It comes to no surprise that the world is rich with exposure. Every day companies are getting hacked or someone is trying to sue them. Bigger companies face bigger risks that could cost them a lot. But what exactly are the main concerns for companies to worry? We’ve got the top ten risks CEOs and risk managers worry most about.
- Damage to reputation/brand
- Economic slowdown/slow recovery
- Regulatory/legislative changes
- Increasing competition
- Failure to attract or retain top talent
- Failure to innovate/meet customer needs
- Business interruption
- Third-party liability
- Cyber risk
- Property damage
Companies worry about many things that can go wrong and cause them to shut down. Many CEOs and risk managers believe the number one risk all companies face is brand reputation. Damage to a company’s brand and image will lead to other issues and risks. For example, if a company holds a bad reputation, finding smart and talented people to work for them will be difficult. There are also other risks to be aware of that will affect the company’s reputation and brand. Target and Sony are great examples of companies who encountered a cyberattack and therefore their reputations were tarnished.
Understanding risk management and all it encompasses is a hard topic to master. Research and learn from other company’s mistakes. Don’t overlook risks that could potentially shut down your business and cost millions.