes

In these unpredictable times, businesses need to constantly keep up to date with changing public health information in order to remain compliant with regulations and laws.

Companies found to be in breach of any health regulations that have been put in place to slow the spread of COVID-19 and keep people safe can face severe penalties.

Hire an in-house legal expert – While not every company has the luxury of being able to afford their own in-house lawyer, it’s still a prudent idea to hire a legal consultant at regular intervals to review your firm’s compliance with all the relevant laws and regulations.

Train your staff – Make sure that your staff are informed about changing regulations by holding training seminars and sending company-wide emails whenever regulations are changed.

Invest in special software – Purchase any one of the great software programs on the market that have been specially formulated to help businesses stay compliant with relevant regulations pertaining to their industries.

These compliance management software systems monitor the introduction of new and amended legislation, regulatory guidance, standards, directives and orders, and will alert you when there are changes that you as a business owner need to know about.

Mental health

The impact of lockdowns on the mental health of employees all around the world has been a widely discussed topic during the pandemic. Keeping staff members engaged has proven to be especially difficult for business owners during times of social isolation.

Hold regular video catchups with staff members – Having daily meetings with your team, both as a group and with individual members, is essential to making sure that everybody feels they still belong in a team.

Introduce fun, team-building activities – To counteract the boredom and loneliness experienced by employees who work from home all day long, start some online team competitions and other social activities to keep staff members connected. Of course, fun prizes for the winners are a plus.

Cybersecurity

The pandemic has provided a plethora of opportunities for hackers to attack organisations by targeting their home-based employees.

Lacking the same high-level, internet security measures that exist in the workplace, isolated employees working from home on their personal laptops have often fallen prey to the dishonest tactics employed by cybercriminals. These online thieves can obtain access to sensitive company records by sending sophisticated phishing emails to employees who believe they are responding to legitimate business inquiries.

Install anti-virus software across all your business platforms – Protect your vital company information and online systems by implementing the best anti-virus software available. Run regular updates to ensure that any identified threats are acted upon before they escalate and run training sessions to assist employees in identifying the common indicators of a phishing email.

Premium business protection with Berkley Insurance Australia

COVID-19 has highlighted the need for businesses the world over to have comprehensive insurance coverage in place.

Berkley Insurance Australia offers a range of insurance solutions such as Management Liability, Statutory Liability, and Product Liability Insurance designed to protect businesses in the face of emerging risks.

Presenting a Risk to an Underwriter

Are Businesses Ready for Arising Supply Chain Risks

Important Notice

Information provided is general only and has been prepared without taking into account any person’s particular objectives, financial situation or needs. Insurance cover is subject to terms, conditions, limits, and exclusions. When making a decision to buy or continue to hold a financial product, you should review the relevant Policy Wording available at https://berkleyinaus.com.au/resources/