Second Annual Travelers Business Risk Index Reveals Increased Worries About Cyber Threats
May 20 2015 - 6:30AM
Business Wire
Medical cost inflation and legal liability
risks remain among top concerns
Cyber risks, medical cost inflation, and legal liability are
among the top concerns for American businesses of all sizes,
according to results from the second annual Travelers Business Risk
Index. The survey polled more than 1,200 business decision makers
across the country to better understand what they believe poses the
biggest threat to their businesses.
“The top three concerns are indicative of the ever-evolving
risks that pose threats to American businesses,” said Michael
Klein, Executive Vice President and Co-President of Business
Insurance at Travelers. “Yet, when it comes to managing risk,
businesses are often least prepared for their most worrisome
concerns. Fortunately, many of these risks can be mitigated and
resources are available to help businesses of any size stay
protected.”
Overall, the survey did suggest more optimism among business
leaders than last year, as fewer respondents reported worrying
about the economy and fewer believe the world is becoming riskier.
The following summarizes the results of the 2015 Travelers Business
Risk Index.
Cyber RisksCyber risks ranked as the second biggest
concern for all businesses, up from fifth last year. Businesses are
most concerned about malicious and criminal attacks (55 percent),
followed by human error (24 percent), and system glitches (21
percent).
Among the types of malicious attacks most worrisome to
businesses:
- 57 percent of respondents worry most
about having their computers or data systems infected with a
virus;
- 51 percent worry someone could gain
access to their banking accounts or financial control systems;
and
- 50 percent worry about a security
breach or someone hacking into their computer systems.
Medical Cost InflationMore respondents (60 percent) are
worried about medical cost inflation than any of the other risks in
the 2015 Travelers Business Risk Index. While many business
decision makers are concerned with this issue, it was less of a
concern compared with last year (60 percent in 2015 versus 67
percent in 2014). Additionally, 33 percent of respondents said that
medical cost inflation is among the risks they are least prepared
to manage.
Legal LiabilityLegal liability-related risks continue to
be another significant source of concern for business decision
makers, with 56 percent of respondents reporting that they worry
about it.
- Professional mistakes, errors, and
omissions are among the biggest concerns, worrying 42 percent of
respondents.
- Employee lawsuits for discrimination,
harassment, and wrongful termination concern 34 percent of
respondents.
- 33 percent of respondents worry about
both customer slips and falls and driving accidents caused by
employees.
Global/Political ConflictOne of the most significant
increases in concerns among business leaders relates to
global/political conflict. About one-third of those surveyed (32
percent) worry about global/political conflict, which is eight
percentage points higher than in 2014. One-quarter of decision
makers surveyed said political unrest is a larger concern today
than it was five to 10 years ago, up four percentage points from
2014.
WeatherMore than half (52 percent) of the respondents
believe severe weather has become more frequent, but only 38
percent believe that is the case for their area, and even fewer (32
percent) believe it has increased the likelihood of damage to their
business. The Northeast is the only exception, with 51 percent
believing severe weather is more frequent in their area. Only 41
percent of respondents have a business disaster recovery plan in
place to help rebound after a disaster.
Risk ManagementFew respondents consider risk management a
strategic priority. Decision makers at small businesses (11
percent) were least likely to name risk management as a strategic
priority or an important management activity, compared with
medium-sized (20 percent) and large (36 percent) companies.
For full results, including industry-specific information,
please visit www.travelers.com/businessriskindex.
About the SurveyHart Research conducted a national online
survey of 1,210 business decision makers from February 18, 2015 to
March 4, 2015. Small businesses are defined as those having 2-49
employees, mid-sized businesses as having 50-999 employees and
large businesses as having 1,000+ employees. The survey was
commissioned by Travelers and has a statistical margin of error of
+/- 3.0 percentage points.
About TravelersThe Travelers Companies, Inc. (NYSE: TRV)
is a leading provider of property casualty insurance for auto,
home, and business. A component of the Dow Jones Industrial
Average, Travelers has approximately 30,000 employees and generated
revenues of approximately $27 billion in 2014. For more
information, visit www.travelers.com.
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version on businesswire.com: http://www.businesswire.com/news/home/20150520005312/en/
Media:The Travelers Companies, Inc.Matt Bordonaro,
860-277-7014mbordona@travelers.comorGail Van Cleaf,
651-310-6902gvanclea@travelers.com
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