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Stay Ahead of the Game: Top 3 Risks to Small Businesses in 2023

  • Adroit Insurance and Risk
  • August 15, 2023

Business Owners need to continue to remain resilient in the face of future risks

The recent global events have underscored the need for small businesses to be adaptable and ready for any challenges that may arise. Industry experts and early research have identified three significant risks for SMEs: extreme weather conditions, rising expenses, and cyber threats. To ensure the ongoing success and stability of your business, it is crucial to evaluate and update your risk management plans now.

MAJOR THREAT 1: Extreme weather events

Australians are familiar with the continual floods, storms, and bushfires we have experienced over the past few years. However, the Bureau of Meteorology has indicated that unpredictable and severe weather events are likely to continue in 2023 and beyond. So, it’s essential that business owners should review their risks and management by reviewing insurance policies to ensure they have the protection their business needs.

Understanding the major risks in your area, your business and industry and ensuring that any insurance policies are updated and reflect your requirements for the coming year, such as having the correct storm and flood cover.

MAJOR THREAT 2: Cost of living pressures

The cost of living is a significant concern for Australians, with 59% reporting it as a source of worry. To prepare for the future, small and medium-sized businesses can focus on understanding their cash flow, preparing for further increases in interest rates, and potentially refinancing. Additionally, it is important to review supply chains and consider Business Interruption Insurance in case of disruptions. As inflation and interest rates continue to rise and extreme weather events cause shortages, higher rents, and fuel costs, it is crucial for business owners to plan ahead to remain resilient in 2023.

MAJOR THREAT 3: Cybercrime

The Insurance Council of Australia has stated that Cyberattacks have been increasing in both frequency and severity (cost). Both cybercrime and lack of appropriate cybersecurity are considered significant risks for the coming year. As society becomes more reliant on technology, attacks on infrastructure and identity theft will continue to grow. To ensure cyber resilience in 2023, business owners should focus on cybersecurity awareness and best practices, like staff training to prevent and minimise attacks. To mitigate the potential damage caused by a data breach or ransomware attack, business owners are advised to invest in Cyber Insurance to protect their business operations and reputation.

Does your business have the protection it needs?

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