Insurtech: How the Risk Scenario for Businesses is Evolving

Signed by Sauro Mostarda, CEO of Lokky

The crisis linked tothe increase of cost of living, the effects of climate change, allto growth inflation, cyber attacks and the criticality of infrastructures representsNO theAndA principalAndI threateningeaAnd that the world will have to face in the next two years, according to what emerged from the Global Risk Report 2023the study based on consulting 1200 experts from academia, business and politics to identify future economic, social, geopolitical, environmental and technological risks. Climate and environmental risks are the biggest threat for the next decade, but also the one for which we appear to be least prepared. The lack of significant and coordinated progress on climate objectives has in fact shown the divergence between what is scientifically necessary to achieve zero emissions and what is politically feasible.

If you look at the business world, nohe global risk scenario has evolved in recent years significantly and has become even more complex, due to factors such as globalization, digitalization, the Covid-19 pandemic and the current global geopolitical situation. These events have led to financial, economic and asset inequalities between many companies, causing particular difficulties for small and medium-sized businesses.
Although these events are partly a consequence of the current historical moment, their consequences represent a concrete threat for small and medium-sized businesses which often, unlike large companies, do not have the necessary resources to effectively manage risks. Eurostat data speaks clearly: in the fourth quarter of 2022, company bankruptcies increased by 26% compared to the previous three months, reaching the highest level since 2015. Registrations of new businesses also decreased slightly (-0.2%) in the fourth quarter of 2022 compared to the previous one. Businesses are currently focusing more on energy and raw material supply, value chains and cyber attacks.

In this scenario, risk management takes on an even more central role. With the entry into force of the new Crisis and Insolvency Code, many companies are implementing increasingly sophisticated risk management policies, in collaboration with commercial partners, government institutions and international organisations. Furthermore, they are identifying threats, implementing preventive measures and planning response strategies in case of emergencies.

In the 2020 edition of the Observatory on the diffusion of risk management in medium-sized Italian companies, 97% of the companies interviewed said they did not foresee the pandemic crisis, but in the new edition of 2022, 44.6% of the companies interviewed said Come the scenario of a war is very likely given the political instability at a global level, demonstrating that companies are becoming more attentive to signals coming from the outside and that the risk scenarios in which they operate can vary.

In conclusion, risk management has become a crucial skill for businesses that wish to operate sustainably and thrive in an increasingly complex. Today, one in 4 companies considers it a priority to introduce a risk management and control system (26.5%)* within their company.

*IX Observatory on the diffusion of risk management in medium-sized Italian companies