Note: The Risk Matrix is produced by the Risk and Insurance® editorial team. Liberty Mutual Insurance is the presenting sponsor and has no responsibility for the content.
frequency
impact
Inflation
Higher insurance premiums may be the
first sign of rising total cost of risk, but rising wages, materials, equipment and other business expenses also contribute to increased costs. As companies try to balance their budgets, they should also look closely at their insurance programs’ terms, conditions and limits to make sure they are not left with coverage gaps.
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impact
Workplace Injuries
Severe Weather
Legal System Abuse
Inflation
Cyber Events
frequency
Workplace injuries cost U.S. businesses more than $58 billion in medical costs and lost wages each year. In addition to these direct costs, businesses may encounter productivity challenges and added costs to pay overtime or temporary workers while an employee is out.
Workplace Injuries
Note: The Risk Matrix is produced by the Risk and Insurance® editorial team. Liberty Mutual Insurance is the presenting sponsor and has no responsibility for the content.
Workplace injuries cost U.S.
businesses more than $58 billion in
medical costs and lost wages each year. In addition to these direct costs, businesses may encounter productivity challenges and added costs to pay overtime or temporary workers while an employee is out.
Workplace
Injuries
An organization may boost its resilience
to climate-related events by making properties more weather-resistant, building out supply chains, upping property coverage and revisiting response plans to help mitigate the severity of losses. Businesses should also consider the potential environmental and health-related hazards that severe weather can create.
Severe Weather
Third-party litigation funding and attorney advertising are two key drivers of nuclear verdicts and rising claims costs. Businesses held liable may face higher insurance premiums, reputational damage and a lack of capital for future investments.
Legal System Abuse
As the war in Ukraine continues,
economic impacts for U.S. businesses include rising energy costs, a decrease in commodity imports, business interruption and supply chain challenges. These issues could also stunt business productivity, limit the ability to maintain insurance coverage in affected regions and negatively impact relationships if service agreements do not meet contractual expectations.
Political Unrest
The average cost of a data breach is
$4.45 million. Investing in insurance, employee training and stronger digital defenses to protect systems and data can help mitigate this risk. Businesses may also experience extended downtime or face legal costs and fines if they don’t comply with new SEC rules that require public companies to disclose data breaches within four days of discovery.
Cyber
Events
Deteriorating roads, bridges and power
grids can have far-reaching business effects. In addition to damaged vehicles and equipment, spoiled inventory and business interruption, outcomes such as employee injuries and lost contracts can also hit a business’s bottom line.
Aging Infrastructure
Many businesses are making significant investments to upgrade operations, equipment, facilities and fleets to help reduce greenhouse gas emissions. However, those that fall short may face D&O claims related to greenwashing, shareholder lawsuits and SEC investigations.
Energy Transition
Aging Infrastructure
Low impact
Low frequency
Higher insurance premiums may be the first sign of rising total cost of risk, but rising wages, materials, equipment and other business expenses also contribute to increased costs. As companies try to balance their budgets, they should also look closely at their insurance programs’ terms, conditions and limits to make sure they are not left with coverage gaps.
Inflation
High impact
High frequency
Third-party litigation funding and attorney advertising are two key drivers of nuclear verdicts and rising claims costs. Businesses held liable may face higher insurance premiums, reputational damage and a lack of capital for future investments.
Legal System Abuse
High impact
Low frequency
The average cost of a data breach is
$4.45 million. Investing in insurance, employee training and stronger digital defenses to protect systems and data can help mitigate this risk. Businesses may also experience extended downtime or face legal costs and fines if they don’t comply with new SEC rules that require public companies to disclose data breaches within four days of discovery.
Cyber Events
High impact
High frequency
As the war in Ukraine continues, economic impacts for U.S. businesses include rising energy costs, a decrease in commodity imports, business interruption and supply chain challenges. These issues could also stunt business productivity, limit the ability to maintain insurance coverage in affected regions and negatively impact relationships if service agreements do not meet contractual expectations.
Political Unrest
Low impact
Low frequency
Deteriorating roads, bridges and power grids can have far-reaching business effects. In addition to damaged vehicles and equipment, spoiled inventory and business interruption, outcomes such as employee injuries and lost contracts can also hit a business’s bottom line.
Aging Infrastructure
Low impact
High frequency
Many businesses are making significant investments to upgrade operations, equipment, facilities and fleets to help reduce greenhouse gas emissions. However, those that fall short may face D&O claims related to greenwashing, shareholder lawsuits and SEC investigations.
Energy Transition
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Political Unrest
Energy Transition
Low impact
High frequency
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An organization may boost its resilience to climate-related events by making properties more weather-resistant, building out supply chains, upping property coverage and revisiting response plans to help mitigate the severity of losses. Businesses should also consider the potential environmental and health-related hazards that severe weather can create.
Severe Weather
High impact
Low frequency
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