Energy crisis, geopolitics and cyber top risk outlook for 2023

The energy crisis, political polarisation and mounting cyber risks top a list of five major threats to businesses in 2023, according to travel risk management firm Healix International. Publishing its Risk Outlook report for next year, Healix says threats from extremists and climate change complete the top five risks facing businesses in the year ahead. Healix International says climate risks are expected to cause more major security and operational disruption in 2023. Once-in-a-century extreme weather events are now a yearly occurrence, the report says, with implications for staff travelling abroad and operations across the world. Healix says political polarisation, which was played out in this year’s electoral success for right-wing majorities in Italy and Sweden, is set to continue in 2023. “Businesses that regularly deploy personnel abroad will find that previously benign areas are now mired in political and social unrest. As such, companies will have to tackle extra security and operational risks by enhancing their existing safety measures,” it says. The report, which looks at the specific risks by region, says Russia’s invasion of Ukraine will dominate the security environment in Europe, while also exacerbating economic uncertainty since the Covid-19 pandemic. Record levels of inflation and energy price rises risk civil unrest in the region and support for populist politics, the report says. “From Brussels to Berlin and Prague to Sofia, demonstrators have amassed in their thousands to protest against the rising cost of living and Europe’s reliance on Russian energy,” the report says. Businesses also face increasing costs and disruption from the impact of the Russia-Ukraine war on the energy sector, and Healix warns that businesses face multiple challenges from soaring operational costs in 2023. Chris Job, director of risk management services at Healix International, says: “Business leaders will be well aware of the various disasters and emergencies playing out on the global stage, yet some are inadequately equipped to mitigate the risks they pose to business assets and personnel. Having a sense of the main risks faced by their company cannot alleviate the threat itself, but it can provide business leaders with the ability to proactively implement the necessary measures to enhance their current security procedures.” “Security and risk managers should continuously re-evaluate these threats and regularly conduct thorough risk assessments to determine where their key vulnerabilities lie,” he adds. Businesses are seeing increased levels of cyber risks as digitalisation provides more opportunities for hackers. Healix says the more permanent shift to home and hybrid working has also impacted IT security. “Each employee’s home devices present an easy avenue through which attackers can breach the company’s systems and access highly sensitive data. Companies will therefore be tasked with firming up their cybersecurity measures as well as cultivating employee awareness and vigilance,” it says. Job says ISO 31030, the world’s first best practice benchmark for travel risk management, was published a year ago but awareness levels remain low. He notes that 40% of businesses say they know little about the standard, with just under 20% familiar with the new publication. “It’s end-to-end guidance covering, pre-, during and post-travel activity; it’s comprehensive, in-depth and provides many areas for businesses to compare their base standard and existing activity against. ISO 31030 provides practitioners and businesses with the framework to promote safety and security internally, and enables a culture to do business. From a legal perspective, it is also best practice and therefore should be adopted,” says Jobs.

Energy crisis, geopolitics and cyber top risk outlook for 2023

Awareness of travel risk management standard low

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