Business executives are still facing a generational challenge

"Business executives are still facing a generational challenge," says insurer CEO

Beazley says businesses are confronting a "perfect storm" of high-risk/low-resilience. Business leaders expect summer risk to peak. According to Beazley, businesses faced challenges before the Russian invasion.

Beazley conducted its annual risk and resilience assessment in January, before the Ukraine war. Only 25% of those polled felt they were working in a high-risk setting. However, when asked to forecast six months ahead, 43% of UK leaders and 38% of US leaders said they expected to be working in a high-risk scenario by mid-year.

Beazley reported that war danger was the top fear for 22% of UK and US business leaders by summer. Economic uncertainty, which was already a major issue before the Ukraine invasion, has risen six percentage points since January, from 27% to 28% of business leaders.

Globally, 55% of respondents were concerned about reducing inflation in 2022. The US had the greatest percentage at 65%, according to the poll.

Beazley noted that employment, intellectual property, and energy transaction risks all quadrupled in January from levels in 2021.

Problems with resiliency

Beazley says that while risk perceptions have risen, perceived resilience has declined. In January, only 27% of poll respondents felt highly resilient in managing risk, compared to 35% last year.

In 2017, US business leaders were more resilient than their UK counterparts.

Changes in customer behavior or market developments are contributing to the decline in perceived employer resilience, according to Beazley.

In the wake of the Russian invasion of Ukraine, business leaders are facing possibly the toughest test in a generation, according to Beazley CEO Adrian Cox. "Businesses must adapt to a new world order in which everything from trading connections to commodity prices to supply chains must be reevaluated. As insurers, we must help businesses navigate this high-risk, low-resilience world."

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