Leading risks to SMEs and large companies worldwide in 2023
For 2023, the energy crisis was a leading business risk to companies of all sizes globally according to risk management experts worldwide. The Russia-Ukraine war, rising demand for coal in China, and rising inflation all played a role in the energy crisis that began in 2022. Oil, natural gas, and coal are the most consumed energy fuels worldwide.
How does cybercrime jeopardize businesses?
Cyber incidents pose a multitude of risks to businesses across various aspects. Financially, they can result in direct losses through theft, ransom payments, or disruptions in operations, which affect revenue streams and stability. Between 2001 and 2022, the monetary damage from cybercrime in the United States rose from 17.8 million U.S. dollars to a staggering 10.3 billion dollars. Moreover, cyberattacks can strike various industries, primarily based on the value and accessibility of the information they possess. The main sectors targeted by cybercrime worldwide include public administration, manufacturing, education and transportation.
What challenges do businesses face due to inflation?
Inflation poses numerous challenges to organizations, affecting consumer spending, interest rates, driving up operational expenses, and creating uncertainty in strategic planning. Rising prices frequently result in increased costs for raw materials and wages, thereby reducing profit margins. Throughout much of the 2010s, inflation was consistently low, especially between 2013 and 2020, when it fluctuated between 2.7 and 3.6 percent. However, the annual global inflation rate peaked in 2022, at 8.71 percent, and is expected to decline in the following years. This heightened inflation was a sign that the global economy was undergoing a period of great uncertainty, which made it more expensive to do business.