Cyber attacks and financial risks have been ranked as the biggest worries for mid-sized businesses, according to QBE North America.
In their 2023 Mid-Sized Company Risk Report, QBE NA sheds light on the dynamic landscape of mid-sized businesses across the United States.
The report, presents an in depth analysis of 12 macro and 99 micro risks as well as preparedness strategies among mid-sized companies with revenues ranging from $200 million to $3 billion.
Among the top concerns for mid-sized businesses are financial risk related to fraud, operational performance and liquidity, encompassing cyberattacks, extended system outages and corporate espionage.
According to QBE, these key areas of concern heavily reflect the “complex landscape” mid‑sized companies navigate.
Interestingly, the percentage of companies with a risk mitigation plan for each macro risk decreased to 43%, which indicates a decline from previous years (46% in 2022, 45% in 2021 and 2020).
QBE noted that both financial and digital risks maintained their position as the most concerning macro risks for four consecutive years.
Both organizational and macroeconomic risks rose in the rankings, while pandemic-related and liability risks witnessed significant declines.
Cyberattacks take the spot as the most concerning micro risk, clearly demonstrating their position as a significant concern within the digital risk category.
Other micro risks that were highlighted included fragile supply chain, recession, inflation, attracting/retaining talent, fraud, operational performance and breach of privacy.
Another key highlight of the findings is that organizational risk overtook business interruption as the third-most concerning area. This is likely to be fueled by challenges in talent attraction and retention, as well as demographic shifts in the talent pool.
Lucas Prahl, Head of Middle Market at QBE North America, commented on the findings from the report: “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, added: “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. It underscores the need for dynamic strategies that address both macro and micro risks, enabling these companies to thrive in an evolving business environment.”