Insurance company Travelers has figured out what keeps companies up at night. More specifically, it’s updated its business risk index, polling 1,200 decision-makers across the country to compile a list of what is perceived as the biggest threats to companies. “When it comes to managing risk, businesses are often least prepared for their most worrisome concerns,” says Michael Klein, executive vice president and co-president of business insurance at Travelers.
Among the many nightmare-inducing scenarios that cropped up in Travelers’ survey, three topped the list of worries:
1. Medical Cost Inflation: This was rated as the biggest concern in 2015, with 60 percent saying they’re worried about it, and 33 percent noting it’s among the risks they’re the least prepared to manage. But that’s actually an overall improvement compared with last year, when 67 percent said it was a top issue.
2. Cybersecurity Risks: Rising in the ranks from fifth last year to second this year, fear of cyberproblems haunt executives. Malicious and criminal attacks are the most concerning at 55 percent, followed by human error at 24 percent and system glitches at 21 percent.
3. Legal Liability: Some 56 percent said they worry about corporate legal liability. In particular, professional mistakes, employee lawsuits for discrimination and harassment, and customer slip and falls top the list of liability concerns.
