Going Global, Growing Risk
More than half of the businesses recently surveyed by Chubb expect to increase overseas activity in 2014. Yet the insurer found that many are unprepared for the additional risks of operating on a global scale. According to the “2014 Chubb Multinational Risk Survey,” executives listed failures along the supply chain, data breaches and political stability as their three biggest overseas threats. Of those polled, 45% consider overseas risks a greater threat than their domestic equivalents, and 48% of companies experienced at least one loss over the past three years related to overseas business activities.
However, while they are aware of the dangers, many are not doing everything they can to minimize the risks. Chubb found that 56% of respondents have a business continuity plan that addresses overseas risks, but only 38% test it regularly, and 40% do not require their overseas suppliers and vendors to have similar continuity plans.
Businesses are also underprepared for potential complications with employees. As more employees travel, companies must refine travel policies, increase assistance services, and even tailor social media policies to address local circumstances, the report advised.