Only 54% of mid-market business owners feel highly protected from their most important risks, according to a new survey from Nationwide.
Many owners say they're prioritizing risk management and safety planning. Among those surveyed, 83% have a dedicated safety budget, and roughly 9 in 10 have formal risk management policies in place. But only 51% of owners see those initiatives as effective.
In an interview with PropertyCasualty360.com, Mark McGhiey, Nationwide’s senior associate vice president of risk management and client services, said many mid-market business owners struggle with creating a comprehensive business continuity plan, which looks at all the risks a business faces and creates systems for prevention and recovery. Among those surveyed, 21% don’t have a business continuity plan in place.
“The problem we’ve seen is the fact that it’s overwhelming for a lot of organizations,” he said. “The fact of how all-encompassing it is — people don’t know where to start.”
Owners are also struggling with the cost of safety measures (38%), maintenance of safety equipment (31%) and the resources required for conducting regular safety assessments (30%).
Three-quarters (78%) say regulatory changes have had an impact on their risk management needs. Fully 1 in 5 (20%) believe their business is unprepared to respond to new regulations.
On top of regulatory changes, business owners are worried about a potential economic downturn and supply chain constraints.
Technology can help. Among those surveyed, 76% say tech provides crucial support in risk management and regulatory compliance, and 11% say it’s central to all their risk management activities. Owners say technology has helped them increase efficiency and regulatory compliance, enhance data analysis and monitor risks in real-time.
Insurance carriers and agents can also be good sources of information and assistance, McGhiey said. “We might not know everything about their operation, but through our efforts of working in the industry, doing risk assessments in the industry, we often have insights into the best practices we’ve observed through time in the market,” he said.
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