Top 6 Risks for Insurers in 2013

While business interruptions typically conjure up the image of major disasters that create havoc and impact whole communities, such as hurricanes, earthquakes or terrorist attacks, one cannot ignore those occurring on a smaller scale that might not make headlines—a power outage or water main break in the immediate area, fire in a room of a building, a bomb threat, or a workplace violence incident. Organizations must effectively address this risk by identifying all potential threats to their business and evaluating their mitigation options for each threat.

Oftentimes, companies equate innovation with technological upgrades or massive (and often costly) research and development projects, but experts say innovation is more about engaging employees at every level to think creatively about the design of powerful futures. To promote innovation, companies should foster an innovation culture from the CEO down.

The unpredictable nature of reputational and brand-related events continues to elude companies, which see damage to reputation/brand as a top risk concern. For many organizations, a comprehensive reputation risk control strategy can prevent a critical event from turning into an uncontrollable crisis and help maximize the probability of recovery. Those that have a firm grip on their brand and are better prepared can weather a crisis with minimum damage.