The comprehensive report delves into the intricate landscape of mid-sized enterprises, providing a detailed examination of 12 macro and 99 micro risks, alongside insights into the preparedness strategies adopted by companies with revenues ranging from $200 million to $3 billion.
Among the paramount concerns for mid-sized businesses are financial risks linked to fraud, operational performance, and liquidity. These encompass the ever-present threats of cyber attacks, extended system outages, and corporate espionage. QBE underscores that these focal points of apprehension align with the intricate and multifaceted landscape that mid-sized companies must navigate.
Interestingly, the report reveals that the percentage of companies equipped with risk mitigation plans for each macro risk has declined to 43%, marking a decrease from previous years (46% in 2022, 45% in 2021, and 2020). QBE highlights that both financial and digital risks have maintained their positions as the most pressing macro risks for four consecutive years.
Furthermore, the rankings indicate a noticeable ascent in both organizational and macroeconomic risks, while risks associated with pandemics and liability have seen significant declines. Cyberattacks have emerged as the most troubling micro risk, underscoring their prominent status within the realm of digital risk.
The report also spotlights other notable micro risks, including vulnerabilities in the supply chain, recession concerns, inflation, talent attraction and retention challenges, fraud, operational performance, and breaches of privacy. An interesting development revealed in the findings is the rise of organizational risk, surpassing business interruption as the third-most concerning area. This shift is likely driven by talent attraction and retention challenges and demographic shifts in the labor market.
Commenting on the report, Lucas Prahl, Head of Middle Market at QBE North America, said: “The report’s findings show a clear contrast, with some mid-sized companies making strides in addressing their highest concerns, while the broader preparedness landscape still offers substantial room for growth.
“This necessitates a call to action, urging the development of more comprehensive and tailored risk management strategies. These strategies should address most concerns, empowering mid‑sized businesses to navigate challenges with resilience and strategic foresight.”
Mike Foley, President, Commercial Insurance at QBE North America, commented: “This report is a testament to the intricate landscape within which mid-sized businesses operate, illustrating the challenges they face and the strategies they employ to navigate uncertainties. We recognize the significance of this report in guiding mid-sized companies towards more tailored risk management solutions.”
He added: “It underscores the need for dynamic strategies that address both macro and micro risks, enabling these companies to thrive in an evolving business environment.”
